According to gartner core banking is "A core banking system is the back-end data processing application for processing all transactions that have occurred during the day and posting updated data on account balances to the mainframe. Core systems typically include deposit account and CD account processing, loan and credit processing, interfaces to the general ledger and reporting tools."
Before the 1970s it used to take at least a day for a transaction to reflect in the account because each branch had their local servers, and the data from the server in each branch was sent in a batch to the servers in the data center only at the end of the day (EoD).
Over the following 30 years most banks moved to core banking applications to support their operations where CORE Banking may stand for "centralized online real-time exchange". This basically meant that all the bank's branches could access applications from centralized data centers. This meant that the deposits made were reflected immediately on the bank's servers and the customer could withdraw the deposited money from any of the bank's branches.
Currently following are the global Top 40 in iRanking order list :
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The
global core banking market looks mature, with a significant per-centage
of banks having replaced their legacy systems with more efficient
and flexible core banking systems. The desire to change core generally
depends on the size of the bank, with smaller seeminglymore
willing to undergo a switch, yet with larger banks having more capital
with which to do so, increasing their momentum within the core
market. The main drivers for core replacements are numerous.
The most
obvious is modernization: providing a more cost effective and
efficient way to run core processes. The importance of analytics and its
application with regard to the view of the customer and cus-tomer
service can also be a subdriver for core modernization. Most emerging
markets are finding core replacement a necessity to compete in an
ever more competitive, and regulated banking environment, spurring
lots of movement in new geographies. Some of
the other global trends among the large banks are:„
1) Preference
for an SOA-based system. With many large banks having a
number of independent systems working from different
vendors and in different environments, a service-
oriented
architecture can provide better integration between disparate
entities.
„
2) Analytics,
customer-centricity, and multichannel technologies.
Banks increasingly want a core system that utilizes data analytics
to provide a more complete view of the customer,
which
then allows for better customer-bank communication. Multichannel
options like ATM, mobile, Internet, and IVR are crucial
in attracting and serving customers. Core banking solutions
are also expected to facilitate product development
and provide flexible customization capabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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