The Banking industry has been growing by leaps and bounds with each passing day. Over the past decade, it has transformed tremendously and the services offered cater to many demands over and above merely disbursing loans and collecting deposits. Today, the entire gamut of banking products and services are managed collectively through Core Banking.

But, what is Core Banking?

Core Banking is a term given to a centralised system wherein all banking functions, activities, processes and departments are linked across all the branches. They enable all customers of a bank, and not just the branch, to receive banking operations from anywhere.

As the full form of CORE suggests – “Centralised Online Real-time Exchange”, banks have access to business in real-time through data centres.

core banking

Architecture of Core Banking System

Core Banking Systems are an integration of business across the channels, customers, data etc. and are linked in a many-to-many (or n to n) relationship. Here’s is how a CBS architecture looks like…

cbs architecture

Earlier the core banking solutions were used to serve retail banking customers only, but today their operations have been extended to corporate clientele too. There are several advantages of core banking solutions to both the banks and their customers.

Listed down are a few major benefits of core banking to banks and financial institutions:

  • Improved efficiency and productivity
  • Minimised human errors
  • Compliance with all regulatory standards
  • Customer-centric data
  • Smooth payment processing
  • Easy customer on-boarding
  • Loan disbursements and recovery
  • Analytics across departments for actionable insights
  • Management of accounts
  • And lots more…

Today, core banking has become a basic necessity for banks to efficiently run their businesses. The regulatory body i.e. the Reserve Bank of India (RBI) has set certain guidelines for banks of all sizes to implement and practice core banking.

Sesame is an ideal core banking solutions provider for banks and cooperative societies. Its comprehensive functions enable financial institutions to grow their business and profits in tenfold. To know more about its features and capabilities, get in touch today!

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