Common Benefits of Core Banking Solutions

Most Common Benefits of Core Banking Solutions

May 2, 2023 | 4 min read By: admin

With the advancement of technologies, now banks as a business change their ways to provide various services with core banking solutions. Now, every finance sector has adopted mobile technology to run their business online and get connected with more people. From cash transactions to payments all happen online with just one click of a finger.

To increase customer satisfaction and win the trust of clients, banking service providers are trying to introduce themselves with mobile-friendly core banking solutions. Some companies like IBM and Oracle have already started to increase their knowledge base with advanced data processing and automation. Here, we are going to discuss the most common benefits of core banking solutions.

What is Core Banking?

Before looking into the benefits of core banking, you need to know what is core banking. Core banking refers to services provided by different branches of a bank which are connected to the main bank by a back-end system. Core banking provides some solutions including loan management, withdrawals, deposit, and payments in real-time. Mainly core banking acts as a business that offers banking services to other retail and small businesses.

It allows customers to transfer cash by themselves and if any updates happen in the customer’s account, it is posted automatically. This offers customers more freedom and helps to gain more trust from your potential customers. The term in Core Banking, “Core” refers to a Centralized Online Real-Time Environment, that explains that services are provided by branches of one main bank. Customers can experience banking services from the bank as one entity. Customers will be able to conduct transactions from anywhere in the world and use their accounts more independently.

How Does Core Banking Work?

Core banking systems consist of back-end servers that deliver different services like withdrawals, deposits, passbook management, transactions and more. When any customers want to withdraw money from banks or ATMs, the administration sends a request to the bank to approve the transaction. The data center comprises a database, a web server, an application server and a Firewall to protect the whole system if it gets attacked by malware.

Benefits of Core Banking Solutions

Here are the benefits of core banking solutions are mentioned below:

  • Strong Security
  • 24/7 Accessibility
  • Reduce Cost
  • Improved Productivity
  • Others

1. Strong Security

To protect the infrastructure of a system from malware and hackers, core banking use advanced encryption solutions. When someone creates an account, there will be verification with bio details, two-factors of authorization to offer you a strong security base for your all information. Banking regulations and KYC standards are maintained through these features.

2. 24/7 Accessibility

For online core banking, it is important to provide customers with 24/7 accessibility. Because today customers do countless transactions, and online payments via their mobile anywhere anytime. It only gets possible through core banking solutions. If customers face any trouble while processing the banking services, they can contact customer support for help anytime.

3. Reduce Cost

To reduce operational costs, core banking solutions are needed for it, since these functions need some human resources to function. Further, AI-powered infrastructure ensures that operations are completed more quickly and increases documentation accuracy.

4. Improved Productivity

As a result of core banking platforms, multiple branches are connected more quickly, thereby increasing operational efficiency. In this way, banks can process transactions more quickly, regardless of where their clients are physically located.

5. Others:

Here are the other benefits of core banking solutions:

  • Improved customers satisfaction
  • Make it easy on back office tasks
  • Enhanced Banking operations
  • Easy to transact
  • Regulatory compliance
  • Seamless centralized management
  • Accountability
  • Centralized MIS

Conclusion

We hope this article on the most common benefits of core banking solutions will help you to understand it better. If you are struggling with core banking solutions, we are here to help you. If you want to read more articles on trending topics, keep your eye on our blog page.