{"id":3641,"date":"2013-11-16T06:41:56","date_gmt":"2013-11-16T06:41:56","guid":{"rendered":"http:\/\/blog.esds.co.in\/?p=3641"},"modified":"2021-02-26T12:00:59","modified_gmt":"2021-02-26T12:00:59","slug":"what-exactly-is-core-banking","status":"publish","type":"post","link":"https:\/\/www.esds.co.in\/blog\/what-exactly-is-core-banking\/","title":{"rendered":"What exactly is Core Banking?"},"content":{"rendered":"\n<p style=\"text-align: justify;\">From the last 3-4 years, we are reading news like \u2018XYZ bank deploys Core Banking Solutions \u2019,\u2019 Bank ABC is implementing Core Banking System \u2019 etc.\u00a0 But what exactly core banking is?<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.esds.co.in\/blog\/what-exactly-is-core-banking\/#Why_we_need_Core_Banking_Technology\" >Why we need Core Banking Technology ?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.esds.co.in\/blog\/what-exactly-is-core-banking\/#CBS_is_required\" >CBS is required<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.esds.co.in\/blog\/what-exactly-is-core-banking\/#Basic_elements_of_CBS_that_helps_customers_are\" >Basic elements of CBS that helps customers are<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.esds.co.in\/blog\/what-exactly-is-core-banking\/#Benefits_of_Core_banking\" >Benefits of Core banking<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><a href=\"https:\/\/esds.co.in\/core-banking-hosting\"><img loading=\"lazy\" decoding=\"async\" width=\"1041\" height=\"363\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2013\/11\/Core-Banking.png\" alt=\"\" class=\"wp-image-10689\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2013\/11\/Core-Banking.png 1041w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2013\/11\/Core-Banking-150x52.png 150w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2013\/11\/Core-Banking-300x105.png 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2013\/11\/Core-Banking-1024x357.png 1024w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2013\/11\/Core-Banking-660x230.png 660w\" sizes=\"auto, (max-width: 1041px) 100vw, 1041px\" \/><\/a><\/figure><\/div>\n\n\n\n<p style=\"text-align: justify;\"><strong>Core Banking Solution (CBS)<\/strong> is the networking of bank branches, which allows customers to manage their accounts, and use various banking facilities from any part of the world.<\/p>\n\n\n\n<p style=\"text-align: justify;\">In simple terms, there is no need to visit your own branch to do banking transactions. You can do it from any location, any time. You can enjoy banking services from any branch of the bank which is on the CBS network regardless of the branch you have opened your account.<\/p>\n\n\n\n<p style=\"text-align: justify;\">For the bank which implements CBS, the customer becomes the bank\u2019s customer instead of the customer of a particular branch.<\/p>\n\n\n\n<p style=\"text-align: justify;\">Execution of Core banking system across all branches helps to speed up most of the common transactions of bank and customer. In Core banking, all branches access banking applications from a centralized server which is hosted in a secured datacenter.<\/p>\n\n\n\n<p style=\"text-align: justify;\">Banking software\/application performs basic operations like maintaining transactions, the balance of withdrawal &amp; payment, interest calculations on deposits &amp; loans, etc. This banking application is deployed on a centralized server &amp; can be accessed using the internet from any location.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_we_need_Core_Banking_Technology\"><\/span><strong>Why we need <a href=\"https:\/\/www.esds.co.in\/banking-community-cloud\" target=\"_blank\" rel=\"noreferrer noopener\">Core Banking Technology<\/a> ?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p style=\"text-align: justify;\">Nowadays, the use of Information Technology (IT) is a must for the survival &amp; growth of any organization and the same applies to the banking industry also. By using IT in any industry, banks can minimize the operation cost; also banks can offer products &amp; services to customers at competitive rates.<\/p>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"CBS_is_required\"><\/span><strong>CBS is required<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>To meet the dynamically changing market &amp; customer needs.<\/strong><\/li><li><strong>To improve &amp; simplify banking processes so that bank staff can focus on sales &amp; marketing stuff.<\/strong><\/li><li><strong>Convenience to customers as well as banks.<\/strong><\/li><li><strong>To\u00a0 Speed up the banking transactions.<\/strong><\/li><li><strong>To expand presence in rural &amp; remote areas.<\/strong><\/li><\/ul>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"Basic_elements_of_CBS_that_helps_customers_are\"><\/span><strong>Basic elements of CBS that helps customers are<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Internet Banking<\/strong><\/li><li><strong>Mobile Banking<\/strong><\/li><li><strong>ATM<\/strong><\/li><li><strong>POS &amp; kiosk systems<\/strong><\/li><li><strong>Fund Transfers \u2013 NEFT, RTGS<\/strong><\/li><\/ul>\n\n\n\n<figure class=\"wp-block-embed-youtube aligncenter wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"ESDS\u2019 Advanced BFSI Solutions is Boosting the Industry\u2019s Processes\" width=\"960\" height=\"540\" src=\"https:\/\/www.youtube.com\/embed\/lHIA_tJ1lbI?start=5&#038;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h1 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Core_banking\"><\/span><strong>Benefits of Core banking<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p>Core banking solutions are beneficial to both banks as well as customers.<\/p>\n\n\n\n<p><strong>A] Benefits For Customers<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Quicker services at the bank counters for routine transactions like cash deposits, withdrawal, passbooks, statements of accounts, demand drafts, etc.<\/li><li>Anywhere banking by eliminating branch banking.<\/li><li>Provision of banking services 24 X 7.<\/li><li>Fast payment processing through Internet banking, mobile banking.<\/li><li>Anytime anywhere banking through ATMs.<\/li><li>All branches access applications from central servers\/datacenter, so deposits made in any branch reflect immediately and the customer can withdraw money from any other branch throughout the world.<\/li><li>CBS is very helpful to people living in rural areas. The farmers can receive e-payments towards subsidy etc. in their account directly. Transfer of funds from the cities to the villages and vice versa will be done easily.<\/li><\/ul>\n\n\n\n<p><strong>B] Benefits For Banks<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Process standardization within bank &amp; branches.<\/li><li>Retention of customers through better customer service.<\/li><li>Accuracy in transactions &amp; minimization of errors.<\/li><li>Improved management of documentation &amp; records &#8211; having centralized databases results in quick gathering of data &amp; MIS reports.<\/li><li>Ease in the submission of various reports to the Government &amp; Regulatory boards like RBI.<\/li><li>Convenience in opening accounts, processing cash, servicing loans, calculating interest, implementing changes in policies like changing interest rates, etc.<\/li><\/ul>\n\n\n\n<p style=\"text-align: justify;\">In India, most of the private sector banks have implemented the Core banking solutions but most of the cooperative banks, Regional Rural Banks are missing the benefits of CBS.<\/p>\n\n\n\n<p style=\"text-align: justify;\">With the help of core banking &amp; the latest technology, private sector banks are giving tough competition to urban co-operative banks(UCBs) &amp; other government-managed banks.<\/p>\n\n\n\n<p style=\"text-align: justify;\">To cope up with the growing needs of customers; co-operative banks need to implement core banking solutions. To face the challenges of a dynamic market, UCBs need to take the help of IT in their operations. Considering the importance of the matter, the Reserve Bank of India (RBI)\u00a0\u00a0 mandated a deadline for Urban Co-operative Banks (UCBs) and advised to implement the core banking solutions (CBS) by December 31, 2013.<br>In India, many IT organizations like ESDS Software are helping in the implementation of cost-effective core banking solutions &amp; Turn-Key Datacenter solutions.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><a href=\"https:\/\/www.esds.co.in\/\"><img loading=\"lazy\" decoding=\"async\" width=\"1257\" height=\"598\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/02\/ESDS-1.jpg\" alt=\"ESDS\" class=\"wp-image-11843\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/02\/ESDS-1.jpg 1257w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/02\/ESDS-1-300x143.jpg 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/02\/ESDS-1-1024x487.jpg 1024w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/02\/ESDS-1-150x71.jpg 150w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/02\/ESDS-1-660x314.jpg 660w\" sizes=\"auto, (max-width: 1257px) 100vw, 1257px\" \/><\/a><\/figure><\/div>\n","protected":false},"excerpt":{"rendered":"<p>From the last 3-4 years, we are reading news like \u2018XYZ bank deploys Core Banking Solutions \u2019,\u2019 Bank ABC is implementing Core Banking System \u2019 etc.\u00a0 But what exactly core banking is? Core Banking Solution (CBS) is the networking of bank branches, which allows customers to manage their accounts, and use various banking facilities from&#8230; <\/p>\n<div class=\"clear\"><\/div>\n<p><a href=\"https:\/\/www.esds.co.in\/blog\/what-exactly-is-core-banking\/\" class=\"gdlr-button small excerpt-read-more\">Read More<\/a><\/p>\n","protected":false},"author":81,"featured_media":10689,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1156],"tags":[1157,1353,1752,286,2614,1751,1158,2611,2610,2612,2613],"class_list":["post-3641","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-core-banking","tag-cbs","tag-core-banking","tag-core-banking-application","tag-core-banking-services","tag-core-banking-services-solutions","tag-core-banking-software","tag-core-banking-solution","tag-definition-of-core-banking","tag-what-is-core-banking","tag-what-is-core-banking-solution","tag-what-is-core-banking-system"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/3641","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/users\/81"}],"replies":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/comments?post=3641"}],"version-history":[{"count":13,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/3641\/revisions"}],"predecessor-version":[{"id":11844,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/3641\/revisions\/11844"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/media\/10689"}],"wp:attachment":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/media?parent=3641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/categories?post=3641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/tags?post=3641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}