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Why Core Banking Is Important

by Soft2share.com

Core banking is a prevalent term in the modern world and before adopting the services, it is good to know what the technology is all about. A lot of reputed banks are often promoting the term and confirm that they have upgraded themselves with core banking technologies.

Core banking platforms have many advantages which is why it has witnessed such widespread adoption and the platform which allows your company or a government organization to provide a seamless experience for their customers.

Creating a Connected Environment

The biggest advantage and the core feature that is gained is enabling clients or customers to be able to do banking transactions anywhere in the city or in the world when a bank’s branch is available in the location. Instead of constraining them to a branch, they should be able to complete every transaction from their location.

The person operating the account can have their home account in a location while they can reside in a different place. The connected environment will also make it easier and safer to do transactions as records will be digitally available for everyone to see. When dealing with a large sum of money, such a method is considered safer as a local branch may not be able to do any unauthorized transactions and the funds available can be checked by employees in a completely different location.
In other words, every time a customer, be it an individual or a company that signs up with a bank will become a patron of the bank as a brand and not to its branch. They no longer need to manually keep changing their home account as core banking platforms will allow them to get every task complete without making such major changes.

Get Most Tasks Completed Quickly and Efficiently

Be it a business customer or an individual, most tasks can be completed in a shorter time when core banking facilities are enabled. The interconnected platform will allow major tasks including keeping track of transactions, withdrawal, payments, calculating interest on available deposits and so on to be completed quickly. It can almost be completed instantly because when core banking setup is combined with mobile banking and the increased internet speeds available today, it is possible to do all this within minutes.

Aids in the Growth of the Brand

When successfully implemented, core banking software or CBS can help cope up with the dynamically changing, competitive market scenario allowing staff to work towards the bank’s growth as a brand rather than as an individual branch. The upgrade allows customers to have a convenient banking experience, extend the bank’s operations to remote areas and speed up every transaction.

When a government agency associates itself with a service provider who supports core banking platform, they can experience all these advantages and more allowing them to provide impeccable service to their clients. The concept of CBS opens up additional services including the ability to do banking using a website, smartphone, use the ATM and transfer funds with conventional methods such as NEFT, RTGS.

Advantages to the Customers

All major banks have already moved onto CBS, enabling customers to get rid of conventional passbooks which took hours to be processed and printed. While a common customer can enjoy the advantages of being able to access their account any time, from anywhere, companies and firms involved in B2B transactions can enjoy much larger benefits. They can transact large amounts without having to visit the bank, can immediately use internet banking to confirm if they have received the sum and SMS notifications make it easier to keep track of money.

Every deposit that is made is immediately reflected in the bank account making it safer and easier to do large-scale business transactions. A government agency when hiring third-party suppliers should always go with a service provider who can help them with CBS to avail all these benefits. It is also a great way to provide solutions to the entire country, especially when services are to be rendered in rural and inaccessible areas. Banks can partner with other banks located in the region to send or receive money.

B2B Transaction Benefits

Core banking is integral in B2B transactions as it provides more advantages to businesses and when payments are done by the government to third-party service providers. CBS allows banks to considerably reduce errors as everything is handled in a centralized environment, transactions are accurate and immediate. A centralized, internet-based database makes it easier to gather reports, submit analytics and they can be submitted to the government or RBI when requested.

In conclusion, with so many benefits associated with it, core banking platforms have become common in every sector and all major banks have made the switch. When hiring a new resource or establishing business partnerships, it is good to deal with banks that support CBS for easy transactions, to keep track of payments made and to do payments to any part of the world easily.

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