Internet technology meant absolute changes in many aspects of life, in general and more specifically but deeply in any case with no doubt, starting from the way we communicate and exchange information, to the possibility of existence of many tools and advantages that revolutionized entire industries and fields.

For example, one of these fields was banking solutions that embraced cyberspace and computing devices at its fullest, changing this industry and providing instruments and platforms most banks and financial entities would not survive without them, such as the clear case of CORE banking possibilities as the base service of any software banking solution.

Detailed definition of CORE banking

Conceptually, the acronym “CORE” respecting banking means Centralized Online Real-Time Exchange, as the base technology every bank or financial entity uses to connect its different branches across a region, state or even country, through different networks and with the obvious support of internet, as well as a proper software involved.

So, CORE banking as literal as it would be almost accurate to describe because of its name and function, it is the base service for banking solutions in any of their different forms, such as retail banking, mobile banking, web-based banking and many more, involving inside use from the financial entities and their employees, as well as the use respecting clients of such bank.

Although, the only banking service that is really differentiated from the previously named ones is corporate banking, which is managed using a different technology that is designed to handle other business aspects and security, as those that are not usually involved with individuals or basic type of banking clients. Other than that, CORE banking is practically the heart of software banking.

Characteristics and approach of CORE banking

In terms of characteristics, CORE banking is related to every basic function that is performed by an employee of the bank on any branch, as well as autonomously by the user owner of a bank account, such as withdrawing money from an ATM or a physical office, make a deposit or any other type of operation.
In this way, thanks to this technology such information generated from any changed produced on an account, by an employee or the owner is automatically shown and updated on the data base, so it can be seen on any other branch, on a mobile application used by the accountholder or through other means.

This is where the “Online Real-Time Exchange” comes up.
CORE banking is frequently related to retail banking, and although these terms are not exactly synonyms, the confusion can be more than accepted since CORE technology involves every aspect of retail functions on financial entities. In other words, every individual client of the company and all related financial instruments, allowed processes and operations run under CORE platform.

For example, lending of money procedures like loans and mortgages, payments, transactions between accounts, updating, credit card and debit card use and others, through utilization of mobile banking and web-based banking, ATMs and also physical offices and branches, all of these operations are carried out through CORE banking, with no exception than corporate products.

CORE banking and software

On another part, CORE technology makes part of an even bigger concept known as software banking, so the use of computing tools and programs is imperative.

Therefore, carrying out all of these recording, updating, maintenance, calculation, managing, and general connection and realization of functions on real time is done under proper main software, as well as hardware that involves servers.

At present time, there are plenty of software banking and CORE banking vendors, although IBM, EdgeVerve, Cognizant and Accenture or some of the most known and preferred by small, medium and large financial entities.

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