Banking Preparation (Nepal Bank Limited, Nepal Rastra Bank, RBB & ADBL

Core Banking System (CORE)

A core Banking system is the software used to support a bank's common transactions. As per pure definition core banking refers to a centralized system established by a bank which allows its customers to conduct their business irrespective of the bank's branch.  Thus, it removes the impediments of geo-specific transaction. In fact, CORE is an acronym for "Centralized online real-time exchange", thus the bank's branches can access applications from centralized data centers. Other than retail banking customers, CORE banking is now also being extended to address the requirements of corporate clients and provide for a comprehensive banking solution. 

Minimum features of Core Banking Solution:  

- Customer-On Boarding. 

- Managing deposits and withdrawals.

- Transactions Management

- Interest Calculation and management

- Payments processing (cash cheques/Checks, Mandates, NRFT, RTGS etc.)

- Customer relationship management (CRM) activities.

- Designing new banking products

- Loans disbursal and Management

- Accounts management

- Establishing criteria for minimum balances, interest rates, number of withdrawals allowed and so on. 

Elements of CORE banking include:

- Making and servicing loans.

- Opening new accounts

- Processing cash deposits and withdrawals

- Processing payments and cheques 

- Calculating Interest

- Customer relationship management (CRM) activities.

- Establishing criteria for minimum balances, interest rates, number of withdrawals allowed and so on. 

- Establishing interest rate

- Maintaining records for all the bank's transactions.

    CORE banking systems are aimed at empowering existing and probable customers to have a greater freedom of their account transaction. With technological evaluations, transactions are now safer, faster and less cumbersome. The fact that these transactions can be executed remotely, from any part of the world has made core banking systems a significant aspect of banking these das. CORE banking functions differ depending on the specific type of bank. Retail banking, for example, is geared towards individual customers; wholesales banking is business conducted between banks; and securities trading involves the buying and selling of stocks, shares and so on. CORE banking systems are often specialized for a particular type of banking. Products that are designed to deal with multiple types of core banking functions are sometimes referred to as universal banking systems. Examples of core banking products include Infosys' Finacle, Bank Plus, Globus & Temenos T24 Nucleus Finacle and Oracle's Flex cube application (from their acquisition of Indian IT vendor iflex) 

 CORE Banking Systems (CBS) Characteristic/Feature:

- Centralized system: ECC

- Online transaction : ATM, Debit cards, Credit Cards

- Real time exchange

- ABBS : East to operate

- Consolidated Balance sheet

- Easy to monitor and control 

- Promote response

CORE Banking Systems (CBS) Objective:

- E-banking, Mobile Banking, SMS banking

- LC & Bank Guarantee  

- Work fast & cost control

- Paper work and work loan reduces