@accounting bot What is core banking?

@accounting_bot
What is core banking?

Based on a general definition, the integrated electronic banking system is a system that provides all banking products and services and their management and management operations through access to a common and centralized database in the form of a system, the flexibility of this system and customer-centricity is one of its important features. .

Advantages of centralized banking

The benefits and results of setting up comprehensive banking systems in the electronic banking development program include increasing customer satisfaction through the provision of various products and services, increasing operational efficiency, increasing the efficiency and productivity of human resources, managing operational and maintenance costs, and greater ability to comply and It includes compliance with internal and external legal requirements.

The mere presence of the customer at the branch is costly for the bank. The development of electronic services based on comprehensive banking provides the possibility of momentary control of profits and losses and the process of attracting resources and granting facilities. Therefore, providing centralized electronic banking facilities in the long term will significantly reduce costs.
Also, creating appropriate information and operational infrastructures for decision-making and access to information (internal and external), improving the ability to respond to market needs and changes, increasing the speed of responding and streamlining processes, increasing the ability to evaluate banks’ performance, creating the ability to track and follow up customers , products, users, documents, documentation, and transactions, based on a variety of recovery indicators and increasing the ability to monitor banking operations are among other benefits of setting up comprehensive banking systems.

Most of the statistics that are presented today, many people do not know for sure whether they are good or bad. Even the processing does not help to make the information current and up-to-date. If the centralized electronic system is launched, these problems will be easily solved.

Problems facing centralized banking
Currently, some of the existing problems in the development of electronic centralized banking (core banking) are:

1. Difficulty accessing and buying foreign software

2. The difficulty of adapting foreign software to domestic banking operations

3. Failure to design and prepare the core banking software of domestic state banks

4. The difficulty of attracting and maintaining specialist forces in this field

5. Difficulties caused by the lack of recognition of managers and supervisors and inspectors

6. Limitations due to trading regulations

On the other hand, the lack of telecommunication coverage in all parts of the country, the slow development of the infrastructure network, the non-provision of round-the-clock support services, the non-provision of telecommunications services in accordance with the quality required for banking operations, and the high average repair time due to the sensitivity of banking systems, non-compliance The strict SLA from the telecommunications company and the low reliability of the existing network communications (non-specificity of the network) are among the obstacles and challenges of the banks’ communication network.
We will achieve a favorable situation in the field of centralized electronic banking when a comprehensive banking system with the features of full coverage of branches, full coverage of banking products and services, concentration, integration with the ability to develop in the future from both quantitative and qualitative dimensions, responsive and flexible to Legal requirements and new expectations, customer-oriented, providing services with modern architecture without time and place limitations, day and night without interruption and productivity, efficiency and effectiveness should be launched.
With the help of electronic banking, at least 70% of monetary and banking operations will be done electronically, and all people will benefit from banking services in the same way.
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This post is written by Accounting_bot