A core banking system is a back-end financial system that processes financial transactions within an institution. It mainly includes deposits, credit processing and loans.
This system allows customers to make and monitor their transactions with ease without time or locational limitation — this is as explained in its acronym CORE — meaning Centralized Online Real-time Environment. So no worries about closing hours, queues or going all the way to an institution’s physical location. How great is that!
Transparency within an institution is paramount and a secure application ensures exactly that. One such app is FinCore by FinAccess, whose system enables the supervision of transactions through various authorization levels. Any change made within the admin is logged in thereby making it easy to track what was changed and at what exact time.
A great core banking system will always adhere to the aspect of simplicity being key. This means a user-friendly application hence making it more efficient, in turn translating to an increase in customer loyalty. Nobody wants to fumble around trying to find their way around an application’s functionality. A consumer will always opt for a user-friendly option.
The fact that physical filing and paperwork do not come into play means limited professional manpower required to operate and maintain the systems so no bloated workforce.
The main key feature of this system is the centralized reconciliation of transactions. This, coupled with its speed, translates to more work done in less time. It means ease in managing customer database hence an increase in employee efficiency.
Most of the current core banking systems have been integrated with business analytics APIs. This lets the data collected provide insight into issues that an institution may need to be aware of in order to correct or update.
Different solutions are tailor-made to suit clients’ needs. Once again FinCore stands out as it has a Digital Credit Scoring feature that helps in profiling the credit of clients. This, in turn, has helped different institutions, especially Credit Unions and SACCOs, to make better lending decisions. Ultimately, it means a reduction in default rates.
The fact is that in today’s digital age, Core Banking remains to be the pillar of any stable and successful financial institution.