PPT ON CORE BANKING

• From,
• U.S.Soundarya
• M.K.Soundarya
• Spandana.K.D
• Latha
• Vanitha
• M.com 3rd sem
• SJBCMS To,
Sunil sir
SJBCMS
 MEANING OF CORE BANKING
• Core banking is a banking service provided by a group of networked bank branches where
customers may access their bank account and perform basic transactions from any of the
member branch offices.
 DEFINITION OF CORE BANKING
• Gartner defines a core banking system as a back-end system that processes daily banking
transactions and posts updates to accounts and other financial records. Core banking systems
typically include deposit, loan and credit processing capabilities, with interfaces to general
ledger systems and reporting tools.
 FULL FORM OF CORE IN BANKING
• CORE is an acronym for "Centralized Online Real-time Exchange", thus the bank's branches
can access applications from centralized data centers.

• Types of core banking

• The most significant types of core banking systems are:
• Internet Banking.
• Phone Banking.
• Automated Teller Machines (ATMs)
• Fund Transfers remotely and immediately (IMPS, NEFT, RTGS etc.)
• Point of Sale systems
 FEATURES OF CORE BANKING
• Customer-On Boarding.
• Managing deposits and withdrawals.
• Transactions management.Interest. ...
• Payments processing (cash, cheques /checks, mandates, NEFT, RTGS etc.).
• Customer relationship management (CRM) activities.
• Designing new banking products.
• Loans disbursal and management.
 EXAMPLES OF CORE BANKING
• Examples of core banking are
• processing credit and loans,
• deposits,
• mortgages, etc.
These services are made available to the customers by the banks through various channels like
• mobile banking,
• branches,
• internet banking, and
• ATM's.
 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.
• Managing customer accounts.
 ADVANTAGES OF CORE BANKING
• Makes the internal staff more competent.
• Minimises human intervention thereby limiting errors.
• Helps prevent frauds and thefts with real-time banking facilities.
• Reduces operational costs.
• Aids in studying changing customer demands.
• Facilitates decision making through reporting and analytics.
 DISADVANTAGES OF CORE
BANKING
• Modern core banking systems can be expensive to buy and maintain, especially for small
and medium-sized banks. Legacy core banking software can leave the entire infrastructure
vulnerable to system failure. The modernization effort will also cost a lot of money.
• Technology-reliant: The CBS-led banking industry is technology-reliant. ...
• Rigid: The CBS in banking industry covers all aspects of the industry today. ...
• Expensive: While CBS in banking may be scaled up to meet market demand, it is costly.
 WHAT ARE THE RISKS OF CORE
BANKING SYSTEM?
• Typically, risks are from Cyber Criminals and vulnerable breaches. A look at the magnitude
of exposure in this sector: On an average, there is an attempted ransomware attack once
every 11 seconds! Some of these attacks are resulting in millions of dollars of losses to the
banks across the globe, every month.
 EVOLUTION OF CORE BANKING
• Computerized core banking systems were introduced in the 1970s and were mainly
developed in-house and operated on mainframes. System capabilities and options have
evolved ever since. For example, package-based solutions started to appear in the 1980s but
were limited in their ability to handle large volumes.
• In the late 1980s, the then deputy governor of Reserve Bank of India (RBI) Dr C Rangrajan
implemented the concept of core banking in India. It formed a platform for facilities like
telebanking, off-site ATM's and customer terminal.