Banking business has evolved over a period and grown exponentially encompassing an entire gamut of products and transactions under a wide umbrella. All such activities undertaken by a bank is called Core Banking, a generic term for the complete administration of transactions for the bank through a central database.

A new, state of art Core Banking Solution incorporating the latest technology is the need of the hour. While implementing new technology it is imperative to stem few problems. Orienting old processes to conform to new technology helps you maximize the benefits. 

Obsolete processes need to be replicated into a new technology environment. This initially leads to several bottlenecks: risks, delay and inability to use the new technology completely.

Banks should adopt information technology to manage business and performing assets effectively. Surveys prove 15% customers across branches constitute 80% business. Beyond the financial drivers, IT globalization, increasing compliance and industry consolidation, are some of the other key motivators for opting to core banking system. Banks are shifting from cost reduction to growth. Industry consolidation, increased customer demands and pressure of data management has led banks to feel increasingly limited by the capabilities of their present systems.

In view of RBI’s initiative for implementing various payment and settlement systems intra-bank as well as interbank connectivity is a basic necessity for every bank. With the implementation of RTGS every bank would have to not only computerize the entire functioning of the Treasury department but also would have to consolidate the treasury function and move towards integrated treasury for better funds management.

To achieve the above, getting the organization at the earliest on Core banking platform is of utmost importance. Implementation of the Core Banking solutions paves the way for Introduction of the electronic funds transfer mechanism in a secure way. To sustain growth under the circumstances with continued regulatory requirements, it is essential for banks to have the right Core Banking System in place.