Core banking

Core banking became possible with the advent of computer and telecommunication technology that allowed information to be shared between bank branches quickly and efficiently. Before the 1970s it used to take at least a day for a transaction to reflect in the real account because each branch had their local servers, and the data from the server in each branch was sent in a batch to the servers in the data center only at the end of the day (EOD). Over the following 30 years most banks moved to core banking applications to support their operations creating a Centralized Online Real-time Exchange (or Environment) (CORE). This meant that all the bank's branches could access applications from centralized data centers. Deposits made were reflected immediately on the bank's servers, and the customer could withdraw the deposited money from any of the bank's branches. == Software ==

class diagram depicting a bank account Advancements in Internet and information technology reduced manual work in banks and increased efficiency. Computer software is developed to perform core operations of banking like recording of transactions, passbook maintenance, interest calculations on loans and deposits, customer records, the balance of payments, and withdrawal. This software is installed at different branches of the bank and then interconnected by means of computer networks based on telephones, satellite and the Internet. 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. Systems integrators implement these core banking packages at banks. == Providers ==

While larger financial institutions may implement their own custom core, community banks and credit unions tend to outsource their core systems to system providers. While there is no consensus or a public register on the actual Core Banking Providers, various market research companies like Gartner or Forrester Research release annual deal surveys mentioning platform deals. Most notable Core Banking Providers include Temenos AG, Oracle Financial Services Software, Infosys, SaaScada, SDK.finance, nCino, Mambu, Finastra, Backbase, and Avaloq. == References ==