Core Banking system

When discussing modern banking technology, two terms often come up: core banking and digital banking. While they work together to deliver financial services, they serve very different purposes. Let’s break down what each one does and how they differ. What is Core Banking? Core banking is the centralized back-end system that powers a bank’s most critical operations. Think of it as the engine that keeps everything running behind the scenes. It handles fundamental banking functions such as: Processing deposits, withdrawals, and transfers Managing loans and interest calculations Maintaining customer account records Ensuring compliance with banking regulations These systems are usually built on robust (sometimes legacy) technology like mainframes, though many banks are now shifting to cloud-based core banking solutions for greater flexibility. Popular core banking platforms include Finacle (Infosys), Temenos T24, Oracle Flexcube, and Mambu. Without a reliable core banking system, banks woul...

Switching to a new core banking system (CBS) is a major decision for any financial institution. Whether you're a traditional bank, a credit union, or a digital-only neobank, migrating to a modern core banking platform can significantly improve efficiency, customer experience, and scalability. But one of the biggest questions banks ask is: "How long will this migration take?" The answer depends on multiple factors, including the size of the institution, the complexity of operations, and the technology being adopted. In this blog post, we’ll break down the key stages of core banking migration and provide realistic timelines based on industry standards. Factors Affecting Core Banking Migration Time Before estimating the duration, it’s important to understand what influences the timeline: Bank Size & Complexity Small banks/credit unions: 6–12 months Mid-sized banks: 12–24 months Large banks with multiple products: 2–4 years Type of Migration Big Bang Migration (all at onc...