A core banking system is the software used to support a bank’s most common transactions.
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.
• Establishing criteria for minimum balances, interest rates, number of withdrawals allowed and so on.
• Establishing interest rates.
• Maintaining records for all the bank’s transactions.