Core banking

Core banking is a general term used to describe the services provided by a group of networked bank
branches. Bank customers may access their funds and other simple transactions from any of the
member branch offices.

Contents
[hide]
• 1 Core Banking
• 2 Core Banking Solutions
• 3 Select Core banking application package
vendors (ISVs)
• 4 References

Core Banking
Core Banking is normally defined as the business conducted by a banking institution with its retail and
small business customers. Many banks treat the retail customers as their core banking customers, and
have a separate line of business to manage small businesses. Larger businesses are managed via the
Corporate Banking division of the institution. Core banking basically is depositing and lending of
money.
Nowadays, most banks use core banking applications to support their operations where CORE stands
for "Centralized Online Real-time Exchange". This basically means that all the bank's branches access
applications from centralized datacenters. This means that the deposits made are reflected immediately
on the bank's servers and the customer can withdraw the deposited money from any of the bank's
branches throughout the world. These applications now also have the capability to address the needs of
corporate customers, providing a comprehensive banking solution. A few decades ago it used to take at
least a day for a transaction to reflect in the 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 datacenter only at the
end of the day (EoD).
Normal core banking functions will include deposit accounts, loans, mortgages and payments. Banks
make these services available across multiple channels like ATMs, Internet banking, and branches.

[edit] Core Banking Solutions

Core banking solutions are banking applications on a platform enabling a phased, strategic approach
that is intended to allow banks to improve operations, reduce costs, and be prepared for growth.
Implementing a modular, component-based enterprise solution facilitates integration with a bank's
existing technologies. An overall service-oriented-architecture (SOA) helps banks reduce the risk that
can result from manual data entry and out-of-date information, increases management information and
review, and avoids the potential disruption to business caused by replacing entire systems.
Core Banking Solutions is new jargon frequently used in banking circles. The advancement in
technology, especially internet and information technology has led to new ways of doing business in
banking. These technologies have cut down time, working simultaneously on different issues and
increasing efficiency. The platform where communication technology and information technology are
merged to suit core needs of banking is known as Core Banking Solutions. Here, computer software is
developed to perform core operations of banking like recording of transactions, passbook maintenance,
interest calculations on loans and deposits, customer records, balance of payments and withdrawal.
This software is installed at different branches of bank and then interconnected by means of
communication lines like telephones, satellite, internet etc. It allows the user (customers) to operate
accounts from any branch if it has installed core banking solutions. This new platform has changed the
way banks are working.
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. Strategic spending on these systems is based on a combination of service-oriented architecture
and supporting technologies that create extensible, agile architectures.[1]

[edit] Select Core banking application package vendors (ISVs)

While many Banks implement custom (bespoke) applications for core banking, others
implement/customize commercial ISV packages. Here are a few prominent ones, in alphabetical order
(but sortable)...
Overview of Core Banking Solutions and their providers
Package Provider
BankFusion Universal Banking Misys
Misys Equation Misys
Misys Midas Plus Misys
Finacle Infosys
CFT-Bank Center of Financial Technologies (CFT)
Lending Solutions Indus, a business unit of R Systems International Ltd.
Alnova Financial Solutions Accenture / Alnova
COBIS (Cooperative Open Banking
COBISCORP
Information System)
TCS BaNCS Tata Consultancy Services (TCS)
Bankway Fidelity National Information Services (FIS)
Corebank Fidelity National Information Services (FIS)
SAP Transactional Banking SAP AG
FLEXCUBE Oracle Financial Services Software
Hogan Computer Sciences Corporation
Insite Banking System Automated Systems, Inc.
Intellect Core Polaris Software Lab Limited
ICBA Infopro Sdn Bhd
Profile (software) (formerly Sanchez
Fidelity National Information Services (FIS)
Profile)
Signature (software) Fiserv
Fidelity National Information Services (FIS) (formerly
Systematics
Systematics, Inc/ Alltel)
TEMENOS T24 Temenos Group
CoreSoft, SuVikas VSoft Corporation
While many banks run core banking in-house, there are some which use outsourced service providers
as well. There are several Systems integrators like IBM which implement these core banking packages
at banks.

Retail banking

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Retail banking refers to banking in which banking institutions execute transactions directly with
consumers, rather than corporations or other banks. Services offered include: savings and transactional
accounts, mortgages, personal loans, debit cards, credit cards, and so forth.

Contents
[hide]
• 1 Types of banking
• 2 See also
• 3 References
• 4 External links

[edit] Types of banking

• Commercial bank has two meanings:
• Commercial bank is the term used for a normal bank to distinguish it from an investment
bank. (After the great depression, the U.S. Congress required that banks only engage in
banking activities, whereas investment banks were limited to capital markets activities.
This separation is no longer mandatory.)
• Commercial bank can also refer to a bank or a division of a bank that mostly deals with
deposits and loans from corporations or large businesses, as opposed to normal
individual members of the public (retail banking). It is the most successful department of
 banking.
• Community development bank are regulated banks that provide financial services and credit to
underserved markets or populations.
• Private banks manage the assets of high net worth individuals.
• Offshore banks are banks located in jurisdictions with low taxation and regulation. Many
offshore banks are essentially private banks.
• Savings banks accept savings deposits.
• Postal savings banks are savings banks associated with national postal systems.
Retail Banking services are also termed as Personal Banking services

Private banking
Private banking is a term for banking, investment and other financial services provided by banks to
private individuals investing sizable assets. The term "private" refers to the customer service being
rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank
advisers. It should not be confused with a private bank, which is simply a non-incorporated banking
institution.
Historically private banking has been viewed as very exclusive, only catering for high net worth
individuals with liquidity over $2 million, although it is now possible to open some private bank
accounts with as little as $250,000 for private investors.[citation needed] An institution's private
banking division will provide various services such as wealth management, savings, inheritance and tax
planning for their clients. A high-level form of private banking (for the especially affluent) is often
referred to as wealth management. For private banking services clients pay either based on the number
of transactions, the annual portfolio performance or a "flat-fee", usually calculated as a yearly
percentage of the total investment amount.[1]
The word "private" also alludes to bank secrecy and minimizing taxes through careful allocation of
assets or by hiding assets from the taxing authorities. Swiss and certain offshore banks have been
criticized for such cooperation with individuals practicing tax evasion. Although tax fraud is a criminal
offense in Switzerland, tax evasion is only a civil offence, not requiring banks to notify taxing
authorities.[2]

Contents
[hide]
• 1 Private bank rankings
• 2 Scale
• 3 See also
• 4 References
Private bank rankings
According to Euromoney's annual Private bank and wealth management ranking 2010, which consider
assets under management, profitability, ratio of clients to relationship managers and services offered,
global private banking assets under management are down substantially YoY, from $11.8 trillion to $6.8
trillion.
[3]
Best private bank for ultra high net worth ($30m+) 2010. This table displays results of one category of
the Private bank ranking. [4]

Rank 10 Company Rank 09

1. JPMorgan 3
2. Goldman Sachs 2
3. UBS 1
4. Credit Suisse 6
5. HSBC 4
6. Citigroup 5
7. Pictet 8
8. Deutsche Bank 7
9. Rothschild 11
10. BNP Paribas 10
JPMorgan took the top spot in Euromoney's 2010 poll for "Best private bank for ultra high net worth
($35m+) 2010." [5]

[edit] Scale
According to Scorpio Partnership's Annual Private Banking Benchmark for 2010, the largest private
banking division is at Bank of America, followed by UBS AG, Morgan Stanley Smith Barney, and
Wells Fargo. Each of these institutions gathered more than $1 trillion in assets under management for
private clients. The annual ranking of the global wealth managers showed a relatively static picture as
well in terms of positioning although assets (driven mostly by asset management) grew substantially.
Indeed, the top 10 now collectively manage USD8.733 trillion in HNW assets, representing 64% of the
total industry of fee-based managed assets today. While the top 20 manage USD10.451 trillion,
representing 77% of the market, up from USD9.2 trillion in the previous year. Scorpio Partnership
Benchmark 2010, Press Release and summary.