Registration for Transfer 2024 is open.Save your spot today →
Core Banking, or a Core Banking System, is a back-end system that processes daily banking transactions across all of the various branches of a given bank. The term “CORE” stands for Centralized Online Real-time Environment. The function of core banking is to connect multiple branches of the same bank to provide 24/7 real-time services for customers.
Core banking services for customers include processing withdrawals and deposits, loan issuance and management, interest calculations, and other relationship management activities.
For the banks themselves, their core banking system integrates with their accounting system to store all account-related information. This includes essential information like account numbers and balances, customer data, and loan payment due dates.
The core banking system also houses a bank’s general ledger, which tracks all transactions across the institution using double-entry accounting. For the bank, this simplifies the process of tracking and calculating daily figures (such as deposits, withdrawals, fee payments, outstanding loan amounts, etc.) to balance their general ledger.
To learn more about Core Banking and other similar topics, take a look at these articles:
- What is a Ledger?
- Which Bank Partner is Best for You? | Modern Treasury Journal
- How to Choose a Bank | Modern Treasury Journal
- Guide to Partnering with a Bank | Modern Treasury Journal
- What is Double-Entry Accounting? | Modern Treasury Journal
- Enforcing Immutability in your Double-Entry Ledger | Modern Treasury Journal
- Ledgers | Modern Treasury
Try Modern Treasury
See how smooth payment operations can be.
Core Banking Systems are codes that ensure accuracy of transactions.
A sort code is a type of routing number used in the United Kingdom and in Ireland. It’s composed of six digits divided into three pairs. It routes money transfers by identifying the banks involved, as well as the location of the specific branches where the accounts are held.
Subscribe to Journal updates
Discover product features and get primers on the payments industry.