Core banking has a centralised branch computarisation model where the branches are connected to a central host which incorporates branch automation modules and online multiple delivery channels like ATM, ABBS, Debit card, Credit card, Tele banking, mobile banking, internet banking etc. under one roof. In core banking, there is a central database for the bank and transactions are done centrally, online. It offers integrated products and services to customers round the clock. There is scope for induction of modern banking services and one single software for all the branches and is operated on the bank’s WAN infrastructure.
There is no specific requirement set by NRB to use specific core banking software. Banks are free to choose core banking software as per their own requirement. This software provides all banking requirements but they have their own features and functionality. Now, most of the banks are providing any branch banking system services through the centralized core banking software and value added service like ATM, internet, mobile and branchless banking with the help of banking software.
The objective of computerisation is not to replace men with machines. Rather, the objective is to make the work life more meaningful. As we deal in an industry, which is the largest processor of information and data, reliance on technology is inevitable. Needless to say, absorption and effective utilisation of the new technology will involve a change in structure, organisation and systems as well as attitude of those working in the industry.