Do You Know What's at Your Bank's Core? - Finance - Banking
Most banking customers care about whether their money is safe in their bank, what their interest rates are, and how much they will get charged for using an ATM. Another aspect of banking all account holders should be worried about but too few are truly concerned with is the safety of the personal information their bank holds. Along with holding this information in hard copy, all banks have a computer system that holds customer information; this system also executes every aspect of a banks daily operations, from recording deposits and withdrawals to making ATMs run smoothly. This system is run by software called core system software and is truly the nucleus of a bank. Being aware of what core system software your bank uses will help you decide if your bank is doing enough to keep your personal information safe from hackers, unauthorized eyes, and others who you dont want seeing your information.
So what is core system software, exactly? A banks core system software is part of what, literally, a bank is built upon. It is the platform that a banks information technology (IT) department uses to keep account balances updated, make sure that interest is compounded properly, run ATMs, passbook maintenance, and banking records, among other functions. In the past, all of these functions were conducted by hand by banking staff; today computer technology allows banks to improve efficiency, reduce costs for customers, increase accuracy, and better overall service. These improvements not only enhance the experience of customers, they increase profits for bank shareholders and promote overall growth which encourages and permits higher pay and more positions for employees as well as strengthening the banks financial health and standing.
How can one system do all of that? By being a large, complex, and comprehensive system. Core banking software is at the core of all a banks operations. When a customer comes in to deposit a check, the teller takes the check and enters the information into a computer. The software program that receives the tellers input adds the deposit into the customers account and updates to the new balance; this entire process is conducted by a branch of the banks core software. The same program handles withdrawals, cashed checks, calculating interest on accounts, and records debits and credits of loans. When a customer logs into a banks website from home to look at their checking account, another branch of the core system software handles that. Website presence and online banking are also handled through this particular area of the core system. When a customer comes into a bank and applies for a loan, the core system software takes the information and runs it through various parameters to see if the individual meets the banks loan requirements and helps the bank decide if the individual is an acceptable credit risk or not. Another sector of the software stores customer information; another runs the banks ATMs. Yet another handles the banks accounting needs and financial records, while still another focuses on maintaining the banks compliance with local, state, and federal laws and regulations. Some systems handle the security of a banks vault while yet others include sectors for the banks human resource department to handle payroll. Without a secure core financial software platform banks cannot function efficiently and accurately in todays banking environment.
Why is this important to me, as a customer? It is important that you know what system your bank uses because if your personal information is not secure and protected within that core system software, then it is vulnerable to attack. There are several core system platforms on the market today for banks in a variety of choices and configurations, and just like any other product some are better than others. For instance, there are some core system software companies who have been developing platforms for decades, and while they are reliable standbys, they may not update as frequently or utilize the most cutting-edge technology on the market. At the opposite end of the spectrum, some companies utilize the most up-to-date technologies which have not been properly vetted for reliability, security, and functionality. The banks with the best security and overall functionality fall somewhere in the middle and customers need to know where their bank and their information stand. Visi t or call your bank and ask them to help you understand the core system software they use and learn about what they are doing to protect you, your money, and your personal information.