Challenges of Core Banking Systems

Abstract

Under core banking, one is not a customer of a branch but is considered as customer of the bank. All the commercial banks have interconnectivity through a common operating system. The interconnectivity between commercial banks are not utilized properly. If the banks could follow a single Loan Originating system (LOS), the credit worthiness of the consumer can be ascertained before a loan is sanctioned. In India, every bank has its own loan originating system which results in loans being dispersed well above the credit limit. A survey conducted among salaried class is a pointer to this. By making a single window LOS, the problem of NPA among the salaried class can be well addressed.

DOI: 10.5901/mjss.2015.v6n5p24