Core Banking system is a \u201cnuclear\u201d handle the entire transaction and data in the bank, from open accounts, make deposits, transfer to credit management, accounting and reporting. Can visualize the Core Banking-like operating system centers to ensure all transactions take place continuously, accurate, synchronized across all channels such as counters, Internet Banking or Mobile Banking.<\/p>\n
In the context of convert numbers are going strong in Vietnam, the bank is forced to modernize Core Banking system to meet the needs to operate 24\/7, control risk, improve customer experience.<\/p>\n
The same Lac Viet<\/a> find out details about Core Banking system in this article.<\/p>\n Core Banking<\/strong> is the system technology to allow banks to handle the entire focus of the transaction and customer data in real time. Core Banking platform is the operating center help bank management, financial products, provides services through multiple channels of transactions<\/p>\n<\/blockquote>\n If the banking as a living body, the Core Banking is the heart pump data throughout the system. All transactions must go through the Core Banking to ensure the accuracy, consistency and safety.<\/p>\n Simple explanation: When you transfer the account from the app Mobile Banking<\/a>, Core Banking system will check balances, validate, implement, pen math subtraction \u2013 plus, updates the ledger and report the results for all channel related. The whole process takes place in seconds thanks to the processing power of focus system.<\/p>\n With respect to the organizations and enterprises are looking for information about Core Banking what is the properly understand this concept helps visualize the value of the system with respect to banking activities, where accuracy, speed, security is always mandatory criteria.<\/p>\n A Core Banking system is the often operated by architecture centralized processing, including the layer (layers) from the user interface to the system database.<\/p>\n Process basic operation:<\/p>\n For example easy to understand: When customers move 5 million from Vietcombank to BIDV, Core Banking Vietcombank will:<\/p>\n This suggests that the Core Banking not only transaction processing internally, but also plays a central role in the connected bank \u2013 extremely important in the transformation of today.<\/p>\n A Core Banking system is the often includes the core components follows:<\/p>\n The ingredients on the form the \u201cbackbone\u201d help banking activities operate continuously, meet large number of transactions every day, serving millions of customers that do not occur interrupted.<\/p>\n Core Banking traditional model is that the entire system is installed, operating and maintenance directly at the data center of the bank. This is pattern is in common use from the period 2000-2015, still appears in many large-scale banking.<\/p>\n Many banks use the platform from 10-20 years ago are experiencing problems such as slow processing speed, limited number of transactions, does not meet the requirements 24\/7, or risk stop system due to hardware obsolescence. This is the reason increasingly more priority banking upgrade or transition to a Core Banking modern.<\/p>\n With the development of cloud computing model, Core Banking Cloud-native is becoming the dominant trend in conversion of the bank.<\/p>\n Architecture Microservices \u2013 API-first<\/strong><\/em><\/p>\n Different architecture monolithic (monolithic) of the traditional system, version, Cloud-native is broken down into microservices, each component responsible for a specific professional such as accounts, billing, credit, risk management. This helps the bank:<\/p>\n Advantages<\/p>\n Trend of shifting to the Cloud<\/strong><\/em><\/p>\n According to a report by McKinsey, more than 70% of the global banks are in the roadmap transfer part or the whole system Core to Cloud to meet the requirements of growth, transaction number, reduce operating costs.<\/p>\n This is an indication that Cloud-native will become the general standards of the banking industry in the next 5-10 years.<\/p>\n This model is Core Banking, new generation, combining AI, machine learning (Machine Learning), automation to accelerate processing, reduce risk, enhance customer experience.<\/p>\n The role of AI in the banking<\/strong><\/p>\n Business get nothing from the pattern AI-Core?<\/strong><\/em><\/p>\n This is the most appropriate model for the organizations and enterprises are looking for information about Core Banking what is and want to strategic direction digitized the long term.<\/p>\n The selection of Core Banking is one of the decisions most important technology of the banks, financial institutions. System core not only is the center operated the transaction, but also directly affect the competitive ability and the speed of innovation and effective risk management. So, businesses should assess the skills according to the criteria below.<\/p>\n With the organizations and enterprises are looking for information about Core Banking is what, this is the important criteria to ensure the system remains consistent within the next 10-15 years.<\/td>\n<\/tr>\n A Core Banking system, though modern came need deployment process closely to ensure stable operation, smooth operation. Here are 4 important steps that businesses should apply.<\/p>\n In the first phase, businesses need to clearly define the objective: upgrade the old system, bank building number, reduce operating costs or to expand the new service.<\/p>\n At the same time, need to assess the current state: the business processes are used, points of congestion, the ability to meet your current system.<\/p>\n The analysis helps clear the architectural choices appropriate technology, avoid waste and limit changes are not needed in the future.<\/p>\n The data from the old system needs to be standardized before putting on Core Banking new. This helps banks avoid risk of bias, data loss or duplicate transaction information.<\/p>\n Many organizations choose to deploy parallel (parallel run) to collate data between the old and the new system aims to ensure the absolute accuracy.<\/p>\n Testing (testing) is the most important step, to ensure system operation stability before putting them into actual operation.<\/p>\n Banks need testing:<\/p>\n Only when the whole results are achieved level of safety, new business moved into the phase cut-over (switch system).<\/p>\n In the transition of banking, Core Banking system plays the role as the \u201cbackbone\u201d transaction processing, data management. However, to optimize operational efficiency, shorten the time to serve customers, the banks now tend to expand to the solution of chemical comes as AI OCR system, data management SureDMS and LV-DX Dynamic Workflow automation. This is the layer technology helps to transform Core Banking the ecosystem operate seamlessly, reducing manipulation craft, support the control risk better.<\/p>\n Here are three solutions stand out from Vietnam, suitable for banks and credit institutions, expand the system in an effective way.<\/p>\n AI OCR (Optical Character Recognition)<\/a> is the character recognition technology with artificial intelligence, allows for \u201cvariable\u201d image documents into digital data. This technology is key in digitized records, KYC, credit agreement, the transaction documents or the type of template internal.<\/p>\n If the former employee must enter each line of information from the ID\/CCCD or contract paper up Core Banking system, and AI shall OCR automatic read \u2013 extract \u2013 categorical data in just a few seconds.<\/p>\n Actual values bring to the bank:<\/p>\n LV SureDMS<\/a> is the hosting platform \u2013 manage \u2013 lookup electronic document according to standard business. In the bank, ECM's role as the \u201cdatabase security\u201d, to ensure records are secure, decentralized control, life cycle, material and meet the requirements of inspection and audit.<\/p>\n Can visualize LV SureDMS like \u201cthe electronic record standardized\u201d, where all the relevant documents, customer, credit, transaction or collateral is stored, organized access is instant.<\/p>\n The actual value for the bank:<\/p>\n1. Overview of Core Banking is what?<\/h2>\n
1.1 Workflow Definition<\/h3>\n
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1.2. Core Banking system works how?<\/h3>\n
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1.3. The main components in the Core Banking system<\/h3>\n
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2. The model Core Banking popular today<\/h2>\n
2.1. Core Banking traditional (On-premise)<\/h3>\n
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\n Advantages<\/strong><\/td>\n Cons<\/strong><\/td>\n<\/tr>\n \n \n \n
Greatest weakness of the traditional system is difficult to expand and expensive cost. Each upgrade version or change business processes all need to intervene deeply into the core architecture, which leads to:<\/p>\n \n
2.2 Core Banking modern running on the Cloud<\/h3>\n
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2.3. Core Banking integration of AI and Automation<\/h3>\n
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3. Businesses should choose Core Banking system like? The evaluation criteria<\/h2>\n
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\n The criteria<\/strong><\/td>\n Details<\/strong><\/td>\n<\/tr>\n \n \n Safety \u2013 security<\/h3>\n<\/td>\n
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\n \n Performance handling<\/h3>\n<\/td>\n
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\n \n Scalability<\/h3>\n<\/td>\n
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\n \n Integrated AI<\/h3>\n<\/td>\n
AI is becoming a mandatory element of the Core Banking new generation. The ability to integrate AI helps banks:<\/p>\n \n
\n \n Investment costs \u2013 operating<\/h3>\n<\/td>\n
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4. Deployment process Core Banking efficiency<\/h2>\n
Step 1: requirements analysis<\/h3>\n
Step 2: data Integration<\/h3>\n
Step 3: test \u2013 switch<\/h3>\n
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Step 4: operation and optimum<\/h3>\n
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5. Solution digitized data and automate processes from Vietnam \u2013 the first Step of the conversion of the bank<\/h2>\n
5.1. AI OCR in digitizing customer profile<\/h3>\n
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5.2. The storage system profile electronic documents LV SureDMS<\/h3>\n
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5.3. LV-DX Dynamic Workflow automation approval in the bank<\/h3>\n