About Core Banking Systems
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About Core Banking Systems

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Article summary

A core banking system is a back-end system of record that processes daily banking transactions and posts updates to accounts and other financial records. Core banking systems typically include deposit, loan, and credit processing capabilities, which interface to general ledger systems and reporting tools. Each core is slightly different in how it's structured, and how it requires other systems to communicate with it. We build custom integrations (a "shared language") with each core so that the cores can then communicate with our products—user actions in the Narmi platform are executed, and any changes from the core are displayed. We manage the end user experience for users interacting with the account and the financial institution. By acting as an abstraction layer on top of the core, we control the way users experience banking, replacing legacy experiences with modern, elegant ones.

Cores can be user-based, account-based, or a hybrid, which determines how the core's data is organized.

  • User-based – A person has relationships to accounts, so information is associated to a person with an account. For example, Integrated Banking System (IBS) is a user-based core banking system owned by FIS.
  • Account-based – An account is equivalent to a membership; information is associated with an account, instead of a person. For example, Symitar is an account-based core banking system owned by Jack Henry.

Narmi's integration layer standardizes how information is processed for all core types. Core type impacts the data type needed in conversion files for existing users.

Cores can be hosted onsite at the financial institution, offsite at the core provider, or with a third-party vendor. Location determines who needs to give Narmi connectivity.

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