Making of core banking system (CBS) or a payment engine

 

Doing anything sincerely in FinTech space will require a core banking system or a payment engine.  Making a core banking system or a payment engine is not just like making an API. It requires dedicated efforts in making the base of a transactional system on top of which you can make various peripheral service and applications.

When you make such a core system, then it should be aligned with the vision of the business. Some of the capabilities which almost all core banking will require is all types of supported payment collection or add balance transactions, and all types of payout/transfers. It needs to perform proper accounting of all types of transactions.

Following is more:

1. Account management: The core system should be able to manage customer accounts, including opening new accounts, updating account information, and performing account maintenance.
   
2. Transaction processing: The core system should be able to process various types of transactions, such as deposits, withdrawals, transfers, and bill payments.
   
3. Customer relationship management (CRM): The core system should provide tools for managing customer data and interactions, including customer profiles, preferences, and transaction histories.
4. Loans and credit management: The core system should be able to manage loan and credit applications, approvals, disbursements, and repayments.
5. Risk management: The core system should have risk management capabilities, such as credit scoring, risk assessment, and fraud detection, to help banks mitigate risk and prevent losses.
6. Integration: The core system should be able to integrate with other banking systems and applications, such as payment systems, treasury systems, and accounting software.
7. Reporting and analytics: The core system should provide comprehensive reporting and analytics capabilities, allowing banks to track transactions, monitor performance, and identify trends.
8. Security & Compliance: The core system must comply with regulatory requirements, such as KYC, AML, and Basel III, PCI DSS, to ensure that the bank meets industry standards and regulations.
9. Security: The core system should provide a secure platform for managing sensitive financial data and transactions, including encryption, authentication, and authorization tools.
10. Customer support: The payment engine should provide reliable and accessible customer support, including 24/7 helpdesk support, online resources, and user guides to help merchants resolve any issues or concerns.
11. Customization: The core system should allow for customization of payment forms and receipts to match the branding and messaging of the customers

 

 Author: Surender Kumar, CTO at iMoney Pay