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what is diffrence between ERP and Core banking system?

October 4, 2021Banking core diffrence ERP system

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mehr ghadimi Posted

what is diffrence between ERP and Core banking system?

2 Answers

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Michael Rash Posted

There is a small tie between ERP and Core Banking Systems, the proper selection can be based on what it is that the client or you are looking for.

ERP software has a few key components and design structures. A few examples would be:

1. ERP systems connect the necessary software in order for accurate forecasting to be done. This allows inventory levels to be kept at maximum efficiency and the company to be more profitable.

2. Integration among different functional areas to ensure proper communication, productivity and efficiency

3. Design engineering (how to best make the product)

4. Order tracking, from acceptance through fulfillment

5. The revenue cycle, from invoice through cash receipt

6. Managing inter-dependencies of complex processes bill of materials

7. Tracking the three-way match between purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)

8. The accounting for all of these tasks: tracking the revenue, cost and profit at a granular level.

Core Banking solutions are banking applications on a platform enabling a phased, strategic approach that lets people improve operations, reduce costs, and prepare for growth. Implementing a modular, component-based enterprise solution ensures strong integration with your existing technologies. An overall service-oriented-architecture (SOA) helps banks reduce the risk that can result from multiple data entries and out-of-date information, increase management approval, and avoid the potential disruption to business caused by replacing entire systems. Here, computer software is developed to perform core operations of banking like recording of transactions, passbook maintenance, interest calculations on loans and deposits, customer records, balance of payments and withdrawal are done. This software is installed at different branches of bank and then interconnected by means of communication lines like telephones, satellite, Internet, etc. It allows the user (customers) to operate accounts from any branch if it has installed core banking solutions.

So depending on the situation you may be able to tie a core banking system into an existing ERP system from a top level corporate structure. I think selecting one or the other is the preferred method and it would definitely control cost. Doing a tie in to an existing ERP financial system would require significant hours of customization from the programming level. SAP provides a good structure for both ERP and Core Banking Solutions and I would investigate a software company that has extensive knowledge in both areas.

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Grzegorz Brzęczyszczykiewicz 5 Posted

Probably, ERP systems help businesses from the inside be more profitable, while banking systems do that from the outside. Anyway, these systems help businesses develop, and that’s the most important because it makes entrepreneurs make more money. If I wasn’t a trader, I’d definitely find it more beneficial, but with this platform, I already manage to get a good income.