Glossary entry
Core banking system
The system of record for accounts and transactions: it manages balances, posting, interest, and product servicing.
Category
Lending technology
Definition
How it works
Core banking platforms maintain authoritative records for customer accounts, balances, and transaction history. They post transactions in real time and support interest, fee, and product servicing logic.
Core banking vs LOS
Loan origination systems manage application intake, assessment, decisioning, and documentation. Once a loan is funded, the account is created and serviced in core banking. Strong integration removes manual re-keying.
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