Core banking. Segmenting/Partitioning the Banking Space

Having understood that the main enemy of Resilience is complexity and having investigated the techniques of addressing complexity, it is time to apply these techniques towards our main purpose – the development of a resilient core banking system.

The first question in system design is always the scope – “What is the scope of the system being covered?”  This is a question that every system designer needs to confront right at the outset.

This question of scope best lends itself to analysis in a top down approach

The scope of a system is always defined in terms of the needs that it will cater to and the customers it will serve

The first question then for this blog is to address what should be the scope of the Core banking system that it will seek to cover.

The primary objective of this blog is to design a resilient core banking system.

A useful way to segment the banking “services/needs map is as given below. It identifies two kinds of customers – Individual or Corporate - and 2 kinds of needs – Transactions or Capital.  

Source: http://www.insightasia.com/banking.html

The above Banking Matrix framework divides the banking space in to four different types of space: 

(1)Retail Banking

(2)Private banking

(3)Corporate banking

(4)Investment banking