9.
Explanation
The statement “Core Banking system has changed the entire banking scenario” is indeed significant, and its impact can be critically examined from several perspectives:
1. Operational Efficiency: Core banking systems have streamlined banking operations by centralizing data and services. This has reduced manual processes and paperwork, leading to improved operational efficiency.
2. Customer Convenience: Customers now have access to a wide range of services, such as online banking, mobile apps, and ATMs, which provide convenience and 24/7 accessibility. This has transformed the customer experience.
3. Risk Management: Core banking systems enable better risk assessment and management through real-time data. Banks can monitor transactions and detect fraud more effectively.
4. Globalization: These systems have facilitated international banking, making cross-border transactions smoother. It has also led to a more interconnected global financial system.
5. Financial Inclusion: Core banking systems have played a role in extending banking services to unbanked or underbanked populations, fostering financial inclusion.
6. Challenges: While there are numerous benefits, there are challenges, such as cybersecurity risks and the need for constant system upgrades to adapt to changing technology.
7. Dependency on Technology: Banks are now highly dependent on technology, making them vulnerable to outages and cyberattacks.
In conclusion, core banking systems have indeed brought significant transformation to the banking industry, but this transformation comes with both advantages and challenges that must be critically examined. Their influence extends beyond the operational aspect to impact customer experience, risk management, and financial inclusion, among other areas.