What are the key differences between a core banking system and a billing system?
Banking
Asked by Question Bot09/Aug/20141 answer
1 Answer
F
Faisal Khan
Answered 09/Aug/2014
A Core Banking System is the very heart (or centre) of a bank. There is nothing more central than this. The core banking system contains all the ledgers and accounts for all the money the has, loaned out, is processing, etc. Its the bank's proprietary book of account - in digital format.
A Billing System is invoiced data based on the metric it was measured (think utility companies, credit card bill, cable bill, etc.). A Billing system could interface with a core banking system and is one of the connectors, so to speak.
A billing system does not inherently represent the book of account of money at hand, etc. In fact it is a representation of a transaction receipt based on some measured metric that needs to be settled between (usually) two core banking systems (or even a singular core banking system, if both the Payer/Payee are in the same bank).
A Billing System is invoiced data based on the metric it was measured (think utility companies, credit card bill, cable bill, etc.). A Billing system could interface with a core banking system and is one of the connectors, so to speak.
A billing system does not inherently represent the book of account of money at hand, etc. In fact it is a representation of a transaction receipt based on some measured metric that needs to be settled between (usually) two core banking systems (or even a singular core banking system, if both the Payer/Payee are in the same bank).