Unlock the Secrets of a Bank’s Core System: A Complete Guide to All Modules

Introduction

Before launching a new content system, a terminology analysis is performed to build a common language foundation. Using the bank’s core system architecture diagram, 246 terms are divided into 12 major modules: Customer, Comprehensive Management, Public, Deposit, Loan, Payment Settlement, Funds, Foreign Exchange, Card, Accounting General Ledger, Risk Management, and Regulatory Compliance.

01. Customer Module

The Customer Information Management module stores basic client data, account relationships, and transaction behavior, enabling precise identification, dynamic risk control, personalized product recommendation, and efficient operations.

Unified Customer View : Integrates all customer data across departments into a single trusted source.

CRM : Manages relationships such as family, guarantee, and group connections.

Customer Segmentation : Classifies customers (e.g., VIP, regular) based on assets and transaction frequency.

Credit Limits : Sets total credit exposure per customer.

Blacklist Management : Records high‑risk accounts and restricts their transactions.

Network Verification : Validates identity via public security, tax, etc.

Service Subscription : Tracks subscribed services like SMS alerts.

Risk Rating : Scores customers dynamically for risk control.

Group Customer Management : Handles corporate group accounts.

Customer Portrait : Analyzes behavior for targeted marketing.

Merge & Split : Handles duplicate accounts or account separation.

Lifecycle Management : Monitors the whole customer journey from opening to closing.

Authorization Delegation : Records authorized agents and their permissions.

Contact History : Stores interaction records with the bank.

Asset & Liability Summary : Calculates total assets and liabilities.

Liability Summary : Summarizes loans and credit card debts.

Contribution Assessment : Quantifies revenue generated by each customer.

Behavior Analysis : Predicts needs based on transaction patterns.

02. Comprehensive Management Module

This module acts as the bank’s management hub, coordinating organization, resources, and decision support across all channels.

Institution Management : Defines hierarchy (head office, branch, sub‑branch) and permissions.

Teller Management : Maintains teller information, roles, and limits.

Permission Matrix : Dynamically assigns role‑based permissions.

Work Calendar : Manages business days and holidays, affecting interest calculations.

Cash Management : Oversees cash allocation and ATM cash‑loading optimization.

Blank Voucher Management : Controls issuance and cancellation of blank vouchers.

Interest Rate Management : Maintains benchmark rates and floating rules (e.g., LPR‑linked mortgage rates).

Exchange Rate Management : Updates foreign exchange rates in real time.

Tax Management : Configures interest tax, stamp tax, etc., with automatic withholding.

Currency Management : Standardizes currency definitions, rates, and multi‑currency accounts.

Security Audit Logs : Records critical operations such as large transfers.

Parameter Management : Drives business rules via configuration tables.

Process Engine : Visually designs workflows (e.g., loan approval) with flexible adjustments.

Message Notification Center : Manages templates for SMS, email, etc.

Data Encryption Service : Encrypts sensitive data like passwords.

Disaster Recovery Switch : Defines RTO/RPO and conducts regular drills.

Version Release Management : Controls upgrade processes with gray‑release capability.

Performance Monitoring Platform : Tracks transaction response time, CPU load, etc.

Terminal Management : Configures POS, password keyboards, and other devices.

Compliance Check Engine : Automatically validates transactions against regulations (e.g., AML).

03. Public Module

Provides shared foundational services for all business modules, similar to utilities in an IT infrastructure.

Product Factory : Rapidly launches new products via parameterized configuration.

Channel Management : Consolidates transaction permissions and display logic across channels (branch, online, mobile).

Transaction Reversal/Correction : Handles exception transactions to maintain ledger consistency.

Interest Calculation Engine : Accurately computes interest for deposits, loans, penalties, etc., supporting daily, monthly, yearly, simple and compound methods.

Fee Factory : Designs and manages fee rules for financial products.

Batch Task Scheduling : Executes periodic jobs like interest posting with dependency handling.

Offline Transaction Processing : Stores transactions locally during network outages and reconciles later.

Reconciliation Service : Verifies accounts between core system and external channels.

Data Archiving Strategy : Moves historical data to low‑cost storage (e.g., tape libraries).

Online Transaction Authorization : Triggers secondary approvals for high‑value transfers.

Customer Risk Limits : Sets exposure caps per customer to prevent fraud.

Transaction Serial Number Generation : Generates globally unique IDs for traceability.

Multilingual Support : Switches UI and prompts between Chinese and English.

Holiday Special Handling : Adjusts business rules during holidays (e.g., auto‑extend term deposits).

System Parameter Hot‑Load : Applies configuration changes without restarting.

Gray Release Control : Tests new features on a subset of customers.

Device Driver Abstraction Layer : Standardizes interfaces for keyboards, card readers, etc.

Transaction Rate Limiting : Protects core services under traffic spikes.

Distributed Transaction Coordination : Ensures atomicity across systems (e.g., core and credit).

API Gateway : Provides standardized, OAuth‑protected interfaces for external access.

04. Deposit Module

The deposit core handles the bank’s liability side, managing all deposit products and related operations.

Current Deposit : No fixed term, daily interest, flexible withdrawal.

Time Deposit : Fixed term and rate; early withdrawal uses current rate.

Notice Deposit : Requires advance notice; offers higher rates.

Agreement Deposit : Corporate accounts with minimum balance and higher rates for excess.

Combination Deposit : Auto‑converts idle balances into time deposits.

Deposit‑in‑Advance : Principal deposited once, interest paid periodically.

Zero‑Deposit‑to‑Withdraw : Monthly fixed contributions, withdrawn in lump sum at maturity.

Education Savings : Tax‑free, capped at 20,000 CNY per student.

Agreement Deposit : Tailored for insurance/social security institutions with negotiated rates.

Structured Deposit : Combines deposit with derivatives for market‑linked returns.

Tiered Interest : Applies different rates based on balance ranges.

Automatic Rollover : Auto‑renews time deposits at maturity.

Partial Early Withdrawal : Allows limited early drawdown while preserving remaining interest.

Sleep Account Management : Reactivates dormant accounts after verification.

Deposit Certificate : Issues proof for visas, bidding, etc.

Deposit Book/Passbook Loss : Handles loss procedures with identity verification.

Account Freeze : Full or partial freeze per legal or risk requirements.

Deposit Insurance Flag : Marks accounts protected up to 500,000 CNY.

Foreign Currency Deposit : Supports multi‑currency accounts with separate interest calculations.

Reversal Transaction : Corrects erroneous deposit operations with dual‑person verification.

Account Transfer : Moves funds between account types (e.g., current to time).

Deposit Interest Basis : Supports actual‑day, 360‑day, 365‑day conventions.

Interest Tax Calculation : Auto‑deducts 20 % tax, differentiates resident vs. non‑resident rates.

Large‑Denomination Deposit : High‑value, negotiable certificates with fixed or floating rates.

05. Loan Module

The loan core manages the asset side, covering origination, repayment, and risk control.

Personal Consumption Loan : 1‑5 year credit for purchases, rate linked to market.

Mortgage Loan : Secured by property, supports equal‑principal or equal‑payment methods.

Business Loan : Small‑business working capital, requires financial statements.

Revolving Loan : Credit line with interest on actual usage days.

Syndicated Loan : Jointly issued by multiple banks to share risk.

Entrusted Loan : Bank acts as agent; funds come from a third party.

Bill Discounting : Purchaser sells commercial bills to bank for immediate cash.

Forfaiting : Non‑recourse purchase of export receivables.

Loan Extension : Extends maturity with new rate and terms.

Loan Repayment : Supports early repayment with possible penalty (1‑3 %).

New Loan Funding : Uses new loan to settle old debt, reducing non‑performing exposure.

Balloon Loan : Low periodic payments, large lump‑sum at maturity.

Repayment Schedule : Detailed calendar of principal, interest, and remaining balance.

Delinquency Management : Tracks overdue loans, triggers collection actions.

Five‑Level Classification : Normal, Special Mention, Sub‑standard, Doubtful, Loss.

Loan Write‑off : Removes unrecoverable loans after regulatory approval.

Collateral Valuation : Dynamic appraisal of assets securing loans.

Interest Rate Tiering : Different rates for different loan periods.

Early Repayment Penalty : Charges 1‑3 % of loan amount for early settlement.

Loan Fund Disbursement : Direct payment to borrower’s counterpart.

Joint Loan : Bank collaborates with internet platforms, sharing risk and profit.

LPR Pricing : Loan rate = LPR + spread (e.g., 50 bp).

Grace Period : 3‑5 days post‑maturity to repay without penalty.

Loan Restructuring : Adjusts terms, rates, or collateral to mitigate risk.

Collateral Insurance : Requires insurance with bank as first beneficiary.

06. Payment Settlement Module

Acts as the “highway” for fund flows, linking customers, the bank, the central bank, and third‑party payment providers.

In‑Bank Transfer : Real‑time, fee‑free transfers between accounts of the same bank.

Cross‑Bank Payment : Uses central bank large‑value or UnionPay clearing systems.

Third‑Party Quick Pay : Enables seamless authentication, signing, and payment without leaving the merchant site.

Payroll Disbursement : Batch processing of employee salaries, supports multi‑currency.

Utility Bill Auto‑Deduction : Automatic payment of water, electricity, etc., after customer authorization.

Check Image Exchange : Digitizes paper checks for clearing via national image system.

Bill (Promissory/Exchange) : Handles bank‑accepted payment instruments.

Letter of Credit Settlement : Guarantees payment in international trade.

Collection and Acceptance : Manages buyer‑seller credit transactions.

SWIFT Remittance : Sends standardized messages for cross‑border fund transfers.

RTGS (Real‑Time Gross Settlement) : Immediate, indivisible settlement of high‑value payments.

Net Settlement : Offsets multiple transactions into a single net amount.

Payment Routing : Chooses optimal path for each transaction, similar to map routing.

Reversal/Refund : Reverses erroneous or non‑compliant transactions.

Payment Limits Management : Sets per‑transaction and daily caps per customer tier.

Payment Password Device : Requires dynamic password for corporate transfers.

Intra‑City Bill Exchange : Centralized clearing of paper bills within a region.

Rural Credit Union Payment : Dedicated clearing network for rural financial institutions.

CIPS (Cross‑border RMB Payment) : Supports RMB settlement abroad.

Payment Fee Sharing : Distributes collected fees among participating parties.

Payment Status Tracking : Real‑time query of payment progress.

Payment Contract Management : Maintains long‑term agreements such as group fund pooling.

Payment Risk Interception : Blocks suspicious transactions using blacklists and behavior models.

Payment Reconciliation Files : Generates daily discrepancy reports for clearing institutions.

07. Funds Module

Manages liquidity, positions, pricing, and asset‑liability matching, acting as the bank’s “funds hub”.

Position Management : Monitors available cash to ensure payment liquidity.

Interbank Borrowing : Short‑term funding from other banks, both pledged and unsecured.

Bond Repo : Uses bonds as collateral for financing (buy‑back and sell‑repo).

Cash Pool : Centralizes group company balances for efficient allocation.

FTP (Funds Transfer Pricing) : Virtual accounting of internal funding costs for performance assessment.

LCR (Liquidity Coverage Ratio) : Ensures high‑quality liquid assets cover 30‑day net cash outflows.

Reserve Management : Tracks statutory and excess reserves at the central bank.

Bill Re‑discounting : Banks obtain low‑cost funds by discounting un‑matured bills at the central bank.

NCD (Negotiable Certificate of Deposit) : Short‑term, standardized funding instrument.

Large‑Denomination Deposit (CD) : High‑value, tradable deposit certificates.

Funding Gap Analysis : Forecasts short‑term cash shortages and plans financing.

Treasury Management : Centralized asset‑liability management to optimize returns.

Foreign Exchange Exposure Hedging : Uses forward contracts to limit currency risk.

Bond Portfolio : Balances liquidity and yield using government and policy bonds.

Funding Transfer Instruction : Standardized command for intra‑bank or cross‑bank fund moves.

Emergency Funding Plan : Pre‑defined sources such as SLF for crisis situations.

Duration Management : Aligns asset and liability maturities to control interest‑rate risk.

Leverage Ratio Monitoring : Limits off‑balance‑sheet exposures to meet regulatory capital requirements.

Funding Business Authorization : Sets permission levels for traders (e.g., 50 M CNY per trade).

Funding Clearing Path : Selects optimal clearing channel (CNAPS, CIPS) to reduce cost.

Liquidity Stress Test : Simulates extreme scenarios like bank runs.

Funding Forecast Model : Predicts cash flow with ≤5 % error.

Agency Funding Settlement : Provides clearing services for smaller banks.

Funding Business Risk Limit : Caps exposure for activities such as interbank borrowing, bond investment, FX trading, and derivatives.

08. Foreign Exchange Module

Handles cross‑border fund flows, FX asset‑liability management, and risk mitigation.

FX Spot & Forward (Conversion) : Immediate or future exchange of RMB and foreign currencies.

FX Hedging (Buy‑Sell Matching) : Offsets client‑generated FX exposure via interbank trades.

FX Exposure Query : Real‑time view of long and short positions per currency.

Central Bank Mid‑Rate : Benchmark rate published daily, with allowable bank spreads.

FX Options : Gives the right (but not obligation) to buy (call) or sell (put) foreign currency at a predetermined rate.

FX Swap : Simultaneous spot purchase and forward sale to hedge currency risk.

FX Deposit : Customer deposits in foreign currency, requiring special accounting and reserve treatment.

FX Loan : Loans denominated in foreign currency, with close monitoring of exchange‑rate impact.

Cross‑border RMB Payment (CIPS) : Settles RMB transactions internationally via the CIPS network.

FX Derivatives : Includes forwards, options, swaps for risk management.

FX Quota Management : Individual annual purchase limit of USD 5 000 000; corporate purchases need proof of transaction legitimacy.

FX Rate Publication : Updates eight FX rates (e.g., spot buy, spot sell) for customer reference.

FX Arbitrage Monitoring : Detects rapid reverse trades to prevent market manipulation.

Foreign Debt Registration : Requires filing of external borrowing with the foreign‑exchange authority.

Travelers’ Cheques : Multi‑currency, internationally accepted payment instrument.

Foreign Currency Cash Handling : Manages inventory of foreign cash, distinguishing circulation and damaged notes.

FX Derivative Margin : Holds margin proportionate to contract value to mitigate counterparty risk.

FX Trade Confirmation : Legal document confirming trade details, used for accounting.

FX Accounting : Converts transactions at trade and settlement dates; differences recorded in exchange gain/loss.

FX Risk Reserve : Central bank‑mandated reserve for forward sales to stabilize rates.

Offshore Account (OSA) : Separate foreign‑currency account for offshore entities.

FX Compliance : System automatically blocks transactions involving sanctioned jurisdictions (e.g., Iran).

FX Profit Sharing : Agreements to split gains from FX activities with counterparties.

FX Exposure Limit : Sets overnight exposure caps per currency (e.g., USD ≤ $100 M).

09. Card Module

Manages the full lifecycle of debit, credit, and prepaid cards, linking them to accounts and payment channels.

Debit Card : Linked to a current account; includes Class I (full features) and Class II.

Credit Card : Provides revolving credit with installment options.

Prepaid Card : Funds loaded in advance, used like an e‑wallet.

Co‑branded Card : Partnership cards (e.g., airline mileage).

Card BIN Management : Assigns first six digits to identify issuer and card type.

CVV2 Code : Three‑digit security code for card‑not‑present transactions.

Card Transaction Routing : Directs transactions to appropriate network (UnionPay, Visa, etc.) based on BIN.

ATM Withdrawal Limits : Sets per‑transaction and daily caps.

Card Password Lock : Locks after three incorrect PIN attempts; requires branch visit to unlock.

Card Loss/Replacement : Immediate lock via phone; replacement issued with a fee.

Card Expiry Management : Monitors upcoming expiry dates and initiates replacement.

Card Transaction Monitoring : Real‑time detection of abnormal patterns (e.g., high‑frequency low‑value tests).

Card Points Program : Earn points per spend; redeemable for gifts or fee waivers.

Card Installment Payment : Splits large purchases into 3‑24 equal installments.

Card Acquiring Business : Provides POS terminals to merchants and processes card payments.

Card Network Settlement : Pays fees to networks (e.g., 0.1 % to UnionPay).

Card‑Account Linking : Supports multiple accounts per card (e.g., RMB and USD).

Card Dynamic Verification : Sends OTP or one‑time password for online payments.

Card Customization : Allows personalized physical or virtual card designs.

Card Transaction Reversal : Reverses uncertain transactions caused by communication failures.

Card Overseas Transaction Switch : Customer can toggle overseas usage via mobile app.

Card Auto‑Debit Authorization : Enables recurring payments for utilities, subscriptions, etc.

Card Tokenization : Replaces real card numbers with tokens for secure payments.

Card Fraud Investigation : Retrieves swipe images, IP logs, etc., for disputed transactions.

10. Accounting General Ledger & Settlement Module

Serves as the financial “central nervous system”, recording all bank transactions, ensuring compliance, and providing data for management and regulators.

Multi‑Dimensional General Ledger : Tracks balances by organization, product, customer, etc.

Accounting Entry Engine : Auto‑generates debit/credit entries per transaction (e.g., deposit creates cash debit and deposit credit).

Internal Account Management : Handles temporary accounts such as clearing or suspense accounts; requires daily zero‑balancing.

Clearing Reserve : Funds held at the central bank for settlement netting.

End‑of‑Day Batch Processing : Runs interest accrual, fee settlement, and reconciliation.

Trial Balance Check : Verifies that total debits equal total credits.

Loss Provisioning : Calculates allowances based on loan classification (e.g., 2 % for “Special Mention”).

Accounting Reversal : Red entries (red) cancel errors; blue entries record corrected amounts.

Inter‑company Transaction Offsetting : Eliminates intra‑group balances for consolidated reporting.

Accounting Period Management : Supports monthly, ten‑day, weekly periods.

Depreciation & Amortization : Applies straight‑line or accelerated methods to fixed assets.

Tax Reporting Interface : Generates data for tax filings and regulatory submissions.

General‑to‑Sub Ledger Reconciliation : Ensures consistency between GL and subsidiary ledgers.

Capital Adequacy Ratio Calculation : Computes Tier 1 and total capital ratios per Basel standards.

Expense Allocation : Distributes shared costs to branches for profit analysis.

Budget Control : Compares actual spend vs. budget; triggers alerts on overruns.

Financial Statement Consolidation : Merges parent and subsidiary statements.

Accounting Policy Configuration : Parameterizes treatment of interest, fees, and other items.

Historical Data Archiving : Moves data older than five years to offline storage.

Audit Trail Tracking : Records user, timestamp, and IP for each entry.

FX Revaluation : Adjusts foreign‑currency balances to current rates; differences posted to other comprehensive income.

Interest Capitalization : Capitalizes eligible interest (e.g., construction loan) into asset cost.

Related‑Party Disclosure : Identifies and reports transactions with related entities.

11. Risk Management Module

Functions as the bank’s risk‑control “brain”, monitoring and quantifying credit, market, liquidity, operational, compliance, and concentration risks.

Basel III Compliance : Meets capital adequacy, leverage, and LCR requirements (e.g., Tier 1 ≥ 6 %).

IRB Credit Risk Model : Calculates PD, LGD, and EAD for internal rating.

Market VaR : Estimates maximum one‑day loss at 95 % confidence.

Operational Loss Database : Stores fraud, system failure, and other loss events for modeling.

AML Monitoring : Flags large (≥ ¥50 k) and split transactions for review.

Customer Risk Portrait : Aggregates credit history and behavior into a 0‑1000 score.

Collateral Haircut : Applies discount rates (e.g., 30 % for real estate) to determine loan‑to‑value.

Concentration Risk Limits : Caps exposure to a single industry or client (e.g., ≤ 15 % of net capital).

Stress‑Test Scenario Library : Pre‑defined shocks such as recession or 30 % housing price drop.

Risk‑Weighted Assets (RWA) : Calculates weighted exposure using regulatory risk weights.

Liquidity Stress Test : Simulates runs and assesses cash‑flow resilience.

Liquidity Coverage Ratio (LCR) : Ensures high‑quality liquid assets cover 30‑day net outflows.

Capital Adequacy Ratio (CAR) : Ratio of capital to RWA.

Liquidity Gap Analysis : Forecasts short‑term cash shortfalls and plans funding.

12. Regulatory Compliance Module

Ensures automatic adherence to supervisory requirements from the People’s Bank of China, the China Banking and Insurance Regulatory Commission, Basel Committee, and international standards.

1104 Reporting : Standardized set of G01‑G61 reports submitted to the CBIRC.

EAST Data Submission : Standardized data feed covering accounts, transactions, and customer information.

Deposit Insurance Flag : Marks accounts protected up to ¥500 k.

Financial Statistics Reporting : Automated collection and transmission of data to the PBOC, SAF, and SAFE.

KYC (Know Your Customer) : Verifies identity, source of funds, and purpose; maintains ongoing monitoring.

Large Transaction Reporting : Reports transactions exceeding regulatory thresholds for AML/CFT.

Related‑Party Transaction Control : Limits and approves credit to shareholders, subsidiaries, etc.

Cross‑border Business Filing : Registers QDII, QFII, and other overseas activities with the State Administration of Foreign Exchange.

Consumer Protection : Implements double‑recording (audio/video) for sales, provides cooling‑off periods.

GDPR Data Protection : Anonymizes EU personal data and controls cross‑border transfers.