Real-time Core Processing Solutions for Community Banks
For more than 50 years, Modern Banking Systems been providing community banks with solutions that allow banks to take advantage of smarter products and better core technology. Our reputation is based on quality, reliability, and rock-solid integrity.
In-house, hosted, or service bureau–our core processing solutions have services and features that are as unique as your bank. We’re a small company made up of big thinkers who believe the right core technology is imperative if banks want to be competitive, maximize efficiency, and to continue meeting the needs of our ever-changing world.
Our real-time core bank processing solution gives you the flexibility and security to select and integrate features that your customers want such as Internet, on-line, and mobile banking.
Choosing a core processing system for your community bank can be one of the most important decisions you’ll ever make. Your decision affects essentially every aspect of your bank’s operations, and can directly impact your ability to grow, meet objectives, and help your customers achieve their goals.
Our core banking software, Essentia, can help to drive improved customer experiences and services across all channels in order to win customer trust while empowering you to deliver the right products and services faster and at reduced cost and risk. We understand banking and can help evaluate risk, enable regulatory compliance, and safeguard your reputation. Keeping community banks strong. Essentia, is the real-time core processing solution from MBS.
The goal of Modern Banking Systems is to provide you with the best solution through consultation, design, superior hardware and software, and ongoing professional support and training.
Preparing for Same Day ACH
The Federal Reserve Bank will require banks to process Same Day ACH transactions beginning in September. This is a 3-phase roll out over a 19-month period beginning September 23, 2016. It will affect your institution and the timing of how you process each day.
PHASE 1 – September 23, 2016
Banks will be required to receive and process Same Day ACH credits. These transactions must be posted with the rest of the transactions for that day. No specific time frame is given for when the transactions must be posted and available to customers. If you’re an on-line, real-time bank, the transactions will be reflected immediately upon processing the file; however, the transactions also need to be included in your final end of day update.
PHASE 2 – September 15, 2017
Banks will be required to receive and process Same Day ACH debits. These transactions must be posted with the rest of the transactions for that day. No specific time frame is given for when the transactions must be posted and available to customers. If you are an on-line, real-time bank, the transactions will be reflected immediately upon processing the file; however, the transactions also need to be included in your final end of day update.
PHASE 3 – March 16, 2018
Banks will be required to have the funds available to all customers from Same Day transactions by 5 p.m. local time. For ATM batch processing banks, this would be accomplished by processing the file and then sending a new positive balance file to your ATM/debit card vendor by 5 p.m. If your bank is on-line and/or real-time for ATM/debit cards, you’ll need to process the ACH file by 5 p.m. local time, and the transactions will be reflected in the customer’s balance for Internet banking and ATM.
There are a few things that the bank should be doing in regards to Same Day ACH.
- Become familiar with the cut-off times at the Fed Window for Same Day processing if you’re planning to originate Same Day ACH.
- If your ACH files come in from a third party correspondent bank, you should find out when these files will be available to you to process. This will help you to establish your new end of day processing time frames and personnel requirements.
- You should also see if your correspondent bank will be notifying you if there’s no Same Day ACH files for that afternoon rather then you checking for the files each afternoon. This could provide you with advanced notice and the ability to start your end of day processing earlier.
IMPORTANT!!Please contact your MBS sales rep to discuss other options which may exist for handling the bank’s processing if you don’t want to have your staff wait for the afternoon Same Day ACH file to come in and then complete your end of day processing that afternoon or evening.
What is core banking?
Core banking software is the heart of any community bank. It’s the behind-the-scenes engine that processes daily banking transactions, and posts updates to accounts and other financial records. Core banking solutions rely on computer and Internet technology to deliver the kind of financial service experience today’s customer’s want.
Core banking technology allows a bank to centralize its record keeping and allows customers to access their information and stay connected using their computer or mobile device 24/7. As an example, a deposit made at one bank location is reflected immediately on the bank’s servers; in turn, the customer can withdraw the deposited money from any of the bank’s branches or ATMs.
Core banking services include mortgages, deposits, loan and credit processing capabilities, with interfaces to general ledger systems, and reporting tools. Banks make these services available to their customers across multiple channels like ATMs, Internet banking, mobile banking, and branches.
The advancement in core banking technology has led to new ways of doing business. These technologies have helped community banks reallocate labor costs, reduce errors, and increase efficiency.
(Communication Technology x Information Technology) + Bank Needs
= Core Banking Solutions
Modern Banking Systems understands banking and the need to move forward. MBS listens to clients, customers, and the banking community to deliver core banking solutions that fit today and well into the future.