- Research Article
- 10.37082/ijirmps.v14.i1.232997
Impact of Core Banking Solutions on Operational Efficiency in Large Financial Institutions
- Feb 16, 2026
- International Journal of Innovative Research in Engineering & Multidisciplinary Physical Sciences
- Hemalatha Murugesan
Core banking systems (CBS) form the technological backbone of large financial institutions. Increasing transaction volumes, omnichannel services, and regulatory scrutiny make legacy platforms operational bottlenecks. This study evaluates the impact of core banking modernization using a hypothesis-driven framework and a layered modular architecture model (LMCBA). Integrating API-first design, microservices decomposition, real-time ledger processing, and automated governance, the study demonstrates measurable improvements in transaction latency (25–40%), system uptime (up to 99.8%), reconciliation cycle time (30% reduction), and compliance reporting efficiency (25% faster). The proposed Operational Efficiency Index (OEI) provides a structured evaluation framework linking architecture to banking performance. Findings position core modernization as a strategic operational transformation rather than a purely technical upgrade.
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