Core Banking Use Cases: Complete Coverage
Comprehensive coverage of all core banking use cases from retail banking to lending, payments, cards, and risk management with regulatory requirements.
Use Case Coverage
A complete core banking platform must support the full spectrum of banking operations. This chapter provides comprehensive coverage of all major use case categories, their key features, regulatory requirements, and success metrics.
For each use case category, we define: Business Process, Key Features, Regulatory Requirements, Integration Points, and Success Metrics. This framework ensures complete coverage and guides product prioritization.
1. Retail Banking
Current Accounts
| Use Case | Key Features | Success Metrics |
|---|---|---|
| Account Opening | Digital onboarding, instant creation, video KYC, e-signature | Time to open: under 5 min |
| Transaction Processing | Real-time posting, multi-currency, overdraft management | Processing time: under 100ms |
| Account Management | Balance inquiries, statement generation, account closure | Self-service rate: over 90% |
Savings Accounts
- Goal-Based Savings: Customer-defined goals with progress tracking
- Interest Calculation: Daily accrual, tiered rates, promotional rates
- Term Deposits: Fixed terms, early withdrawal penalties, auto-renewal
- Multi-Currency: Hold balances in 30+ currencies with real-time FX
Digital-first account opening in under 5 minutes vs. industry average of 2-5 days. Integrated KYC/AML at onboarding reduces compliance burden by 40%.
2. Lending
Loan Products
| Product | Key Features | Success Metrics |
|---|---|---|
| Personal Loans | Unsecured, fixed/variable rates, 1-7 year terms | Time to decision: under 30 sec |
| Auto Loans | Secured, asset valuation, dealer integration | Approval rate: 65-75% |
| Mortgages | Residential/commercial, LTV calculation, property valuation | Time to offer: under 48 hours |
| BNPL | Point-of-sale integration, installment plans | Conversion: over 15% |
| Credit Cards | Virtual/physical issuance, credit limits, rewards | Virtual issuance: under 2 min |
Loan Origination Workflow
- Application: Digital capture, document upload, data validation
- Identity Verification: KYC checks, fraud screening, watchlist screening
- Credit Assessment: Bureau pull, AI/ML scoring, affordability calculation
- Decisioning: Auto-approve, auto-decline, or refer to underwriter
- Documentation: Contract generation, e-signature, compliance disclosure
- Disbursement: Fund transfer, account setup, payment schedule
- Servicing: Payment collection, statement generation, customer support
- Collections: Arrears management, workout plans, recovery actions
AI-powered credit decisioning delivers 15-20% reduction in defaults while increasing approval rates by 20-30%. End-to-end loan origination in under 24 hours vs. industry average of 3-5 days.
3. Payments
Payment Types
| Payment Type | Processing Time | Success Metrics |
|---|---|---|
| SEPA Credit Transfer | D+1 (next business day) | STP rate: over 99% |
| SEPA Instant | Under 10 seconds (24/7/365) | Availability: 99.99% |
| Direct Debits | D+2 to D+5 | Return rate: under 1% |
| International (SWIFT) | 1-5 days | STP rate: over 95% |
4. Card Management
Card Lifecycle
| Use Case | Key Features | Success Metrics |
|---|---|---|
| Virtual Cards | Instant issuance, Apple/Google Pay ready, disposable cards | Issuance: under 30 sec |
| Physical Cards | Card design, PIN mailer, express delivery | Delivery: 3-5 days |
| Card Controls | Transaction limits, merchant blocking, geographic controls | Fraud reduction: 40% |
| Dispute Management | In-app filing, investigation workflow, provisional credit | Resolution: under 45 days |
5. Risk Management
Credit Risk Scoring
| Model Type | Use Case | Accuracy Improvement |
|---|---|---|
| Logistic Regression | Baseline scoring, regulatory models | Baseline |
| Decision Trees | Rule-based decisioning, policy limits | +5-10% |
| XGBoost | High-accuracy scoring | +15-20% |
| Neural Networks | Alternative data, behavioral patterns | +20-25% |
Fraud Detection
- Transaction Monitoring: Real-time scoring, behavioral analysis, device fingerprinting
- Account Takeover: Login monitoring, device recognition, behavioral biometrics
- Application Fraud: Identity verification, synthetic ID detection, velocity checks
- Money Mule Detection: Network analysis, transaction patterns, account age
Use Case Prioritization Matrix
For product roadmap planning, prioritize use cases by customer segment:
| Segment | Priority 1 | Priority 2 | Priority 3 |
|---|---|---|---|
| Neobanks | Accounts, Payments, Cards | Savings, Basic Lending | Treasury, Complex Lending |
| SME Lenders | Loan Origination, Credit Scoring | Collections, Servicing | Accounts, Payments |
| Regional Banks | All Retail Banking | Lending, Compliance | Treasury, Analytics |
Implementation Complexity by Use Case
Not all use cases are equal in implementation effort:
| Use Case | Complexity | Dependencies | Regulatory Burden |
|---|---|---|---|
| Current Accounts | Medium | KYC, payments | High (PSD2, AML) |
| Savings Accounts | Low | Interest engine | Medium |
| Personal Loans | High | Credit scoring, collections | High (CCD) |
| Mortgages | Very High | Valuation, legal, insurance | Very High |
| Credit Cards | High | Card processor, fraud | High (PCI-DSS) |
| SEPA Payments | Medium | SEPA gateway | High (PSD2) |
| International Payments | High | SWIFT, FX, sanctions | Very High |
MVP Use Case Recommendations
For fastest time-to-market, start with:
Core: Current accounts, savings accounts, SEPA payments, virtual cards. Timeline: 4-6 months. Regulatory: E-money license or banking license required.
Core: Personal loans, loan origination, credit scoring, collections. Timeline: 3-5 months. Regulatory: Consumer credit license required.
Comprehensive coverage is required. Core banking platforms must support retail, lending, payments, cards, risk management, and compliance—partial coverage limits market addressability.
Prioritize by segment. Neobanks prioritize accounts and payments; lenders prioritize origination and credit scoring. Build your roadmap around target segment needs.
Regulatory requirements are non-negotiable. Every use case has compliance implications. Build regulatory requirements into product design from day one.