Core banking applications refer to the software systems that centralize and streamline various banking processes within a financial institution. These applications serve as the backbone of a bank's operations, managing customer accounts, transactions, and other key functions. Core banking applications automate tasks, improve efficiency, and provide real-time access to critical information for both customers and bank employees. They enable banks to offer a wide range of services such as deposits, loans, payments, and transfers seamlessly. By integrating various banking functions, core banking applications contribute to enhancing customer satisfaction, reducing costs, and improving overall operational effectiveness.