Banking · Core Banking Solutions Architecture

Statement 1: In the operational environment of a Core Banking Solution, the Application Server is responsible for hosting the business logic and processing rules of the banking software, such as calculating interest rates, validating transaction limits, and ensuring that the accounting entries follow the double-entry bookkeeping system before they are sent to the database. Statement 2: The Database Server acts as the central repository where all customer records, transaction logs, and master data are stored, and it is optimized for high-speed retrieval and storage of data while ensuring ACID (Atomicity, Consistency, Isolation, Durability) properties for every single financial transaction. Statement 3: The Web Server or Front-end Server provides the user interface through which bank employees and customers interact with the system, and it is responsible for encrypting the data using Secure Socket Layer (SSL) or Transport Layer Security (TLS) protocols to ensure that sensitive information is not intercepted during transmission over the network. Choose the correct option after analyzing the technical accuracy of these statements in a three-tier CBS architecture: