CBS In Banking: Today banking as a business has grown tremendously and it is the networking of various bank branches through a strong IT infrastructure. It allows customers to operate their bank accounts and avail banking services with a centralized network. And it has transformed from a mere deposit-taking and lending system to an institution that provides a complete range of products and services under one broad umbrella. All such activities performed by the bank are called core banking. As per the pure definition, core banking refers to a centralized system set up by a bank that allows its customers to conduct their business irrespective of the branch of the bank. Thus, it removes the hassles of geo-specific transactions. In fact, CORE is an acronym for “centralized online real-time exchange”, which is how bank branches can access applications from centralized data centers. Apart from retail banking customers, core banking is also now being expanded to meet the requirements of corporate customers and provide comprehensive banking solutions.
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CBS A brief history about
Until the 1970s, it took at least a day for a transaction to be reflected in bank accounts. This was because each bank had its own local server and the transaction data for each day was collected and sent in a batch at the same time.
In 1984, an initiative was taken regarding CBS with the ‘First Rangarajan Committee Report’, which highlighted the importance of banking computerization. Although many banks were initially reluctant to adopt software solutions, by 1994–1996 most of these had moved to CBS services.
Core banking solutions provide the following benefits to the bank
Improved operations that address customer demands and industry consolidation
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Easy ability to introduce new financial products and manage changes to existing products
Seamless merging of back office data and self service operations.
Minimum Features of Core Banking Solutions
to establish.
Customer-on-boarding.
accounting management
transaction management
interest. calculation and management.
Loan disbursement and management.
Management of deposits and withdrawals.
Designing new banking products.
Customer Relationship Management (CRM) activities.
Criteria for minimum balance, rate of interest, number of withdrawals allowed etc.
Payment Processing (Cash, Cheque/Cheque, Mandate, NEFT, RTGS etc.).
Why is CBS important for banks?
Minimize the time taken for banking transactions.
Meet the increasing demands of your customers.
Simplify and accelerate basic banking processes so that banking employees can focus on other areas like upselling and cross-selling, marketing etc.
Making banking services more accessible and convenient for customers
Which are the CBS Top Software Provider Companies?
Wipro Core-Banking
SAP Banking & Financial Services
oracle flexcube core banking
EdgeVerveFinnacle by Infosys Technologies Ltd.
Canopus AppSuite by Canopus Innovative Technologies
TCS FNS (Financial Network Services Limited) by TCS.
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