Wednesday, February 18, 2015

Core Banking Solution (CBS)

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Before the advent of advanced technologies and IT, customers were treated as customer of branch of a bank, meaning details of customers were retained within the branch, and the services provided to the customers were branch-centered. To avail services from other branch, it needed to transfer the details of customers from the base branch to other branches manually, which could take much time.

But nowadays, customers are no more branch customers, they are treated as bank's customers, meaning dependency on bank branch is much reduced, and the customer can avail all his services from any branch of the bank. Details about customer are stored in a centralized manner, from where branches have equal access.

Core Banking Solution (CBS)
CBS provides a centralized environment, in which the information of the customer's account is stored in the central server of the bank, and is available to all the CBS networked branches, instead of the branch server.

It has several advantages for both the customers and the banks -

Customers -

  • Transaction from any branch, (anytime anywhere banking facility)
  • Better funds management, due to immediate availability of funds, etc.
Banks -
  • Standardization of process within the bank
  • Better customer service leading to retention of customer
  • Instant reflection of transactions that can be viewed from any branch
  • Better risk management (e.g., loans against same property or mortgage can be checked), etc.

CBS Softwares
  • Finacle (by Infosys)
  • TCS BaNCS (by Tata Consultancy Services (TCS))
  • HCL BancMate (by HCL Infosystems)
  • FinnOne (by Nucleus Software), etc.
The full form of 'CORE' in Core Banking Solutions (CBS) is often termed as -
Centralized Online Real-Time Exchange.

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