CORE BANKING UNION BANK OF INDIA

CONTENTS 1. INTRODUCTION 2. WHAT IS CORE BANKING 3. C.O.R.E BANKING SOLUTIONS 4. CORE BANKING IN INDIA 5. CORE BANKING TECHNOLOGY PROVIDERS 6. CORE BANKING IN UNION BANK AND SERVICES 7. BIBLIOGRAPHY 8. CONCLUSION

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Introduction

Type Industry

Public Financial Commercial banks

Headquarters Mumbai, India Key people Revenue Mavila Vishwanathan Nair (Chair) 15,277.42 crore (US$3.32 billion)[1] USD 0.16 billion 25,630 www.unionbankofindia.co.in

Net income Employees Website

Union Bank of India (UBI) is one of India's largest state-owned banks (the government owns 55.43% of its share capital), is listed on the Forbes 2000. It has assets of USD 13.45 billion and all the bank's branches have been networked with its 1135 ATMs. Its online Telebanking facility are available to all its Core Banking Customers - individual as well as corporate. It has representative offices in Abu Dhabi, United Arab Emirates, and Shanghai, Peoples Republic of China, and a branch in Hong Kong.
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What is core banking?

Banking the Customers way is called core banking. Core banking is a general term used to describe the services provided by a group of networked bank branches. Bank customers may access their funds and other simple transactions from any of the member branch offices. Many banks treat the retail customers as their core banking customers, and have a separate line of business to manage small businesses. Larger businesses are managed via the Corporate Banking division of the institution. Core banking basically is depositing and lending of money. Nowadays, most banks use core banking applications to support their operations where CORE stands for "Centralized Online Real-time Exchange".

This basically means that all the bank's branches access applications from centralized data centers. This means that the deposits made are reflected immediately on the bank's servers and the customer can withdraw the deposited money from any of the bank's branches throughout the world. These applications now also have the capability to address the needs of corporate customers, providing a comprehensive banking solution. Core Banking is the meeting point of the largest banking services segment namely Retail and Commercial Banking, cutting edge Information Technology and the ever advancing Communication Technology. It is the heart of a modern financial service organization and is all about providing the banking customers with the right products at the right time through the right channels 24 hours a day, 7 days a week through a multi location, multi branch network.

Normal core banking functions will include deposit accounts, loans, mortgages and payments. Banks make these services available across multiple channels like ATMs, Internet banking, and branches.

Core Banking:
The reason for calling it Core Banking System, after deployment, is the hart or the Core of the Bank / financial institution. All entities that form part of the eco-system of the bank / financial institution interact with. The entities are; * Bank employees head office, regional offices, branches etc * Bank Management: executives / managers at respective locations head office, regional offices branches etc * Bank customers: Personal banking, corporate banking international banking etc. * Bank Auditors, internal and external auditors who need to verify systems and procedures. * Bank Regulators: mandatory reporting to central bank and other financial bodies. * Bank share holders: providing the desired return to shareholders from banking operations. For a bank / financial institutions the Core Banking system must address the Core Business of deposits and loans and the same time, address the work place needs of all above entitles at their respective locations. Ingredients: There are 5 ingredients that form part of the Core Banking system. These are the essential building blocks for the entire bank / institution.

General Ledger:
The absolute Core is the General Ledger of the bank accordingly. The G.L. system is which generates the financial statements for the entire bank and provides any entity to monitor the financial health of the bank. In a Core Banking System, this is achieved by deploying a centralized G.L. System which provides for thousands of sub legers with. Level's start with individual branch G.L. rolled up to regional G.L. with further rollup of all regional G.L's to bank.

Customer Information System:

The next major ingredient of a Core Banking system is the Customer Information System or CIS. A customer is identified by uniquely by his / her CIS number and all information related to that customer (name, address, phones, employment, credit history, relatives, family members, and demographic data) is stored along with this unique number. All this is stored in a centralized CIS system allowing the customer to visit any branch to do business with the bank.

Deposit System:
The third major ingredient is the deposit system. The ability to process various types of deposits is a must. These include current, savings, time deposit and hundreds of variations in each of these. e.g. Simple current accounts, current accounts with overdraft, cash credit accounts, variable rate overdrafts, simple savings, multi-currency savings, time deposits, CDS, variable rate time deposit, recurring deposits, multi-currency, time deposits, and so on. This is required to handle the liability side of the bank business.

Loan System:
The fourth major ingredient is the loan system. This system handles the asset side of this business. The loan process in a bank involves multiple stems. The loan appraisal and sanction step, the disbursement and monitoring step, the non-performance tracking step the recovery step and the closure. With authorized access, any staff working in any branch around the country should be able to retrieve the customer loan information on his terminal and help the customer do a financial transaction. These financial transactions are automatically sent to the bank General Ledger and they update the appropriate credits and debits in the subsidiary ledgers in the General Ledger.

Management Information System (MIS):

Once the core deposit and loan business transaction for all customers of the bank are captured and appropriate General Ledger accounts are updated, various users of the Core Banking System throughout the bank need to know what is happening within the entire financial institution. As a result, the fifth major ingredient is the management information system. This enables everybody in the bank to obtain the relevant information from the system in order to carry out their business effectively. MIS is simple terms takes information from the General Ledger, CIS Deposit, Loan Systems and present them to the bank.

New Components:
Besides the 5 major ingredients, there are optional components (like a car with options like leather seats, flashing light etc) that can be added on to the Core Banking Systems to help the bank staff uses them in a more efficient manner, these include:

Delivery Channels:
All the 5 major ingredients of a Core Banking system can be operated by a bank staff from any location in the country simple by using their terminal at their workplace. Banks have started focusing on customer relationship management, Customers can go to the branch, go to an ATM, call on the phone, and log on to the Internet to do their banking transactions. They can use one or more of these delivery channels (Called customer touch paints) to conduct segment and decide on further investment design specific products and services to promote such delivery channels.

* Branch Automation system * ATM Switch and connected ATM * Call center system * Internet Banking System Any transaction done by the customers in any of the above systems goes and updates the Core Banking System like deposit or loan at that in turn updates the Bank's G.L. in the Core.

What ingredients are not included in Core Banking?

Typically these systems are confined to a specific business department within the bank. They are not Core because they do not affect all areas and entities of the bank. * Trade finance * Treasure * Credit Card * Mutual Funds * Stocks, Bonds * External System * Payment gateways * SWIFT * Shared ATM network * World Wide credit card networks, maestro, electron etc * World wide ATM networks plus, Cirrus etc and possibly other systems that the bank may want to deploy in specific departments

C.O.R.E. Banking Solutions

What is Core Banking Solution ?

Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The customer is no more the customer of a Branch. He becomes the Banks Customer. Thus CBS is a step towards enhancing customer convenience through Anywhere and Anytime Banking.

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How shall CBS help Customers?

All CBS branches are inter-connected with each other. Therefore, Customers of CBS branches can avail various banking facilities from any other CBS branch located any where in the world. These services* are:

To make enquiries about the balance; debit or credit entries in the account. To obtain cash payment out of his account by tendering a cheque. To deposit a cheque for credit into his account. To deposit cash into the account. To deposit cheques / cash into account of some other person who has account in a CBS branch. To get statement of account. To transfer funds from his account to some other account his own or of third party, provided both accounts are in CBS branches. To obtain Demand Drafts or Bankers Cheques from any branch on CBS amount shall be online debited to his account. Customers can continue to use ATMs and other Delivery Channels, which are also interfaced with CBS platform. Similarly, facilities like Bill Payment, I-Bob, M-bob etc. shall also continue to be available. Bank is in the process of launching Internet-banking facility shortly.

All these aim to provide convenient, efficient, and high quality banking experience to the customers, comparable to world class standards.

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What are other benefits to the Customers ?

A CBS branch is like a Sales & Service Delivery Center. Back office processes/activities are handled through technology at some other site, called Data Center. Branch, therefore, has more time for serving customers. This improves the quality and efficiency of the services rendered and the customer is directly benefited by way of satisfying and happy banking experience. Since a CBS branch is essentially designed to focus on customer-interface and customer service, the special lay-out and ambience of the branch is made to provide a convenient and delightful banking experience. The Customer Service Representatives / Executives at the branch are specially trained to understand, facilitate and deliver banking services efficiently and effectively. We wish our customers happy banking. Core banking solutions are banking applications on a platform enabling a phased, strategic approach that is intended to allow banks to improve operations, reduce costs, and be prepared for growth. Implementing a modular, component-based enterprise solution facilitates integration with a bank's existing technologies. An overall service-oriented-architecture (SOA) helps banks reduce the risk that can result from manual data entry and out-of-date information, increases management information and review, and avoids the potential disruption to business caused by replacing entire systems. The advancement in technology, especially internet and information technology has led to new ways of doing business in banking. These technologies have cut down time, working simultaneously on different issues and increasing efficiency.

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The platform where communication technology and information technology are merged to suit core needs of banking is known as Core Banking Solutions. Here, computer software is developed to perform core operations of banking like recording of transactions, passbook maintenance, interest calculations on loans and deposits, customer records, balance of payments and withdrawal. This software is installed at different branches of bank and then interconnected by means of communication lines like telephones, satellite, internet etc. It allows the user (customers) to operate accounts from any branch if it has installed core banking solutions. This new platform has changed the way banks are working. Gartner defines a core banking system as a back-end system that processes daily banking transactions, and posts updates to accounts and other financial records.

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CORE BANKING IN INDIA

The major objectives of bank automation are better customer service, flawless book keeping and prompt decision-making that leads to improved productivity and profitability. The concept of bank automation started in the year 1981, but it was during the period 1984-1987 banks in India started the branch level automation, making use of the then available MSDOS based stand alone computers. This initiative was taken by the banks on the basis of First Rangarajan Committee report on bank computerisation submitted in the year 1984. ALPMs (Advanced Ledger Posting Machines) were the fashion in those days. However, the pace of bank automation was very slow in the banks primarily owing to the lack of trade union consensus on bank automation. Another committee was constituted in 1988 under the chairmanship of Dr. C Rangarajan, the then Deputy Governor of RBI to slate down a perspective plan on automation of banks for a five year period. This paved way to the implementation of multi-user Total Branch Automation packages running on a LAN (Local Area Network), either on a Netware or a UNIX operating system. With the implementation of TBA, banks started to offer the facilities of exclusive Customer Terminal, Single window transaction, online and off-site ATMs, Tele-Banking etc. But with the advent of new generation private sector banks in India during 1994-1996, the real era of bank marketing started and these banks started to offer any where and any time banking facilities to its customers. This was possible for them mainly owing to the fact that they opted for the implementation of a WAN (Wide Area Network) based centralised banking solution rather than a LAN based branch banking solution to network their limited number of branch outlets. The old generation banks in India hesitated to follow this banking fashion on account of its large network of branches on one hand and the then prevailing exorbitant IT cost on the other hand. But with the globalisation and liberalisation of Indian market and with the enactment of TRAI (with a mission to create and nurture conditions for growth of telecommunications
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in the country in a manner and at a pace which will enable India to play a leading role in emerging global information society) during the late nineties, there happened a drastic reduction in IT cost. Improved telecommunication facilities and reduction in hardware as well as networking cost changed the mind set of the banks in India to try the CBS option. This also equipped them with the required technology leverage to compete in the Indian market by offering the similar technology products and services, as those offered by their new generation competitors.

Core Banking and Run the Bank are synonymous for most part. Core Banking is the meeting point of the largest banking services segment namely Retail and Commercial Banking, cutting edge Information Technology and the ever advancing Communication Technology. It is the heart of a modern financial service organization and is all about providing the banking customers with the right products at the right time through the right channels 24 hours a day, 7 days a week through a multi location, multi branch network.

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CORE BANKING TECHNOLOGY PROVIDERS

Any technology platform which is positioned to support core banking operations, needs to address a set of mission-critical criteria, including: Reliability Scalability Availability Manageability Security There are many service providers for banks these days which build technologies and softwares for banks to perform tech banking. Below is a table of these such service providers. Overview of Core Banking Solutions and their providers Package Avaloq Banking System BankFusion Universal Banking Misys Equation Misys Midas Plus Finacle Loan CFT-Bank Lending Solutions Alnova Financial Solutions COBIS (Cooperative Open Banking Information System) Avaloq Group Misys Misys Misys Infosys FERNBACH Software Center of Financial Technologies (CFT) Indus, a business unit of R Systems International Ltd. Accenture / Alnova COBISCORP Provider

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TCS BaNCS Bankway Corebank SAP Transactional Banking FLEXCUBE Hogan Insite Banking System Intellect Core ICBA Profile (software) (formerly Sanchez Profile) SAB / SAMIC Signature (software) Systematics TEMENOS T24 CoreSoft, SuVikas

Tata Consultancy Services (TCS) Fidelity National Information Services (FIS) Fidelity National Information Services (FIS) SAP AG Oracle Financial Services Software Computer Sciences Corporation Automated Systems, Inc. Polaris Software Lab Limited Infopro Sdn Bhd Fidelity National Information Services (FIS) SAB Fiserv Fidelity National Information Services (FIS) (formerly Systematics, Inc/ Alltel) Temenos Group VSoft Corporation

There are different solutions for large and small scale banks. In this project we are going to explore both with the HCL, Infosys and Tata Consultancy being the service providers.

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HCL
HCLs expertise in core banking encompasses the whole gamut of functionality, be it single customer view, checking accounts, back office transaction processing for lending, funds transfer, risk, regulatory reporting, collection monitoring or any other niche/ generic trait.

Services
HCLs core banking team has successfully accomplished a number of large project assignments for global banking majors in varied areas like application development, development of online and batch interfaces to other landscaped applications and their seamless integration into the overall application firmament. With a proven track record in application interfacing / integration with plethora of upstream and downstream applications HCLs end-to-end services encompass design, development, testing and test automation and also provide application enhancement and crucial maintenance support. Apart from these service offerings, the experienced techno-banking team of HCL also provides high end solution consultancy for core banking with an underlying capability to create and service the financial products required by varied targeted customer categories. These are in the spaces of application migration, data conversion and big bang as well as phased implementation focusing on modular business coverage, to name a few. Such initiatives harness the entire banking domain and technological expertise of the entire HCL team - a team with a proven track record in delivering quality performance and services with aggressive timelines, across multiple streams running in parallel, often creating from scratch the environments for development and implementation.

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Partnerships
HCLs partnership with leading Core Banking vendors like SAP, Oracle and Misys is leveraged to provide intricate product customization and multilayered implementation initiatives across the world for leading banks. HCLs development partnership with SAP is a stellar example of such grand alliances. This partnership focuses among other things, on global core banking product development initiatives in India, USA and China which encompass Governance, Risk and Compliance too. This ever expanding partnership will soon cover other niche areas like value engineering, sharing best practices at both sides. Under Oracles Partner Program, HCL is recognized at the highest level of partnership i.e. the Certified Advantage Partner. HCL has been an Oracle implementation partner since 1998. HCLs Oracle Practice is an integrated services group, providing technology-based business optimization on Oracle Enterprise software products and on Oracle Technology Platforms for a large number of Oracle products in areas including core banking, beside Data Warehousing, Business Intelligence, Fusion Middleware and Oracle Database. HCLs Oracle Lab is a joint endeavor by both companies to develop vertical centric, pre-configured solutions and provide product demonstrations to global clientele.

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HCLs partnership with Misys commenced in 2007.

The scope of partnership includes implementation of various Misys products in Core Banking, Commercial & Corporate Banking as well as Capital Market Services. The partnership concentrates on product enhancements and implementations in Asia Pacific and Australia geographies with blueprints being drawn to extend the coverage both geography and product-wise. Axon, the newly acquired SAP consulting wing of HCL brings new capabilities to the market with a truly global delivery model providing full lifecycle suite of services with unique value propositions.

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FINACLE FROM INFOSYS

Finacle core banking solution is a comprehensive, integrated yet modular business solution that effectively addresses the strategic and day-to-day challenges faced by banks. It is highly parameterizable providing that much-needed flexibility to innovate and adapt to a dynamic environment. The solution has an integrated CRM module enabling banks to offer a rich and differentiated value proposition to customers. The layered Service Oriented Architecture (SOA), STP capabilities, Web-enabled technology and 24X7 operations ensure multi-channel, multi-country and multi-currency implementations. The functionality-rich modules in the solution provide banks with a varied palette of features to continuously innovate on their product and service offerings. From the services innovation perspective, Finacle offers a comprehensive and unified customer repository with capabilities to educate and empower customers. With Finacle core banking solution, banks can meet the challenges of managing change, competition, compliance and customer demands effectively.

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Key Modules

Enterprise Customer Information Consumer Banking Wealth Management Corporate Banking Trade Finance Islamic Banking Functional Services Reusable Business Components Accounting Backbone Infrastructure

Business Benefits
Differentiated Product Spread Finacle core banking solution offers an unlimited palette of features for banks to design and deploy products for varying market segments. The product bundling capabilities of the solution offer a wide range of possibilities for banks to create products with innovative features. The facilities provided for differential pricing, channel rules and customization through Finacle Studio the scripting engine, empower banks to continuously innovate and extend their suite of products, across segments.

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Agile Operations
The Service Oriented Architecture (SOA) enables the IT team at the bank to effect changes without touching the base code, ensuring lesser vendor dependency and faster adaptability to changing business conditions.

Robust Cross-sell Framework

The CIF and CRM capabilities in Finacle offer a unified view of the customer across the entire solution and across multiple back-end applications, enabling the bank to view the customer from a completely informed angle. This empowers banks to effectively manage customer relationships and aggressively explore cross-sell opportunities. Increased Operational Efficiencies and Productivity Finacle core banking solution supports business event automation and process orchestration, thus eliminating manual tasks and reducing process time. The elimination of error and data redundancies also results in increased branch productivity. Straight Through Processing (STP) abilities enhance reduction in turnaround and processing time, increasing output and enabling speedy completion of tasks.

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CORE BANKING IN UNION BANK OF INDIA

The Union Bank of India was built up in twentieth century and declared open by the Father of the Nation, Mahatama Gandhi. The bank with its efficient value-added services, sustained growth, consistent profitability and development of new technologies bank has ensured complete customer delight, living up to its image of, GOOD PEOPLE TO BANK WITH. Bank is offering credit cards, home loan, union Demat, Kisan ATM, International debit card, online tax payment facility, Railway e-ticketing kiosk, etc., services to its customers through core banking solution. The Union Bank of India has 2261 branches out which 1031 branches are under CBS. Presently 939 ATMs spread out across India both Onsite and Offsite. All the ATMs are inter-connected through the Banks ATM Switch, thus facilitating on-line operations in case of CBS customers. The Bank is a member of Cash Tree consortium and also has bilateral arrangement with State Bank of India, enabling the Banks ATM cardholder access to over 20000 ATMs across the country. UBI Net connects 65 Offices and 984 branches located in 323 centers, facilitating speedier transmission of MIS data (Network Map). The network also facilitates the implementation of Core Banking Solution, apart from DEMAT services, Cash Management services, fund transfers, messaging system, etc. The Bank is using VSAT network for connecting branches and ATMs wherever leased line connectivity is not feasible. We have 590 VSATs operational, connecting 194 branches/extension counters and 316 ATMs. Adjust, Adapt and Change. That is the message that technology has sent across to modern day banking. As technology ingrains itself in all aspects of a Banks functioning, the challenge lies in getting adequate returns from these investments in technology.

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TECHNOLOGY
Union Bank of India has accepted this challenge and has positioned itself to opportunities that technology has thrown open. The opening up of the economy together with near total decontrol from the regulatory authorities has added impetus to our efforts. The transition from traditional banking to technology banking has already begun and a number of technology projects are under way and also envisaged for the future. The present and proposed IT initiatives of the Bank encompasses the following: All the 2531 branches of the Bank are now under CBS. Leveraging on the CBS infrastructure Bank has centralized back office operations including clearing, account opening, statement generations etc. in over 30 centres This level of computerization has been possible because of the concerted efforts of 55 Regional Computer Cells. As the branches are far spread out the benefits of technology have now truly percolated to rural and semi urban areas also. Forex operations are fully computerized at all 69 Authorized Dealing branches. This facilitates submission of various statutory returns minimizing the chances of default besides ensuring proper monitoring of international operations. The Bank has set up a strong ATM network to extend the reach of banking services to the esteemed customers. Presently over 1200 ATMs spread out across India both Onsite and Offsite. All the ATMs are inter-connected through the Banks ATM Switch, thus facilitating on-line operations in case of CBS customers. The Bank is a member of Cash Tree and NFS consortium and also has bilateral arrangement with State Bank Of India, enabling the Banks ATM cardholder access to over 20000 ATMs across the country. The Bank is issuing International Debit cards under Visa tie-up, thus offering global reach to its customers. All the ATMs of the Bank also accept Visa transactions.

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Internet banking services of the Bank offers variety of features to make the Banking a pleasure. Some of the services offered online are single view of all the accounts, balance enquiry, account statement, transaction history, transfer of funds to self as well as third party accounts, request for cheque book, request for pay order/ DD etc. Apart from the regular banking services as above, Internet Banking also provides other value added services such as online ticketing of air & rail, online tax payment, online trading of shares, online bill payments, online Demat information, online LC opening etc. Telebanking has been introduced at 19 important centers for customers of CBS branches where facilities like balance enquiry, statement over fax, last five transactions etc. are available. Bank has also introduced SMS banking services and is providing both Pull and Push services. Customers are now able to get alerts for all transactions happening in their account.

The service branches in about 40 locations fully computerized and networked to our WAN facilitating fast electronic transmission of data. Activities like clearing, account opening and statement printing etc. have been centralized at these centers. This has greatly speeded up realization of collection instruments and availability of float funds. The Banks Payment Systems Gateway is in place with all the requirements that RBI has stipulated and PDO-NDS is operational from the Payment Gateway. The Bank has extended RTGS and NEFT facility to all CBS branches. The Banks Payment Systems Gateway is in place with all the requirements that RBI has stipulated and PDO-NDS is operational from the Payment Gateway. The Bank has extended RTGS facility to all CBS branches. The Bank is also fully geared up for launch of SFMS at selected branches.

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UBI Net connects all the Offices and branches of bank located in 2500+ centres, facilitating speedier transmission of MIS data (Network Map). The network also facilitates the implementation of Core Banking Solution, apart from DEMAT services, Cash Management services, fund transfers, messaging system, etc.

The Bank is using VSAT network for connecting branches and ATMs wherever leased line connectivity is not feasible. We have over 1000 VSATs operational, connecting CBS branches/extension counters and ATMs. Voice over IP between Administrative offices, Instant file/ Data transfer and corporate E-Mail, LAN is installed in all the administrative offices and important CBS branches. Swift facility is available at 69 centers enabling faster transmission of messages pertaining to international financial/non-financial transactions.

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CORE BANKING
Union Bank Of India has successfully implemented Core Banking Solution as a part of Long term IT strategy. The Bank has already rolled out all its branches covering over 100% of business under CBS. CBS system supports all retail and corporate banking activities including ATMs, Internet Banking, SMS Banking and Telebanking. Core Banking Solution has enabled customers to do trouble-free transaction and it is boon to customers as they are able to do 'Any Time, Any Where, Any Mode' banking. CBS has provided customers with best of Bank's products and accuracy in data transaction. This will enable Bank to give faster delivery of services across multiple channels of servers. Customers can use any of the channels available viz., branches, kiosks, ATMs, Telephone Banking, Internet Banking for their banking needs.The Bank's management information systems have now become enabled with the Core Banking System in place since the data now ends centrally. Business intelligence tools are able to analyze the data for decision support in a faster & more accurate manner. CBS will provide the customers a single view of their accounts on a real time basis. One of the biggest challenges for Finacle was ensuring straight through processing (STP) of most of the financial transactions. With the UNION BANK OF INDIA group having several companies under its umbrella, Finacle needed to seamlessly integrate with multiple applications such as credit cards, mutual funds, brokerage, call center and data warehousing systems. Another key challenge was managing transaction volumes. UNION BANK OF INDIA Bank underwent a phase of organic and inorganic growth, first by acquiring Bank of Madura followed by a reverse merger of the bank with its parent organization, UNION BANK OF INDIA Limited. The scalable and open systems based architecture, enabled Finacle to successfully manage the resultant increase in transaction levels from 400,000 transactions a day in 2000 to nearly 2.1 million by 2005 with an associated growth in peak volumes by 5.5 times. With Finacle, the bank currently has the ability to process 0.27 million cheques per day and manage 7000 concurrent users.
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Over the years, the strategic partnership between UNION BANK OF INDIA Bank and Infosys that started in 1994 has grown stronger and the close collaboration has resulted in many innovations. For instance, in 1997, it was the first bank in India to offer Internet banking with Finacles ebanking solution and established itself as a leader in the Internet and eCommerce space. The bank followed it up with offering several eCommerce services like Bill Payments, Funds Transfers and Corporate Banking over the net. The internet is a critical element of UNION BANK OF INDIA Banks award winning multi-channel strategy that is one of the main engines of growth for the bank. Between 2000 and 2004, the bank has been able to successfully move over 70 percent of routine banking transactions from the branch to the other delivery channels, thus increasing overall efficiency. Currently, only 25 percent of all transactions take place through branches and 75 percent through other delivery channels. This reduction in routine transactions through the branch has enabled UNION BANK OF INDIA Bank to aggressively use its branch network as customer acquisition units. On an average, UNION BANK OF INDIA Bank adds 300,000 customers a month, which is among the highest in the world.

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Channels Branches ATM's Internet & Mobile Call Centers

Share of Transactions March 2000 94 % 3% 2% 1%

Share of Transactions March 2004 25 % 43 % 21 % 11 %

Reaping The Benefits A powerful, scalable and flexible technology platform is essential for banks to manage growth and compete successfully. And Finacle provides just the right platform to UNION BANK OF INDIA Bank thus fueling its growth. The bank has successfully leveraged the power of Finacle and has deployed the solution in the areas of core banking, consumer e-banking, corporate ebanking and CRM. With Finacle, UNION BANK OF INDIA Bank has also gained the flexibility to easily develop new products targeted at specific segments such as UNION BANK OF INDIA Bank Young Stars- a product targeting children.

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UNION BANK OF INDIA Bank is today recognized as a clear leader in the region and has won numerous accolades worldwide for its technologydriven initiatives. In 2003, the bank received the best multi-channel strategy award from The Banker magazine and this year it was rated as the 2nd best retail bank in Asia by The Asian Banker Journal. The bank has effectively used technology as a strategic differentiator, thus not only redefining the rules of banking in India, but also showcasing how technology can help in transforming a banks business. Union Bank Of India Online Services are available through the Internet. Internet Banking is the facility which allows the customer to do banking Transactions Through The Internet. Union Bank Of India Online Banking offers a convenient way of banking to the customers and his banking needs can be sourced without him physically visiting any of the branches, some times right at his business place, residence, market or even while traveling. Union Bank Of India Online Service is available to the customers of Core Banking Branches of the Bank.

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Services offered through Union Bank Of India Online Banking are:

Account Information : The user can get the information of the operative accounts, deposit accounts, loan accounts and all other accounts.

Transfer Of Funds : Under this option the user gets the facility to transfer funds between different accounts.

Bills : This option is meant to facilitate payment of bills.

Requests : A variety of request options are available to the user under this module. All the requests are to be attended end to end by the Relationship Manager of the branch.

Mails : Every user of Union e-banking Retail service is linked to a Relationship Manager who looks into the mails and requests made by the user. For this purpose the user is provided with a mail option, which he can use for communicating with the Relationship Manager.

Trade : The trade module gives query on status and history.

Limits : The limit module enables the corporate to query upon the various limits sanctioned to it by the Bank. The corporate also gets the status of utilization against each of these limits both in rupee terms and in percentage terms.
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Currency : All the transaction options available in Union e-Banking corporate module of Internet baking are in Indian rupee INR only.

Uploads : The Union e-Banking corporate allows bulk upload of both debits and credits type of transactions. The corporates can use this facility for salary disbursements, dealer credits and dealer debits where the debits and credits are intended to several accounts at a time.

Customization : This option enables the user to customize the Internet Banking options

Activity : The option enables the user to query on his own activities

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Bibliography

1)http://www.hcltech.com/financial-services 2)http://en.wikipedia.org/wiki/Core_banking 3)http://www.capgemini.com/services-and-solutions/byindustry/financial-services/solutions/banking/core_banking/corebanking-system-services/

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Conclusion
In todays time where every minute gone by is money spent people need banking services that are instant and every where. Core banking simply means technology driven banking which maked life simple. Core banking makes banking convenient.

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