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    Core Banking

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    Priyanka Govalkar
    This document discusses core banking, which refers to banking services that can be accessed from any branch via a network. It describes the levels of computerization in the Indian banking industry, from less computerized old private and public sector banks to fully computerized new private and foreign banks. The stages of computerization in Indian banks are outlined, from partially computerized to fully networked branches. Key aspects of core banking solutions are explained, including how the centralized database allows customers to access services from any branch. Benefits to customers, branches, and banks are provided. Risks associated with centralized systems are also mentioned.

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    Core Banking

    Uploaded by

    Priyanka Govalkar
    1K views12 pages
    This document discusses core banking, which refers to banking services that can be accessed from any branch via a network. It describes the levels of computerization in the Indian banking industry, from less computerized old private and public sector banks to fully computerized new private and foreign banks. The stages of computerization in Indian banks are outlined, from partially computerized to fully networked branches. Key aspects of core banking solutions are explained, including how the centralized database allows customers to access services from any branch. Benefits to customers, branches, and banks are provided. Risks associated with centralized systems are also mentioned.

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    This document discusses core banking, which refers to banking services that can be accessed from any branch via a network. It describes the levels of computerization in the Indian banking industry, from less computerized old private and public sector banks to fully computerized new private and foreign banks. The stages of computerization in Indian banks are outlined, from partially computerized to fully networked branches. Key aspects of core banking solutions are explained, including how the centralized database allows customers to access services from any branch. Benefits to customers, branches, and banks are provided. Risks associated with centralized systems are also mentioned.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1K views12 pages

    Core Banking

    Uploaded by

    Priyanka Govalkar
    This document discusses core banking, which refers to banking services that can be accessed from any branch via a network. It describes the levels of computerization in the Indian banking industry, from less computerized old private and public sector banks to fully computerized new private and foreign banks. The stages of computerization in Indian banks are outlined, from partially computerized to fully networked branches. Key aspects of core banking solutions are explained, including how the centralized database allows customers to access services from any branch. Benefits to customers, branches, and banks are provided. Risks associated with centralized systems are also mentioned.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    CORE BANKING

    PRIYANKA GOVALKAR
    Roll. No: 18
    Meaning
     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.
     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

    Levels of computerization vary

    significantly in the Indian Banking


    Industry. On the one hand centrally
    computerized and fully networked new
    private banks and foreign banks and on
    the other with little computerization in
    old private banks and PSBs are in two
    ends of the spectrum. This situation will
    very soon change and the entire
    banking system in the country will be
    technology driven. This is evident from
    the fact that almost all the banks have
    implemented / are implementing the
    core banking solution and are also
    offering Internet banking services.
    Stages of Computerization
    Major efforts towards computerization in the

    banking industry started almost two decades


    ago. The stages of computerization in the
    banking industry may be classified as below:

    • ALPM branches
    • Partially computerized branches
    • Fully computerized branches
    • Centrally Computerized and Fully Networked
    Banks
    o Banks offering Internet Banking,

    o ATM /banking

    o Off-shore data processing


    How Does CBS Work?
    Core banking solution refers to a common IT

    solution wherein a central shared database


    support the entire banking application. Business
    processes in all the branches of a bank update a
    common database in a central server located at
    Data centre, which gives a consolidated view of
    the bank’s operations. Branches function as
    delivery channels providing services to the
    customers of the bank. Core Banking Solution is
    an integrated application that supports real time,
    multibanking and multi-channel strategies. The
    single biggest achievement of implementing the
    Core Banking Solution is that each customer is
    truly the customer of the Bank and not just the
    customer of the Branch, where his/her account is
    maintained. He/she can go to a branch anywhere
    in the country and perform a transaction. This is
    Key Features of the System
    24X7 Banking
    Anywhere Banking
    Integration with strategic sectors
    Strengthening MIS, DSS and EIS
    Business Process Re-engineering
    (BPR) - enabler
    Components of CBS
    Data centre
    Network connectivity
    CBS application software
    Hardware at branch and data
    centre
    Delivery channels
    Disaster recovery site
    A strong business continuity plan
    Benefits to the branch
     As the back office work is done at a centralized
    location, more time is available to the branch
    officials for activities like product promotion,
    marketing, business expansion and cross selling of
    products.
     Single window service for the varied needs of the
    customers is made available at the branches. This
    enhances customer service at the branch.
     There is a uniform approach to the branch rules /
    operations
     Branches can concentrate on developing business.
     Standardization of IT infrastructure at the branches.
     No End of Day (EOD) / Beginning of Day (BOD) process
    at the branch
     No local server and hence no local backup and other
    administrative chores
    Benefits to customers
     Anywhere / anytime branch banking is
    available to the customers
     As multiple delivery channels are facilitated,
    Internet banking, online access to all ATM
    network, tele-banking facility, bill payment
    facility etc are made available to the
    customers.
     Customer becomes customer of the bank and
    not of the branch
     Improved customer service at the branches
     No need to visit the branch as the multiple
    delivery channels enable the customer to
    transact basic banking even from the
    comfort of her home / office
    Benefits to bank
     Instant availability of consistent and accurate
    data.
     MIS at a central location enhancing the decision
    support for the top
     management.
     There will be effective control and monitoring by
    the top management.
     Data base and processing are centralized leading
    to better monitoring of the business and
    reduction in data cost and transaction cost.
     Faster introduction of customer centric products
    from the central location ensuring uniformity in
    implementation.
     New delivery channels can be integrated easily
     Ease of system administration and thereby
    reduction in support costs.
    Risks of CBS
     All eggs are in a single basket and hence the effect of
    centralized failure will be colossal resulting in reputation
    risk for the bank.
     The dependence on vendors and service providers increases
     Data Integrity and data security have to be ensured all the
    time as the centralized location will be the target of all evil
    eyes.
     To be able to provide a reasonable level of comfort in this
    aspect, the security program of the banks will have to be
    dynamic and alive to the imponderables.
     Acceptance by the staff and changing their mind set to
    accept technology and a role shift will be a very big
    challenge for managements.


     As the benefits outweigh the risks and as other major private
    sector banks started off from this platform coupled with
    competitive pressures and heightened customer expectations
    are forcing all banks today to adopt CBS technology in a big
    THANK YOU

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