Core banking solution (cbs)

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.
 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.
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 Summarizing it, 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 Bank’s
Customer. Thus CBS is a step towards enhancing customer convenience through
Anywhere and Anytime Banking.
 FACILITIES AVAILED FROM CBS
BRANCHES
 To make enquiries about the balance; debit or credit entries in the account.
 To obtain cash payment out of an account by tendering a cheque.
 To deposit a cheque for credit into an account.
 To deposit cash into an 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 one account to some other account – provided both accounts
are in CBS branches.
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 To obtain Demand Drafts or Banker’s Cheques from any branch on CBS – amount
shall be online debited to the account.
 Customers can continue to use ATMs and other Delivery Channels, which are also
interfaced with CBS platform.
 In short, The customer need not operate only though his home branch but can go to
the nearest branch for banking services. He or she is no longer a customer of a
branch but a customer of the bank.
BANKS ON THE CBS PLATFORM
 All private and foreign banks are on the CBS platform.
 Among the State-owned banks, SBI and its associate banks, Punjab
National Bank, Bank of India, Bank of Baroda, Union Bank of India,
Corporation Bank, Andhra Bank, Oriental Bank of Commerce and Indian
Bank are on this platform.
 CASE STUDY OF CBS
IMPLEMENTATION IN BANK OF
BARODA
 Bank of Baroda (BOB), India’s fifth largest bank and prominent among the global
top 200, with assets in excess of USD 32 billion, has a network of over 2800
branches and offices, and about 700 ATMs.
 It offers a wide range of banking products and financial services to 29 million
global corporate and retail customers, in the areas of investment banking, credit
cards and asset management.
 With growing base of clientele, Bank of Baroda felt the need for automation and
technology focused business transformation program. This made a platform for
core banking solutions (CBS) which was partnered by Finacle package whose
provider is Infosys.
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 Finacle implementation has played a pivotal role in the rapid introduction of an
exhaustive product lines and robust retail portfolios for Bank of Baroda . This has
helped Bank of Baroda respond to new opportunities presented by rapidly evolving
customer segments, globally, and create entirely new customer experiences too. An
activity that consumed weeks is now complete within minutes!
 A fully operational bank, powered by Finacle, was up and running in 19 days flat!
SUMMARY
 A technology platform, with a rich palette of features is a
pre-requisite for a bank to thrive in this flattening world.

 Banks with the vision to harness their technology strategy to

drive their business goals will be the ones with the power to
respond to changing business dynamics in the flat world.
THANK
YOU…