FINACLE

CORE BANKING
SOLUTION

By:

Kartheek Govindarajalu (P301313CMG438)

Saurav Mitra (P301313CMG472)
Sowmya Mendu (P301313CMG476)
INTRODUCTON

Banks have been investing substantially in technology and solutions that enables
them in enhancing customer satisfaction, providing comprehensive business
functionality and meeting regulatory requirements. Core banking is one such
innovative solution and is one of the greatest developments in banking industry.

CORE BANKING SOLUTION

A core banking solution provides a centralized IT platform for processing the
fundamental elements in banking such as maintenance of customer information
data, accounting and transaction processing functions.

FINACLE
Finacle core banking solution is a comprehensive, agile, componentized yet
integrated business solution, addressing all the core needs of banks, in easy-to
configure modules. Finacle provides all the building blocks of business functionality
enabling users to configure products and processes flexibly in order to adapt to a
dynamic environment.

A comprehensive, integrated yet modular agile business solution

Addresses all the core needs of the bank, in easy-to-configure modules
Multi entity capabilities to support multiple legal entities, across various
geographies, currencies and time zones on a single instance of application
Easy to configure modules and components

Finacle is used in 84 countries with over 450+ installations, powering 50,000

branches, 360 million customers & 447 million accounts globally. Few banks that
use Finacle core banking are shown below.

FUNCTIONAL ARCHITECTURE

KEY FINACLE MODULES

1. Enterprise Customer Information: Finacle enables banks to create and

maintain a single source of customer truth enterprise customer information
files, across multiple host systems including Finacle. This helps manage the
various lifecycle stages in a relationship with the customer and access
comprehensive segmentation information, all through a unified view. Flexible
and user definable templates support KYC and AML compliance mandates.
2. Consumer banking: As consumers ask for new products, banks can
leverage the flexible product definition capabilities of Finacle to create new
offerings and target campaigns exactly where they are most relevant. Each
product can be associated with a wide range of properties and then bundled
meaningfully based on customer input.
3. Corporate Banking: Finacle maintains the corporate customer information
files, corporate deposits, commercial lending, corporate origination and
corporate payments with comprehensive liquidity management, sweeps and
pool facilities. Its multicurrency enabled centralized limits and collateral
function lets banks monitor both collateralized lending and online exposure.
4. Trade Finance: This module presents an end-to-end solution for the trade
finance needs of a bank. It is fully integrated with the payment system and
exchange rate setup, and supports multicurrency processing of trade
products such as:
Documentary credit
Forward contract
Import and export financing
Letter of guarantee
Factoring
Buyers credit
5. Customer Analytics: The customer analytics module supports operations
with comprehensive intelligence, ranging from data acquisition to reporting
and analysis, leveraging quantitative modeling techniques and multidimensional reporting. It provides critical information such as customer
attrition scores or profitability measures to help develop a clear picture of the
customer. This information can also be extended to front-end applications or
combined with online tacit information to help make timely and effective
decisions. There is also the flexibility to pick and choose specific customer
analytics functions, relevant to the business, across the customer life-cycle
stages of acquisition, development, and retention.
6. Wealth Management: Create new revenue streams by offering high net
worth individuals and the mass affluent, products and services powered by
the Finacle wealth management solution.
End-to-end processing of investment products across asset classes
including structured products, equities, mutual funds, insurance,
bonds, futures and options.
Unified solution for wealth management needs of front office, mid
office and back office.

Straight through processing across wealth and core banking functions

such as limits management, payments.
Rule based configuration to accelerate launch of new products such
as dual currency deposits, principal protected deposits, range accrual
deposits, mutual funds, and insurance products.

7. Islamic Banking: Finacle Islamic banking solution offers an integrated and

comprehensive approach for banks to define and present Shariah-compliant
products to customers. Strong product definition features, support for Islamic
accounting and complete traceability for audit differentiate the solution.
Completely self-contained, it is replete with the accounting backbone to
support back office functionalities and provides straight through processing
(STP) capabilities on a SOA platform.
A single solution built on the standard technology infrastructure available for
conventional banking; the Finacle Islamic banking solution addresses both
Islamic banking and international needs. Developed with incisive insight into
the Middle East, Far East and European markets, the solution is truly geared
to address region-specific Islamic banking requirements.
Offer Shariah-compliant products to customers and address their needs for
Islamic banking along with international offerings.
Solution offers a flexible and varied feature repertoire for banks to
design and deploy products for varying market segments, based on
different Islamic concepts including Mudarabah, Murabaha, Ijarah,
Istisna, Kafalah and Tawarruq. The solution also offers a wide range of
possibilities for business users at the bank to create products and
embellish them with innovative features.
Unified, comprehensive, real time view of the client across the
enterprise covering both Islamic & non Islamic products

8. Payments: Modernize your payments with Finacles advanced enterprise

payments services hub:
The solution manages end-to-end payments lifecycle and processes
payments regardless of payment instruments, originating channels,
hosting modules and payment networks.
The SWIFT ready solution is designed leveraging ISO 20022 standards
to deliver seamless interoperability across various global and local
payment networks.
9. Mobile Banking: The Finacle mobile banking solution offers a rich, secure,
and intuitive banking and payment experience to retail and corporate
customers. The solution works on a variety of mobile devices, platforms, and
access modes. It seamlessly integrates with disparate host systems to bring
unique cross-channel synergies.
The Finacle mobile banking solution is complemented by a rich suite of
surround solutions offering analytics and alerts capabilities through global
partnerships. In summary, Finacle mobile banking solution offers an essential

combination that helps banks successfully deliver banking services to global

customer segments ranging from the mass affluent to the underbanked. The
key modules of mobile banking are:
Customer onboarding
Banking and payments
Financial management

THE FUTURE OF BANKING FROM FINACLE

Managing costs effectively can only take your business so far. What your bank really
needs is accelerated growth. Whether its entering new markets, introducing new
products, or initiating process changes, you need to aggressively unlock the key
value levers of your business. Very powerful waves of change are creating new
opportunities. The advent of the digital consumer, new commerce changing the
rules of the game, and the emergence of the cloud are some significant examples.
We believe that accelerating inventiveness will enable banks like yours, to
withstand further tremors, counter market forces, spark growth, and create
competitive advantage. However, one must be careful to invest energies in
meaningful innovation, which contributes to agility, efficiency, growth, and value
creation for the organization, customers, and partners. Product, service, or process
innovation initiatives must be aligned with the new reality defined by higher
customer expectations, tighter resources, fiercer competition, and stricter
regulations.
Although banks innovate from time to time, most do not have a cohesive innovation
strategy in place. That needs to change, and quickly. While laying down the vision
for innovation, senior management must ensure ground-level support by way of
technology infrastructure, employee training, and a collaborative partner network.
The future of banking institutions depends on how successfully they meet the
following expectations:
Managing consumer-driven sales
Complying with emerging regulations
Tackling competition
Coping with organizational restructuring
Regaining consumer confidence
Managing green regulations
Staying abreast with changing technologies
Adopting cross-industry best practices