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Core Banking Transformation:

Measuring the Value

Core banking transformation refers to the replacement, upgrade, or outsourcing of a banks core
banking systems which are an integrated suite of software applications for processing and
posting of transactions and managing the accounting processes of settlement. These applications
perform mission-critical operations for a bank related to accounts, loans, payments, and
securities, and constitute the heart and backbone of the banks information technology
The first core banking systems appeared in the 1970s and were mainly developed in-house and
ran on mainframes. Package-based solutions started to appear in the 1980s but were limited in
their ability to handle large volumes. In the 1990s, new players entered into this space with
package offerings that were more open, flexible, and customer-centric. The core banking
solutions developed in the last decade have focused on convergence of digital channels along
with increase in scalability and flexibility. These solutions focus on enhancing the mobility for
the customer and internal bank staff, and on achieving real-time channel processing and multichannel integration capabilities.
This paper explores how core banking solutions of the future must be truly global so a bank can
easily deploy a system across multiple geographies. New core banking solutions will be more
scalable, adaptable, and process-centric than before and will be lean and fast to be economical to
deploy over the cloud and enhance the banks agility in responding to competition and changing
business requirements.

What is core banking?

Core banking has historically meant the critical systems that provide the basic account
management features and information about customers and account holdings.
Modern packaged core banking platforms are typically more holistic and often include these
features as well as:

Customer relationship management features including a 360 degree customer view

The ability to originate new products and customers

Banking analytics including risk analysis, profitability analysis and provisions for capital
reserve allocation and collateral management

Banking finance including general ledger and reporting

Banking channels such as teller systems, side counter (sales) applications, mobile
banking and online banking solutions

Best practice workflow processes

Current banking operations and technologies are often complicated to operate and maintain. In
many cases, the cost of operating and maintaining legacy systems is very high. Moreover, these
may not allow the flexibility to design new product offerings based on ever changing needs of
the consumers. These factors necessitate a transformation of existing platform(s).
Core banking transformations, if done right, can radically change a bank's operating and IT
models. They deliver greater value in the form of growth, profitability, performance,
productivity, service operability, customer satisfaction, and competitiveness.
Core Banking Transformation Journey

The journey to core banking transformation involves clear definition of targeted end state
architecture and requirements that can not only support the IT and operational needs of the
enterprise, but can also fuel its business growth as well. It involves clear understanding of the
multiple factors which can help the bank to reach its envisioned goal

i-exceed Implementation Process Framework

Our professionals have the powerful combination of skills and experience that is vital for
successful end-to-end transformations. Leveraging this vast experience, the i-exceed team
created i-SCALE, a process framework that focuses specifically on core banking
transformations. i-SCALE allows banks to arrive at a transformation strategy, define the path
with milestones, execute the transformation and finally maintain the solution post deployment.
The framework ensures that a strong governance process is established in all these stages.

Initiate and arrive at a transformation strategy

Strategize to define the path with milestones

Control and enforce governance at all stages

Adopt the deployment plan

Leverage existing reusable components

Execute the transformation and maintain

We offer a range of services in the core banking transformation space


System Integration

Multi-Country Rollouts

Implementation Consulting

Data Migration services

Performance Management


Requirement Management

Change Management Consulting

Turn-Key Application Developement

Testing & Validation

Business Intelligence & Reporting


Strategy: Transformation strategy, Solution Architecture, Program/ Change

Management, Business Process Re-engineering

Consulting: Multi-Country rollout, Systems Integration, Data Migration,

Performance Management

Development: Requirements management, Application

Testing & Validation, Business Intelligence & Reporting



Structured process to execute core banking transformation (i-SCALE


Access to a large talent pool of subject matter experts experienced in core

banking transformation

Well defined risk and governance model with the help of our experienced
strategy consultants

Offshore development centre in India to cater to software development


Professionals with global exposure and experience in handling complex

multi country rollouts

Content management facilities

Governance and compliance capabilities such as internal controls management and


Security control and audit capabilities

As you can likely tell from the two very different descriptions above older core banking
platforms and modern core banking platforms are quite different. Replacing these older systems
with modern ones is often a time when banks consider strategic transformation, process revision
and identifying new target operating models.
These are considered some of the most (if not the most) challenging and rigorous initiatives that
organizations can undertake with some programs lasting ten years or more and others assigning
teams of hundreds working towards a single big bang event.
Regardless of how you define or assess these programs it is clear that this is an emerging area
where collaboration and discussion can help develop best practices in this area.

The Eight Stages of Core Banking

Posted on December 20, 2011 by George Colwell 32 Comments

Commonalities in core banking transformations are what I look for. The common issues,
mistakes, and roadblocks that I have seen across a number of large banking transformations are
the things I like to solve for. Recently while speaking with a client they asked me if they were
any different then other banks going through the same type of transformation? Sadly I had to say
no. In fact I had to tell them that they were going through almost an identical process as other

banks. What are the stages that most banks undertaking a core banking transformation will go
through? For simplicity sake I have distilled my view on the common processes down to a list of
eight stages of core banking transformations:
Stage One The Excitement of Something New
Most banks go through an extremely detailed, time consuming, and costly RFP process when
assessing core banking solutions, integrators, and other peripherals required for their
transformation project. The elation at the end of the RFP process with the selection of a solution
(Vendor), integration partner (Integrator), and the other required hardware components normally
generates an amazing amount of excitement. The bank is over optimistic at this point and the
new project kicks off, all parties land on the ground its the excitement of taking on the new!
Stage Two Why is this so hard? Its the integrator!
The excitement only last so long until the bank realizes that this is harder then they assumed.
Gaining traction and momentum on the implementation takes longer than expected. All of the
parties dont seem to play well together. The bank assumes that the problem has to be the
integrator they hired to help them implement the system. They rethink the strategy, they look
back at the contract the bank and the Integrator descend into a renegotiation, the Bank looks for
alternatives, time and money are wasted sorting out the blame game. In the end there is normally
a replacement of the integrators senior management on the project some sort of concessions
made and the project continues.
Stage Three- The Vendors product is defective and full of gaps!
Ill-defined processes start to come out of the woodwork. The capabilities and standards of the
purchased solution start to be understood by the bank. Enhancements, extensions, and
configurations start to be identified, effort and duration start to increase. The solution was
oversold, says the Bank! You have asked for non-standard processes or functionality that was
identified to you in the RFP responds the vendor. This creates noise and uncertainty within the
project as suddenly scope is in question, the Bank and Vendor relationship is in question. Again
the Bank looks for alternatives, time and money are wasted sorting out the blame game. In the
end there is normally a replacement of the Vendors senior management on the project some sort
of concessions made and the project continues.
Stage Four Maybe we should cancel the project and sue!
The Bank is still upset! They feel cheated and betrayed. Pride takes over and leads a Bank right
to the edge of canceling the project and letting the lawyers sort it out. Thankfully extreme actions
normally also lead to extreme introspection. The healthy self inspection normally takes the bank
back to the strategic decisions made related to the selection of the solution, the understanding
that the need to transform is still in front of them. This normally pulls them back from the edge
and the project continues.
Stage Five Maybe we dont know our processes?

Stage fours introspection normally leads the Bank to question their own understanding of their
processes. The understanding that a complete view of processes is missing within the
organization allows them to question their status quo and opens their process up to true
Stage Six Maybe its our organization?
The natural progression to question the status quo of the processes normally leads to an epiphany
related to the banks overall organization structure and questioning their management by silo
mentality. Internally a power struggle over the definition and ownership of the business
processes starts as the business realizes this isnt an IT project it is a dramatic transformation of
the business with the core banking transformation acting as a catalyst.
Stage Seven All Hands on Deck!
The organization wakes up. The executive sponsor realizes that they actually need to do
something other than sitting in status meetings. An all hands on deck mentality manifests as the
Bank realizes internal infighting will not solve their problems. Normally there are some drastic
changes in the Banks senior management structure at this point.
Stage Eight Successful go live all is forgiven
Two or three years have passed, with multiple releases, and the final transformation is ready to
go live. There will always be issues to resolve but for the most part the go-lives are successful.
The core-banking platform has been replaces, processes redesigned, and the organization
transformed for the better. The Bank has forgotten the trials and tribulations and normally
becomes a supporter of the Vendor and their solution, and considers the Integrator a trusted
business partner going forward.
Banks concerned with saving time and money in transformations will do the work required early
on to address their own processes and organization issues (moving steps five and six ahead of
step number one). They will also diligently work to remove steps two through four from their
transformational journey. I would be interested to hear from others that have seen this pattern.

Core banking
Core banking is a banking service provided by a group of networked bank branches where
customers may access their bank account and perform basic transactions from any of the member
branch offices.

Core banking is often associated with retail banking and many banks treat the retail customers as
their core banking customers. Businesses are usually managed via the Corporate banking
division of the institution. Core banking covers basic depositing and lending of money.
Normal core banking functions will include transaction accounts, loans, mortgages and
payments. Banks make these services available across multiple channels like ATMs, Internet
banking, mobile banking and branches.[1]
The core banking services rely heavily on computer and network technology to allow a bank to
centralise its record keeping and allow access from any location. It has been the development of
banking software has allowed core banking solutions to be developed.

Core banking became possible with the advent of computer and telecommunication technology
that allowed information to be shared between bank branches quickly and efficiently.
Before the 1970s it used to take at least a day for a transaction to reflect in the account because
each branch had their local servers, and the data from the server in each branch was sent in a
batch to the servers in the data center only at the end of the day (EoD).
Over the following 30 years most banks moved to core banking applications to support their
operations where CORE Banking may stand for "centralized online real-time exchange". This
basically meant that all the bank's branches could access applications from centralized data
centers. This meant that the deposits made were reflected immediately on the bank's servers and
the customer could withdraw the deposited money from any of the bank's branches.

Software solutions
Core banking solutions is jargon used in banking circles. The advancement in technology,
especially Internet and information technology has led to new ways of doing business in
banking. These technologies have reduced manual work in banks and increasing efficiency. 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 computer networks based on telephones, satellite and the internet. It allows the banks
customers to operate accounts from any branch if it has installed core banking solutions.
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. Core banking systems
typically include deposit, loan and credit-processing capabilities, with interfaces to general

ledger systems and reporting tools. Core banking applications are often one of the largest single
expense for banks and because and legacy software issues a major issue in terms of allocating
resources. Strategic spending on these systems is based on a combination of service-oriented
architecture and supporting technologies that create extensible architectures.
Many banks implement custom applications for core banking. Others implement/customize
commercial ISV packages.
While many banks run core banking in-house, there are some which use outsourced service
providers as well. There are several Systems integrators like Cognizant, Capgemini, Accenture,
IBM and HP which implement these core banking packages at banks.

Some advantages of CBS are:

CBS increases employee efficiency and reduces human error and fraud.

It also facilitates the correction of errors.

CBS adoption has given bank employees the opportunity to strengthen their relationships
with customers.

The number of public sector bank branches in India with CBS implementation increased from
79.4% in March 2009 to 90% in March 2010.


ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659 crore at March
31, 2005 and profit after tax of Rs. 2,005 crore for the year ended March 31, 2005 (Rs. 1,637
crore in fiscal 2004). ICICI Bank has a network of about 560 branches and extension counters
and over 1,900 ATMs. ICICI Bank offers a wide range of banking products and financial services
to corporate and retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management.
ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs
of clients and leverage on its domestic banking strengths to offer products internationally. ICICI
Bank currently has subsidiaries in the United Kingdom and Canada, branches in Singapore and
Bahrain and representative offices in the United States, China, United Arab Emirates,
Bangladesh and South Africa.
ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai and the National

Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the
New York Stock Exchange (NYSE).
As required by the stock exchanges, ICICI Bank has formulated a Code of Business Conduct and
Ethics for its directors and employees.
At April 4, 2005, ICICI Bank, with free float market capitalization of about Rs. 308.00 billion
(US$ 7.00 billion) ranked third amongst all the companies listed on the Indian stock exchanges.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs
listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors
in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry.
The principal objective was to create a development financial institution for providing mediumterm and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its
business from a development financial institution offering only project finance to a diversified
financial services group offering a wide variety of products and services, both directly and
through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first
Indian company and the first bank or financial institution from non-Japan Asia to be listed on the
After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking, the
managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI
Bank would be the optimal strategic alternative for both entities, and would create the optimal
legal structure for the ICICI group's universal banking strategy.
The merger would enhance value for ICICI shareholders through the merged entity's access to
low-cost deposits, greater opportunities for earning fee-based income and the ability to
participate in the payments system and provide transaction-banking services.
The merger would enhance value for ICICI Bank shareholders through a large capital base and
scale of operations, seamless access to ICICI's strong corporate relationships built up over five
decades, entry into new business segments, higher market share in various business segments,
particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI
and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services
Limited and ICICI Capital Services Limited, with ICICI Bank.

The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the
High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at
Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI
group's financing and banking operations, both wholesale and retail, have been integrated in a
single entity.

Temenos T24 Core Banking

Temenos T24 (T24) is a complete front- to back-office, CRM and product lifecycle management
software platform that powers core banking operations.
Consistently ranked as the first or second best-selling core banking software platform worldwide
for the past 14 years (International Banking Systems Sales League Table), T24 has been
developed using a complete service-oriented architecture thats modular so banks can deploy and
integrate the required functionality alongside the needs of their business.
Running 24/7 and in real-time, it equips you for the banking technology and market challenges
of today and tomorrow.
T24 can be implemented and managed on premise or deployed as software-as-a-service (SaaS)
a cloud-based delivery model. SaaS offers quick, easy access to T24 core banking software
without the need for significant internal IT resources and expensive infrastructure, making it the
ideal deployment choice financial institutions that wish to move fast without the burden of
complicated in house IT systems.

Seamless integration
T24 integrates seamlessly with both back office data and self-service channels to provide a
consistent customer experience. It is completely compatible with your existing banking systems,
enabling you to deploy and control a flexible range of multi-channel, next generation banking
services for your customers efficiently, securely, cost effectively and profitably.
T24 can be implemented as a model bank version with built-in industry best practice processes,
or as a highly configurable version that Temenos tailors to your specific requirements, ensuring
efficiency and compliance with all internal and external regulations or as a combination of
T24 Margin Lending fact sheet

Business efficiency
T24 is based on an advanced technology architecture that provides platform independence, realtime interfaces, extreme usability, high performance, excellent productivity for configuration and
deployment and modular components. It has the flexibility to support the needs of any bank
from the smallest greenfield operation to the largest multinational.
T24 has an unrivalled track record worldwide in:

reducing the cost of ownership

enhancing productivity

mitigating risk

expanding channels-to-market

lowering costs

improving customer service

optimising up-sell and cross-sell opportunities

driving growth

T24 Biometric fact sheet

Open standards
Coded to provide a balance of high performance, extensibility and upgradeability, T24 is based
on industry standards. Hardware and database agnostic, T24 runs as a message-driven bean in
Java standard JEE application servers.

Applications can interact with T24 through industry standard OData or web services interfaces
and can integrate with T24 using event-driven messages.
T24 has its own browser-based user interface providing responsive design for desktops, tablets
and smartphones. Being platform-agnostic means banks can choose the best vendor or
environment for their needs, and change without altering their T24 investment, maximizing its
longevity. T24 users can also tailor their functionality and flexibility without compromising their
ability to upgrade to later versions. T24 provides highly productive design tools for model-driven
development and change deployment.
Multiple sector deployment
Temenos T24 provides a high performance foundation for you to manage users, customers,
processes, risks, delivery channels and applications as well as deploy a full range of banking
services across specialized lines of business.
T24 is the most widely deployed core banking software globally (International Banking Systems
annual core banking sales report), and this experience continues to be incorporated into T24,
giving it the most comprehensive coverage across retail, corporate, wholesale, universal, Islamic,
private wealth management and microfinance banking.
T24 UK Solution
Overcoming barriers to entry for the UK banking market

Temenos T24 The solution for UK New Entrants

T24s core banking solutions include:

Core processing

T24 is a massively scalable straight-through-processing solution. Robust

transaction processing engines facilitate highly automated transaction
handling from multiple channels and devices, driving growth and profitability
for the bank. Key features include user configurable automated exception
handling and a transaction recycling mechanism, plus protection from
unwanted costs and potentially fraudulent transactions.

Regulation and compliance

T24 provides an IFRS solution with the capability to classify and measure
financial instruments, recognize the profit and loss, and enable full disclosure,
as well as supporting your local GAAP accounting treatment. It also provides
support for regulatory frameworks, such as Basel II and III, and regulatory
reporting including:

FATCA compliance (for US-source income), through comprehensive

functionalities relating to client identification, calculation of the
withholding tax and reporting requirements

MiFID compliance, through a process that ensures trades are placed on

MiFID-compliant stock exchanges and are executed at the best price.

FATCA Module For T24

Achieve FATCA compliance with Temenos T24.

Front office
Despite the sophistication of self-service channels, human contact through the front office
remains the channel of choice for many clients.
It is also critical for handling complex transactions, where advice or consultation is required.
T24s customer onboarding and origination solutions enable the efficient acquisition of new
clients and new business.
Processes are highly automated, but user definable, with configurable decisions to ensure
efficiency and compliance with all internal and external regulations. For day-to-day transactions,
T24 provides branch and call centre staff with a complete 360 view of a clients business and

Important information on core system upgrade

The core banking system upgrade will begin at 12 noon on (Saturday) May 9, 2015 and conclude
at 9 a.m. on (Monday) May 11, 2015.

1) Which services will be available during this period?



May 9, 2015 on Branches

Saturday till 12

Transactions available

Cash Deposit

Cash Withdrawal

DD/ PO issuance



Transactions available

Funds Transfer/ RTGS/ NEFT

Cheque book request

Cheques deposited in our branches till 6 p.m. on

Friday will be processed on May 9, 2015

All cheques submitted to us after 6 p.m. on

Friday, May 8, 2015 will be taken up for
processing on May 11, 2015 (Monday)

Beyond 12 noon the branch channel will be

closed till 9 a.m. on (Monday) May 11, 2015

Cash Acceptor Machines (in Electronic Branch/

ATM lobby) will be available till 4 p.m. on
(Saturday) May 9, 2015

Cash withdrawal

Cash withdrawal at Non ICICI Bank ATMs

Balance inquiry

Mini statement inquiry

Funds Transfer

Cheque book requests

Generate password

FD/ RD Creation

Balance inquiry

Mobile number update

Funds Transfer between ICICI Bank accounts

May 9 11, 2015




All transactions available like IMPS/ Debit/ credit



Transactions available
transfer services

2) Which services will be unavailable during this period?

Only a limited number of services will be unavailable during this period.


May 9, 2015


Transactions not available

Cash Acceptor Machines:

Within Branches - not available from 12 noon on
(Saturday) May 9, 2015 till 9 a.m. on (Monday) May 11,
In Electronic Branch/ ATM lobby - not available from 4
Branches p.m. on (Saturday) May 9, 2015 till 9 a.m. on (Monday)
May 11, 2015
Inward remittances will be available on Internet Banking
till 2 p.m. on (Saturday) May 9, 2015. It will not be
available on (Sunday) May 10, 2015

May 9, 2015


Transactions not available

Account modification requests for Savings and Current

Branches Accounts will be accepted till 12 noon on (Saturday) but
will be processed on (Monday) May 11, 2015

May 9, 2015 on
Saturday post
12 noon


FD/ RD creation

Transfer to PPF accounts

PIN regeneration

Mobile number change will not be real time but will

be completed on (Monday) May 11, 2015

Linking of Savings/Current account to User ID

Deposits --> iWish accounts will not be available

Email ID Updation on the site and Email Updation


May 9, 2015


Transactions not available

Cash Acceptor Machines:

Within Branches - not available from 12 noon on
(Saturday) May 9, 2015 till 9 a.m. on (Monday) May 11,
Branches In Electronic Branch/ ATM lobby - not available from 4
p.m. on (Saturday) May 9, 2015 till 9 a.m. on (Monday)
May 11, 2015
through SMS

Account Statement by email

Stop Cheque Request-Single and Multiple

Cheque Status Inquiry

Tax Payments

Form 15 G/H

Income Tax e-File

Transfer to PPF Account

Invest @Ease- Online Purchase of Mutual Fund

FD/RD creation through Banks website

The following service requests will not be available:

Communication Address change

Cheque Book request

Status of Cheque Book not received

Request for lost ATM Debit Card

Status of ATM Debit Card not received

Reissue of ATM Debit Card PIN

Duplicate Physical Statement

Advantages of Core Banking:

Following are the advantages of Core Banking:

Limited Professional Manpower to be utilized more effectively

Customer can have anywhere, more convenient and easier


ATM, Internet Banking, Mobile Banking, Payment Gateways,

Referral Business

More Strong and economical way for MIS

Reduction in Branch Manpower by 15-20%

Additional Manpower available for Marketing, Recovery and

Personalized banking

Instant Information availability for decision support

Quick and Accurate Implementation of Policies

Improved Recovery Process causing reduction on recovery costs,

NPA Provisions

Innovative, redefined or improved processes (e.g. Inter Branch

Reconciliation) causing reduction in Manpower at Head Office
Reduction in Software maintenance at Branch and Head Office

Centralized Printing and Backup resulting in reduction in capital

and revenue expenditure on printing and backup devices and
media at branches

Electronic Transactions with Other Financial Institutions

Increased Speed in working resulting in more business

opportunities and reduction in penalties, legal expenses etc

Core Banking Application:

Today Urban Co-operative Banks are facing stiff competition from

Private Sector and Multinational Banks. The Urban Co-operative
banks have upper hand in terms of services with human-touch, with
very tightly knit relationship with the customer. However with fasttrack lifestyles, customer needs are growing at much faster pace and
UCBs are finding it difficult to cope up with it. At the same time with a
strongly built setup of professionals and state of the art technologies,
Private Sector Banks have already made a dent, in the market
segment which is still dominated by Co-operative Banks and they are
successful in providing much more effective and innovative products
to the customers at much laser costs and blazing speed. The
customer, in the process is switching loyalties and the swing is
certainly towards PSBs.

UCBs now need to upgrade their total infrastructural facilities in order to face
this challenge. The infrastructural setup of UCBs is very much analogous with a
Load Bearing Structure which was an age old technique of constructing
buildings in the previous century while today we need to build the buildings
with much more scientific method of construction which is widely accepted as
RCC Structure. These structures can sustain much more load, impacts and
shocks and at the same time can be built to great heights. In the same analogy
UCBs need to make major structural changes in the setup and information
technologies are to be used as steel bars forming the core of the structure.
In a nutshell UCBs are more close to the customer but with poor ability to grow
at the same time PSBs are strongly built to grow may be with pure commercial
relationship with customer and a selfish agenda in mind.
To ensure that UCBs can maintain customer loyalty, gain a competitive edge
and meet the challenges of a changing market, banks need to build strong
information technology infrastructure.
If the UCBs upgrade their infrastructure with strong IT setup and revolutionary
changes in management setup and rise to the level at par with PSBs then they
will certainly have an edge over PSBs in terms of relationship based banking
because UCBs basically have a socio-commercial view towards customers and
not purely commercial focus which is the ultimate goal of people who promote
or control PSBs.
Present State of Technology being used

Information Technology has become an essential and integral part of banking.

As a result, during last five years UCBs have realized the need to create IT
infrastructure in order to have a competitive edge. But with limitations on
capital s on hand and skilled, professional and IT enabled manpower, the result
is inadequate IT infrastructure to face the challenges.
UCBs tried applications developed by vendors who had limitations on technical
capabilities, banking domain knowledge and ability to assimilate needs of the
changing hour. These systems proved to be inadequate as well incompatible
with the business needs except a few gains of saving labor in routine work. The
management of the banks who were suppose to be the major beneficiaries had
very marginal gains while employees at the front office were relived to a great
extent in the labor and customers were benefited to some extent by way of few
quicker services such as service at the counters for routine transactions, delivery
of passbooks, statement of accounts, demand drafts, and better accuracy in
interest calculations etc. UCBs have numerous vendors with varied technologies
used with different level of comfort for end users. Multilocational or distributed
location of data, ineffective back office activities, Management Information
Systems with poor speed in gathering data and questionable accuracy.
At the same time state of IT in PSBs is very different. They have implemented
and Integrated leading edge retail banking systems, have improved overall
management and appearance of documentation, have centralized databases
resulting in quick gathering of data. And are using above systems for better risk
cover, customer relations management, better identified and understood
opportunities, promoted credit card services, introduced internet based primary
banking services.

Important information on core banking system upgrade

The core banking system upgrade will begin at 12 noon on (Saturday) May 9, 2015 and will
continue till 9 a.m. on (Monday) May 11, 2015.

1) CIB-India application will not be accessible from 23:00 hrs

on May 8, 2015 (Friday) till 00.00 hrs on May 09, 2015
2) Which services will be available during this period?

May 9, 2015


Transactions available

Cash Deposit

Cash Withdrawal

DD/ PO issuance

Funds Transfer/ RTGS/ NEFT

Cheque book request

Cheques deposited in our branches till 6 p.m. on

Friday will be processed on May 9, 2015

All cheques submitted to us after 6 p.m. on

Friday, May 8, 2015 will be taken up for
processing on May 11, 2015 (Monday)

Beyond 12 noon the branch channel will be

closed till 9 a.m. on (Monday) May 11, 2015

Cash Acceptor Machines (in Electronic Branch/

ATM lobby) will be available till 4 p.m. on
(Saturday) May 9, 2015





May 9, 2015 on
Saturday post 12



Transactions available

Cash withdrawal

Cash withdrawal at Non ICICI Bank ATMs

Balance inquiry

Mini statement inquiry

Funds Transfer

Cheque book requests

Generate password

FD creation

Account statement

Balance inquiry

Trade online (Limited services)

Account information services

Balance inquiry

Password activation request for individual and

Proprietor account

Blocking of debit card

Status of deliverables

Debit card Pin generation

3) Which services will be unavailable during this period?

Only a limited number of services will be unavailable during this period.


May 9, 2015



May 9, 2015
on Saturday
post 12 noon


Transactions not available

Cash Acceptor Machines

Within Branches - not available from 12 noon on

(Saturday) May 9, 2015 till 9 a.m. on (Monday) May
11, 2015

In Electronic Branch/ ATM lobby - not available from

4 p.m. on (Saturday) May 9, 2015 till 9 a.m. on
(Monday) May 11, 2015

Account modification requests for Savings and

Current Accounts will be accepted till 12 noon on
(Saturday) but will be processed on (Monday) May
11, 2015

FD/ RD creation

Transfer to PPF accounts

PIN regeneration

Mobile number change will not be real time but will

be completed on (Monday) May 11, 2015

Tax payment

Cheque book request

Stop Cheque request

Fund transfers and approvals

Bill payments

Trade online (Limits and balances)

Payments (Transfers and approvals)




Transactions not available

Fund transfers and approvals

Statement Request

Communication Address change

Stop Cheque request

Request for Opening FD


4) Please find below time of system restriction for online

transactions from May 08, 2015
State Name

Actual Cut-off

System Cut-off on
May 8

Chhattisgarh (Online)

04:00 PM

03:50 PM

Gujarat (Online)

05:00 PM

04:50 PM

Orissa State Tax Online

08:00 PM

07:50 PM

West Bengal State Tax

08:00 PM

07:50 PM

Tamilnadu State Tax Online - Old Mandate 08:00 PM

07:50 PM

Uttrakhand Commercial State Tax

08:00 PM

07:50 PM

Madhya Pradesh State Tax - Bhopal

08:00 PM

07:50 PM

Madhya Pradesh State Tax - Indore

08:00 PM

07:50 PM


08:00 PM

07:50 PM

Punjab VAT - Online

08:00 PM

07:50 PM

Delhi VAT

08:00 PM

07:50 PM

Uttrakhand Virtual Treasury Tax

08:00 PM

07:50 PM

Tripura Commercial State Tax - New

08:00 PM

07:50 PM

State Name

Actual Cut-off

System Cut-off on
May 8

Sikkim State Tax

08:00 PM

07:50 PM

Assam State Tax

12:00 AM

11:50 PM


12:00 AM

11:50 PM

Telangana State Tax

12:00 AM

11:50 PM

AP (Online)

12:00 AM

11:50 PM

Indirect tax - Online

12:00 AM

11:50 PM

Direct tax (Online)

12:00 AM

11:50 PM


12:00 AM

11:50 PM

MCA (Online)

12:00 AM

11:50 PM

MOCA (Online)

12:00 AM

11:50 PM

E-Railway Freight

12:00 AM

11:50 PM

GOI Bonds (Online)

12:00 AM

11:50 PM

MAY 2015 Top 40 Rankings 1 to 40

iRanking ordered list of core banking system vendors fully-listed and
ranked vendors of interest

Application Software

The Top 3
Top 10, 1 to 3
T24; T24 for Microfinance
and Community Banking
(MCB) formerly eMerge;
CoreBanking (TCB)


Oracle Banking Platform,

Oracle Financial
Flexcube (formerly i-flex
Services Software Solutions), Microbanker,

Infosys Technologies


Top 10
ranked 4 to 10

FIS | Fidelity National

Information Services (FNIS)

Corebank, FIS Alltel

Sanchez Profile,
Horizon ACBS
Commercial Banking
System), Kordoba,
ALLprofits, MiSER,
BancPac, Metavante


ICBS (International)
| Signature by
Fiserv, - Fiserv CBS
Catapult; Premier;

TCS FS - Tata Consultancy

Services Financial Solutions

Universal, Retail,
Private, Wholesale
core banking and
treasury suite (xref.
FNS b@ncs-24, TKS


What is Core Banking Project?

India Post has a vision to be one of the leaders in providing banking and money remittance services
to the citizens of the country with a focus on the rural population. This vision translates into the
following strategy:
Be the first choice in savings bank deposits schemes with innovative customer-centric
Provide access to diverse financial services products thereby becoming the engine of
economic and social growth
Increase operational efficiency through the induction of state of art technology.
In order to meet the requirements and need of the India Post 2012 Project, Core Banking Solution
(CBS) will be implemented across India Post covering all the post offices.
CBS is networking of branches, which enables customers to operate their accounts, and avail
banking services from any post office on CBS network, regardless of where they maintain their
account. The customer is no more the customer of a particular post office. Thus, CBS is a step
towards enhancing customer convenience through Anywhere and Anytime Banking . CBS /Postal
Banking solution is part of the overall solution planned for India Post, 2012 project. A graphic
representation of the same is given below:

What is the need for Core Banking Solution?

Need for Core Banking Solution:
Improve operational efficiency -reduce cost of operations
Core Banking will provide various alternative delivery service channels, which reduce cost and
time taken for the transactions. Currently banks counter transaction costs are around Rs. 45-50
per transaction. On the other hand, the transaction cost of withdrawal from an ATM is Rs. 15-18.
For net banking, the cost is Rs. 4 per transaction. The centralised process of core banking will
also improve efficiency by avoiding duplication of work in post offices from Branch Office (BO)
to Sub Post Office (SO) to Head Post Office (HO).
Improve customer service
Core Banking will improve customer services by providing services through alternate channels
on 24 x 7 basis ATM, Internet, Phone, SMS and Mobile Banking. Customers would be able to
operate their accounts, and avail banking services from any post office on CBS network,
regardless of where they maintain their account.

Comply with Anti Money Laundering (AML) / Know Your Customer (KYC) requirements
It is easy to comply with antimoney laundering norms through core banking. The AML norms
require the post office to detect when a customer has opened multiple accounts. This is not
possible in Sanchay Post. Moreover, compliance with KYC norms is required to issue debit cards
to the customers.
Integrate with electronic payment systems
Integration with electronic payment systems will allow Department of Post to participate in an
inter-operable electronic payment network run by the National Payments Corporation of
India. This will help in quick and safe transfer of funds through National Electronic Fund Transfer
(NEFT) and Real Time Gross Settlement (RTGS)/

List of Post Offices Migrated to Core

Banking Solution (CBS)
Post Offices all over India are preparing for Core Banking Solution.
employees are

Now India Post

frequently saying or using one word i.e. Migration

in all their

conversations. Here migration means changing the POSB platform from Sanchay Post to
Finacle, Core Banking Solution (CBS) from Infosys.

started Migration to Core Banking Solution by the end of 2013. The first migration was
happened on 16.12.2013 at Greams Road S.O under Thygarayanagar HO in Chennai City
Region of Tamil Nadu Circle.

Now Post Offices from all 22 Postal Circles have been included in the migrated list. Total of
2148 Post offices including 725 Head Post Offices and 1423 Sub Offices have been rolled out
for CBS until now. All Head Post Offices in India will be migrated to CBS by the end of
March 2015.

Finacle is a core banking software package developed by Indian technology corporation Infosys.
It is used by multiple banks across several countries, it can handle multi-currency transactions.[1]
Finacle offers a suite of products, which are periodically evaluated by independent research firms
like Forrester. The list of products include.[2]

Finacle Core Banking Solution

Finacle CRM Solution

Finacle e-Banking Solution

Finacle Treasury Solution

Finacle Wealth Management Solution

Finacle Islamic Banking Solution

Finacle Direct Banking Solution

Finacle Mobile Banking Solution

Finacle Rural Banking Solution

Finacle Inclusion Solution

Finacle Analyz

Finacle Alerts Solution

Finacle Advizor Solution

Finacle Lite

Finacle Finanz Tools

Finacle Digital Commerce Solution

Finacle Operational Data Store

Finacle Origination Solution

Finacle Multichannel Framework

Finacle Offers and Catalog Solution

Finacle Payments Solution

Finacle Liquidity Management Solution

Finacle Nostro Recon Solution

Infosys SocialEdge Solution

Several major customers of Finacle include Bank of India Nadra Bank of Ukraine, ICICI Bank of
India and Al Hilal Bank of the United Arab Emirates.[3][4]
In 2004, Indias largest bank, State Bank of India (SBI), decided to deploy Infosyss Finacle core
banking, e-banking and treasury solutions across its global operations in 20 countries.[5] Finacle
was implemented in 25 countries across the world. The bank's global business operations were
standardised on the Finacle platform, on three data centers in the US, UK, and India. These three
data centers were later downsized to a single one in India, while upgrading the entire system.
This achieved a reduction in cost. The bank was also able to offer more products, roll them out
faster, and roll them out globally.[6]
DBS Bank, Singapore, selected Finacle Universal Banking Solution from Infosys as the core
banking platform for the programme. The bank ventured on the implementation of Finacle in
Singapore and its key markets across the region to deepen its leadership in the market with
advanced core banking product offerings, and strengthen its technology platform. Finacle was
implemented in 13 countries.[7]

Emirates NBD, created from the merger of two leading banks in Dubai (Emirates Bank and
National Bank of Dubai) is the largest bank in region by asset size. The bank implemented
Finacle in 2009 to be the solution "core to the merger" and an "ideal solution" for facilitating the
bank's expansion plans into the region.[8]
Finacle was implemented at Punjab National Bank, Indias second largest public sector bank at
all its 4,604 branches and extension counters on Sun infrastructure and the Oracle database. The
bank said that the solution was rolled out across 100 per cent of PNBs branches in record time.
The bank had 22,500 concurrent users on the Finacle platform, with the number of peak
transactions at 3.5 million. [9]
In 2011, Finacle was set to enter the United States market via a deal with Union Bank N.A. of
California, reported at a value of US$20 million. The deal was however called off by the bank in
the same year.[10]
Finacle was chosen by Standard Bank, South Africa as the preferred solution for Africa
(excluding South Africa). Its flexibility, scalability, cost effectiveness and compatibility with
other systems in the bank made Finacle the ideal choice. In July 2011, Nigeria was the first
country to start operations on Finacle. Namibia was the second country to go live on Finacle in
2012. Uganda, Tanzania, Zambia and Botswana are in the pipe line to launch operations on
Kotak Mahindra Bank implemented the Core Banking Solution platform Finacle 10 in May
2012. The entire implementation, which replaced the bank's legacy core banking system with no
disruption to business, was completed in 18 months. Finacle 10 was found to be the best fit, both
functionally and technologically by the bank.[12] Kotak Mahindra Bank is the fourth largest
Indian private sector bank by market capitalization, headquartered in Mumbai, Maharashtra.[13]
In October 2012, Rizal Commercial Banking Corporation (RCBC), a private domestic
commercial bank in the Philippines, implemented Finacle on the IBM System Z server to
transform its business and leverage new growth opportunities in an increasingly competitive
consumer banking market. The transformation was completed smoothly with no disruption in
services to RCBC customers.[14]
Turkland Bank (T-Bank),[15] one of Turkeys private banks completed the installation of the
Infosys Finacle core banking solution, which includes customer relationship management (CRM)
and treasury modules in May 2013. The Turkish bank says that the live deployment of the
Infosys Finacle software will enable T-bank to roll-out products faster and improve customer
services helping to meet the growing needs of retail and corporate customers in a fast expanding
In September 2013, Infosys announced the launch of Finacle 11E, an advanced universal banking
solution that simplifies banking transformation. The solution, built on the component model,
helps banks of all sizes efficiently modernize their operations in a phased manner, reducing the
risks in the journey. The enterprise class components are expected to improve both the bank's
efficiency and the customer experience across all channels. Some of the new enterprise

components added to the Finacle suite include - Payments, Multichannel Framework, Offers and
Catalog, Liquidity Management, and Dashboards.[17]
In November, 2014 it has successfully implemented its Finacle core banking solution for
Discover Financial Services (NYSE: DFS), a leading U.S. direct bank and payment services
Finacle also won a deal at Qantas Credit Union for deployment of the solution on a private cloud.

Views from Analyst Community

Infosys from Finacle was identified as a long term leader by Forrester for offering
comprehensive banking functionalities. With capabilities to support customer focused banking,
customer oriented product configuration, a multi channel capability and social media support,
Finacle topped the Forrester Wave: Customer-Centric Global Banking Platforms.[2]
Finacle from Infosys was positioned as the leader in Gartner Magic Quadrant for International
Retail Core Banking in November 2014, ahead of SAP and Temenos, demonstrating the highest
Ability to Execute, and Completeness of Vision.[19]
IDC Financial Insights released in its new IDC MarketScape report, and noted Infosys-Finacle as
a "leader". The solution is considered to exhibit high levels of strategic vision, demonstrable an
ability to deliver functionality and support to their clients. The recent signing of new contracts in
Europe indicated that the vendor was able to overcome the hurdles of regulatory requirements
and budgeting constraints for core banking systems in Europe.[20]
Finacle Mobile Banking and e-Banking solutions were rated as Best-in-Class for security and
authentication capabilities and enterprise support, in a report published by CEB TowerGroup

Infosys - Finacle

Infosys Technologies Ltd. (NASDAQ: INFY) defines, designs and delivers

IT enabled business solutions.
Infosys provides a complete range of IT consulting outsourcing services
based on strong domain and business expertise and strategic alliances
with leading technology providers. Infosys' service offerings span
business and technology consulting, application services, systems
integration, product engineering, custom software development,
maintenance, re-engineering independent testing and validation services,
IT infrastructure services and business process outsourcing (BPO).
Infosys is a leading global IT organization with over 40 offices and
development centers in India, China, Australia, the Czech Republic,
Poland, the UK, Canada and Japan.
Infosys is well positioned to be a bank's long term technology partner.
Corporate headquarters: Bangalore, India
US headquarters: Fremont, CA

Finacle is the banking solution from Infosys Technologies.

History of Infosys banking products/brands:
BANCS 2000 (Core Banking System) came from a 1993 development for
an Indian retail bank
Bankaway - e-commerce product launched in 1997
BANCS connect (Financial middleware)
BANCS mart (Data warehousing solution)
Revamped Bancs2000 centralized and customer-centric banking solution
released in 1999
July 2000, the core banking product was re-launched as Finacle universal
banking solution
Products: Finacle Universal Banking Solutions
Finacle solutions from Infosys address the core banking, e-banking,
mobile banking, financial inclusion, Islamic banking, treasury, wealth

management and customer relationship management (CRM)

requirements of retail, corporate and universal banks worldwide.
Finacle is the chosen solution in over 106 banks across 60 countries.
Finacle is implemented across countries like the US, UK, UAE, Mainland
China, Taiwan, Hong Kong, Saudi Arabia, Maldives, Mauritius, Nepal,
Nigeria, Indonesia, Singapore, Uganda, Sri Lanka, Tanzania, Zimbabwe,
Thailand, Philippines, Jamaica, Cayman Islands and India.
Core Banking - Finacle core banking solution is a comprehensive,
integrated yet modular business solution handles the strategic and dayto-day (or core) processes of banks.
e-Banking - Finacle consumer e-banking solution is a proven Internet and
mobile solution for retail banking customers.
CRM - Finacle CRM solution is a modular, multilingual, web-based
customer-centric application that enables banks to leverage ready-todeploy CRM functionality.
Treasury - Finacle treasury solution is an integrated yet modular front,
middle and back-office solution built on best-of breed open technology
platforms, providing high scalability , flexibility and STP capability.
Mobile Solutions - Finacle mobile solutions can broadly be classified under
two categories: mobile payments and mobile banking solutions.
Alerts - Finacle alerts solution empowers banks with the capability to alert
end users about events recorded by the bank's business systems.
Web-based Cash Management - Finacle web-based cash management
solution is ideal for banks looking to deploy an online cash management
solution for their corporate customers.
Wealth Management - Finacle wealth management solution is a modular,
fully scalable, integrated core banking and investment management
system designed for the specific needs of retail and private banks.
Islamic Banking - Finacle Islamic banking solution offers an integrated

and comprehensive approach for banks to define and present Shariahcompliant products to customers.
Finanz Tools - Finanz Tools is an integrated family of tools that engage the
banks customers in personalized sales illustrations.
Suitable for larger institutions: Finacle is one of the few 'open' core
banking applications that runs live sites with volumes going up to a peak
of over 12M transactions a day, 17,000+ users, 19M+ customers, 2100+
branches and 3TB of database.
Platform: RISC based servers with Unix (AIX / Solaris / Tru64)
IBM AIX, HP-UX and Sun Solaris / Client / front-end - Any standard
device running a browser Thin client/ PC / Database Based on Oracle
(IBS 2008 primarily universal banking | Finacle | Total Customers: 108 /
New Signings in Yr: 14)
(IBS 2007 primarily universal banking | Finacle | Total Customers: 94 /
New Signings in Yr: 13)
(IBS 2006 / Finacle Core Total Customers 88 / Live Sites 72)
(IBS 2005 / Finacle Core Total Customers 88 / Live Sites 72)
(IBS 2004 / Finacle Core Total Customers 84 / Live Sites 72)
(IBS 2003 / Finacle Core Total Customers 73 / Live Sites 58)
Q2 2005 Infosys Finacle has been selected by Development Bank of
Singapore (DBS), the largest SE-Asian regional bank, in a significant new core
banking systems decision covering domestic retail business in Singapore.
ABN AMRO Bank - China Finacle selected by ABN Amro in 2004 for its Greater
China operations. Implementation of the system will begin in Taiwan, followed
by two Hong Kong sites, then China (Shanghai). Finacle will replace Fiserv's
State Bank of India - Intl Aug 2004 - Finacle selected for State Bank of India's
international operations. The bank has deployed Finacle core banking, e-banking
and treasury solutions across the current operations in 20 countries.

ABN AMRO Bank, India, China, Taiwan

Andhra Bank, India
ANZ, Australia, Laos, Indonesia
Arab National Bank
Axis Bank (formerly UTI Bank, India)
Bank of Baroda, India
CenturiOn Bank of Punjab, India
Credit Suisse Group
DBS Bank - Development Bank of Singapore
Dena Bank, India
First City Bank
First Bank of Nigeria
Government Housing Bank (GHB), Thailand
Hatton National Bank, Sri Lanka
Industrial Bank of India (IDBI) Bank
National Bank of Abu Dhabi
National Commercial Bank, Jamaica
National Commercial Bank, Jeddah Saudi Arabia
Oriental Bank of Commerce, India
Punjab National Bank, India
Sampath Bank, Sri Lanka
South Indian Bank, India
Standard Trust Bank, India
State Bank of India, India
UCO Bank, India
Union Bank of India, India
United Bank for Africa, Nigeria
United Bank of India
Union Bank of the Philippines

Following table shows the status of CBS migration in India Post up to 13.03.2015
Number of Post Offices migrated to CBS till

Name of the Circle




Madhya Pradesh











West Bengal
















Himachal Pradesh







Jammu & Kashmir


North East





The value of transforming

core banking systems
Creating agility, flexibility and long-term growth by
streamlining core operations
The value of transforming core banking systems

Banks around the world face huge economic and regulatory
challenges. New competitors are wooing customers with
non-traditional business models. New platforms could sideline
banks altogether. In addition, the pressure on banks to cut costs
and build income has not and will not let up.
If one thing keeps bankers from meeting these challenges, it
is the complexity of core banking systems. Complexity can
add up to 40 percent overhead to a banks operating expenses.

Estimates place the yearly cost of these systems in mature

markets at US$200 billion.

Their inflexibility can be a constant

drag on innovation and income growth.
Some banks have launched multi-million-dollar projects to
upgrade their core systems.

But bankers often question if and

how well those investments will pay off. Will they lower costs?
Will they raise revenues?
Research now shows that banks can speed time-to-value
and maximize ROIs. The key is to focus on certain key
competencies that yield the best financial benefits.

Next-generation banking platforms

offer a high degree of agility across different
business divisions, products, channels
and processes.
Jost Hoppermann, Forrester Research

The core of the challenge

Banks once commonly built core banking systems
around products, not customer needs. Over time, this
caused basic banking processes to depend on many
inter-related applications.
This may have worked in a more forgiving, less competitive
era. But no longer. New products, technologies and business
models are winning over once-loyal customers. As a Wal-Mart

executive told
The New York Times
, Were not a bank, but we
can serve a lot of types of functions you would see someone go
into a bank for.

To compete today, banks must become much more nimble.

They need to quickly meet marketplace threats and opportunities. Core systems cant be allowed to block change
and innovation. Isolated stacks of rigid processes must be
transformed into horizontal, closely integrated core systems.
Data needs to flow freely. Processes must be interoperable
if they are to drive better decisions and faster responses.

A path to greater agility

Restructuring data and processes is not a casual undertaking.
But it neednt require rip and replace. Banks can save many
legacy components. And they can start building processes
with modular elements they can quickly mix and match into
new, game-changing products and services.
Banks can benefit by breaking projects into stages geared
four critical competencies
outlined on page 3. This can
mitigate the risk of disjointed projects that only compound
the problem. And this can yield savings and revenue growth
even before the full project is finished. Those early benefits
can also help maintain the buy-in of key stakeholders

Comprehensive Core Banking Functionality

Designed for Future Growth
Oracle FLEXCUBE Core Banking helps banks overcome the challenges of intense competi
tion, reduced margins, and increased customer expectations by creating a unique competitive
advantage built upon improved profitability The and an extended customer reach.
Next-Generation Core Banking Solution Imperative

Fueled by an evolving business landscape and fierce competition, financial institutions must
adopt core banking technology that will enable strategic transformation without disrupting
current operations. These core systems need to interoperate with existing IT investments
to eliminate information silos and create an end-to-end service-based infrastructure. A wellconceived core banking migration will accomplish the following:

Replace legacy systems:

Old technology slows innovation and decreases productivity.
Banks need new systems that empower the enterprise through an integrated infrastructure
and processes aligned with strategic objectives.

Increase competitiveness:

The right core banking solution can help your bank quickly
deploy new products and lower costs to enhance your ability to compete.
Facilitate regulatory compliance:
Compliance is complex and expensive. The right
regulatory platform will lower costs through improved asset reusability, faster turnaround
times, and increased accuracy.

Improve information flow:

To improve the speed and accuracy of decision-making,
banks must deploy systems that streamline integration and unite corporate information
to create a comprehensive analytical infrastructure.

Optimize customer value:

Through a holistic core banking architecture, banks
can target customers with the right offers at the right time with the right channel
to increase profitability.

Create a service-oriented architecture (SOA):

A flexible, robust IT architecture
based on SOA is not optional. Banks must embrace SOA to survive.

Core Banking Transformation

Banks worldwide face an unprecedented set of challenges with increasing customer expectations,
mounting pressures on cost, new regulatory & compliance requirements, unrelenting competition
and a constantly evolving economic landscape. Moreover, non-traditional competition arising
from the test-bed of emergent technologies like mobile, cloud, social and Big Data pose unique
challenges to stay relevant and succeed.
Banks rely on Core Banking systems to innovate in the market-place as well as to standardize
operations. However legacy Core Banking platforms are inflexible and expensive to maintain,
posing unique challenges in terms of scalability, security and regulatory compliance. The risk of
ageing manpower with legacy knowhow is another significant risk to banks.

How Wipro Helps

Wipro, with its comprehensive 'Change the Bank' and 'Run the Bank' services complemented
with strong partnerships with industry leaders in Core Banking packages, is fully geared to be the
trusted partner in your Core Banking Transformation journey. Our proposition is augmented by a
comprehensive set of tools, methods, estimators and templates exclusive to the Core Banking
System Transformation projects.
We have a robust framework, ready templates and strong thought leaders who work closely with
the bank in building and executing the Core Banking Transformation strategy.

Core Banking System Integration Services

Wipro offers comprehensive Change the Bank services for:

Best of breed COTS solutions like Oracle FLEXCUBE, Temenos T24, Finacle and Misys
suite of products

Legacy and in-house customized Core Banking systems like Alnova and Hogan

These services include:

Program Management

Local Development

Requirement Gathering and Gap Analysis


Parameterization and Configuration

Multi-country roll outs

Data Migration


Quality assurance

Knowledge Management and End User Training

We offer various Run the Bank services leading to effective Core Banking execution and rollout. These services span operations, maintenance, implementation of updates and coordination
with Independent Software Vendors (ISVs).


Core Banking Solutions

Protect your core banking applications from transaction frauds and identity thefts.

Enable secure electronic transactions for core banking!

Transactions occurring between the networked branches of most banks are prime targets for security
attacks. Given the high value of transactions and increasing frequency of identity theft, having only
passwords and SSL-based security are often inadequate.
Enabling security for your core banking services can be challenging. Whether you are using legacy
core banking solutions or more modern, well documented and customized solutions, integrating new
security features to protect your core banking services can be time-consuming, costly, and frustrating.
In fact, the disadvantages of investing in an integrated security solution can extend beyond time and
cost factors.

Odyssey Snorkel
How Snorkel Works
Odysseys Snorkel suite of products provides core banking applications with a comprehensive set of
security functionality required to protect the applications from transaction frauds.
With strong two-factor authentication, channel security, page-level access control, digital signature
functionality and transaction integrity, Snorkel provides a truly comprehensive and cost-effective
solution that can be deployed plug-configure-play style to instantaneously enable security.
What is more, you can now enjoy the conveniences of a centralized security gateway without losing
control over your data and information.

Business Benefits
Snorkel can be deployed regardless of application architecture, server platform, and OS.
Supports all core banking applications including Finacle, BaNCS, QUARTZ, Quartz Securities,
Quartz Payments, e-Portfolio, Flexcube, Microbanker, Finware, Polaris Intellect Suite, SAP,
Fidelity, KASTLE, FinCraft, and others.

12 Best Practices for a Core Banking

Bankers who have recently completed or are in the midst of a core system replacement
share their tips for a successful migration.
Bankers often refer to core systems migrations as open heart surgery -- the vast platforms that
support all retail transactions are that critical to the life of a bank. Accordingly, the costs -- and
risks -- of core banking projects are high.
To help you improve the prognosis for your core banking modernization initiative, Bank Systems
& Technology asked some bankers who recently completed or are in the middle of a core
banking upgrade, as well as the analysts who help them, for their advice on what makes such a
project smooth and successful. Here are their top 12 tips:
Sponsor video, mouseover for sound
1. Cleanse data before the migration. "Data cleansing is something you have to do beforehand,"
insists Rudiger Schmidt, head of core banking international at Deutsche Bank, which is
implementing TCS BaNCS Core Banking for global transaction banking in a five- to six-year
project that began last year. "Clean up the data in the old system; don't expect the new system to
do it."
Getting basic information, especially account and customer data, in order is a critical first step,
argrees Stefan Besterman, senior manager at consultancy LECG (Devon, Pa.). "Firms need to
focus on mastering their data so they can aggregate and maintain control over all of this
information," he says.
Silicon Valley Bank ($14.8 billion in assets), which is running its legacy and new core banking
systems concurrently as it gradually performs its conversion module by module over five years,
had engineers ensure that its reporting and online delivery systems were getting the right
information from both its legacy and new core systems, according to Bruce Wallace, head of
global services. The Santa Clara, Calif.-based bank put all of its customer information files on its
new Oracle (Redwood Shores, Calif.) Flexcube core last year so it would have a single
repository even while some accounts remain on the legacy platform. When new data is entered in
one system, the other core is updated automatically.
2. Set a schedule and stick to it. "For a program like this, momentum is the most important thing;
as a result, schedule is important," says Dave Curran, program director of Commonwealth Bank
of Australia's (US$770 billion in assets) core banking modernization initiative. "These programs
are really big, and if you lose your schedule, you'll lose your budget and everything else."
Schedule drives cost, Curran points out. "In our case, it's a four-year program. If that four-year
program becomes a six-year program, it will cost 50 percent more, because the biggest cost is
people. If people work 50 percent longer, it will cost 50 percent more." The price tag for

Commonwealth Bank's four-year core banking project, which began in 2008, has been publicly
estimated at $580 million. The Sydney-based bank is converting its platforms to SAP for
Sticking to a schedule also improves decision making, Curran notes. "If the schedule is not
important, you could easily get to the point where you can't make decisions because you want to
have another discussion, another meeting, another steering group or conference call, and
meanwhile you've lost two or three weeks," he says, adding that the focus on keeping on
schedule moves everyone along. "That means occasionally you'll make some less-than-perfect
decisions. But you can tidy those up later rather than trying to build the perfect solution."
Evoking the common analogy, Curran warns, "You can't afford to leave the patient on the table
too long. If you're working on the heart and see something wrong with the liver, you might have
to get back to that later."
3. Create a high-level decision-making body to arbitrate between different points of view, such as
lines of business or operations and IT, advises Bart Narter, SVP of Boston-based analyst firm
Celent. The group -- which should include the heads of operations, IT, retail banking,
commercial banking and commercial lending -- should meet at least twice a month, and
decisions should be final and binding, he says. "If you're totally reengineering and creating a new
system that will affect all parts of the bank, you could go into a two-month spin cycle on a
certain issue," Narter notes. "You get senior people to meet once every two weeks and make
At Silicon Valley Bank, an executive steering committee that conducts periodic assessments of
the core banking migration includes executives from IT, product ops, the credit group, the front
office and the global team. It's chaired by Greg Becker, the bank's president, who makes final
deployment decisions. "Three key executives are intimately involved in the deployment and
execution of the program -- that's absolutely critical," relates the bank's Wallace.
Commonwealth Bank of Australia also has an executive steering committee for its core banking
project that's chaired by the bank's group chief executive and meets monthly. "We've had 39
meetings and he's only missed one -- because he was sick," says Commonwealth Bank's Curran.
"That's a clear example of priority setting."
4. Use a guinea pig. One bank in the Northeast U.S. reportedly acquired a smaller bank and
piloted its new core banking system at the acquired institution in order to work out the kinks
before conducting a full-scale rollout, according to an industry observer who requested
anonymity. Conduct this type of test before the new signage goes up and the main bank will be
insulated from complaints and criticism about early hiccups in the new software.
5. Create a reusable blueprint. Deutsche Bank has created a "migration factory" -- a set of
methodologies, tools and capabilities for migrating to or from any platform. According to
Deutsche's Schmidt, the bank has built a "storybook" of structured processes for migrating
checklists, command center structures, communications structures and all of the other changes
needed to facilitate a cutover from one system to another.

"We're formalizing it, documenting it and making it repeatable," says Schmidt, who adds that his
group is leveraging experiences from former migrations, reusing formerly created tools and
runbooks, and improving them. "Each and every defect we find in this migration will be later
reworked in the runback."
6. Don't try to do everything at once. "You should not try to put all the items on your wish list
into your requirements for the new system," Deutsche's Schmidt advises. "There will be some
users who will feel that if they don't put their wish list in now, they'll never get what they want.
But this is open heart surgery," he continues, recalling the common core migration theme.
"For the first transformation, reduce new functionality as much as possible -- just try to migrate
your existing business on the new platform," Schmidt adds. "Once you are on a new platform,
you're able to get to a new level of productivity, and then you can start implementing new
7. Create small subprojects that can deliver value along the road. To try to make the process as
seamless as possible for clients, Silicon Valley Bank is taking a modular approach to its core
banking conversion, migrating one piece at a time over the course of five years. It started with
foreign currency loan software, piloting it with a few existing and new clients. According to the
bank's Wallace, after deploying each module, the bank reassesses its strategy, looking at the
success of the deployment and what might have changed from a market or client perspective
from when the bank made its original assumptions.
"We have course-corrected a couple of times along the way," he relates. "Not because the
deployments didn't go the way we expected them to, but because certain dynamics or our original
assumptions had changed. We continue to reassess each time we do a deployment to make sure
we have the right prioritization." So far, the bank has been averaging two deployments a year,
with two and a half deployments planned for 2011 -- two major deployments with a "mini
release" of additional capabilities in between, Wallace says.
Commonwealth Bank of Australia, which started its core modernization with a customer data
integration project and a deposit program, sees its four-year modernization initiative as a series
of projects. Yet, "You've got to make sure you have regular releases to business," the bank's
Curran notes. "You can't disappear into the background for two or three years. Banks and
markets don't have that kind of patience."
8. Expect time and cost overruns. "I've never seen a core banking project go on time," contends
Celent's Narter. "Because it's such a large, complex project, there are always surprises, and
they're rarely pleasant."
9. Try to enable and retain existing IT employees, even if you're changing IT platforms. "Say
you're moving from an IBM mainframe to Unix and your IT staff only knows IBM," Narter says.
"It's incredibly demotivating to people to know that as soon as the project is done, they're going
to be let go." Instead, invest in retraining the best existing staff on the new system. "Among other
things, they understand the operations of the bank," Narter explains.

10. Have end users practice using the new system before official rollout. "They'll come up with
things that don't work right," points out Narter. End-user training on the new core system is also
important to user adoption and the ultimate success of the project, he adds.
11. Manage the migration strictly. "The cutover itself has to be a military-like operation to run
smoothly," Deutsche Bank's Schmidt says.
Commonwealth Bank of Australia's Curran points out that good governance is important at all
stages. At the "get fit before the operation" stage, Commonwealth worked to integrate all of its
customer service touchpoints, upgrade its customer service and Internet platforms, and drive
$200 million of annual spend out of IT budgets to help fund the core upgrade, he reports. In a
later phase, the migration will involve "cloud enablement of the organization" -- Commonwealth
plans both to buy services from the cloud and to make its services available in the cloud,
according to Curran. "You can only do that when you have the core, service orientation and
architecture right," he says.
12. Be prepared to quickly fix glitches in the new system. Half of the effort in deploying a new
core banking system with zero downtime is testing, Deutsche Bank's Schmidt asserts. "But at the
end, you won't be able to test everything, otherwise you'd need to replay, say, an entire year's
worth of transactions, and even then you haven't covered everything," he says. "Besides very
expensive testing, you have to be able to react fast to any problem after go-live, and you have to
be flexible and prepared for some manual workarounds."

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

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.
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.
(*To safeguard the interest of customers, Bank has placed certain restrictions on the amount of
transactions, which are handled through other branches under CBS. The details can be obtained
from the branch).

Department of Financial Inclusion & Banking Technology

Core Banking Solution (CBS) to Co-operative Banks

In one of the biggest initiatives towards institution building, NABARD has facilitated the process of

bringing the Co-operative Sector onto Core Banking Solution (CBS) platform. A total of 201 State and
Central Co-operative Banks with 6,953 branches from 16 states & 03 UTs of the country, viz. Punjab,
Haryana, Gujarat, Maharashtra, UP, Chhattisgarh, MP, Bihar, Karnataka, Tamil Nadu, Kerala,
Uttarakhand, Sikkim, Himachal Pradesh, Jammu & Kashmir, Arunachal Pradesh, Chandigarh,
Puducherry and Andaman & Nicobar joined the NABARD initiated Project for CBS in Co-operatives.
Two vendors, viz. TCS and Wipro, have implemented the ambitious project across the country. All the
201 banks with 6,953 branches under NABARD-facilitated CBS Project are fully on CBS. This includes
122 new branches which were directly opened on CBS platform.
Apart from the cooperative banks, Tamil Nadu Industrial Cooperative Bank (TAICO) has been taken
onboard for roll-out of CBS under the project.
The model followed in the initiative is Application Service Provider (ASP) model using the concept
of cloud computing. The roll out process is in the final stage and branches are being migrated on CBS
platform on a regular basis.
Now these century old banks have started functioning in the CBS environment at par with the
technological platform of the Commercial Banks and Regional Rural Banks and match up with these
institutions in providing similar kind of services in the hinterland of the country. These banks now
extend commensurate services to its existing and new clients keeping in sight the changing scenario
and expectation level of the clientele. In time, their clients would be in a position to receive various
Government incentives/ subsidies and also other financial inputs directly in their accounts maintained
with the co-operative banks.
Keywords:- Core Banking Solution, Co-operative Banks, CCB, StCB, CBS, Computer Lab, ASP,
Cloud Computing
Bringing the Co-operative Banks under Core banking Solution would provide the following advantages
Bring them at par with the technological platform of the Commercial Banks and also RRB and
match up with these institutions in providing similar kind of services in the hinterland of the
Transparency and regular reconciliation and balancing of books of account to arrest pilferage.
Once the Banks are on a technology platform they will be in a position to utilise technological
solution furthering the financial inclusion initiative in rural India
The customer of the Banks can avail facilities like Any Branch Banking, e-transfer of funds to
anywhere of the country, etc.
This will also enable GOI to transfer incentive/subsidy/other payments to the account holders

based on Aadhaar number.

Technological solution is expected to release staff members so that there will be more follow-up
with the customers and also help bring in new customers/ clients to the Banks thus improving
the business portfolio.

Nabard to set up common core banking infrastructure

for rural banks

KOLKATA: National Bank for Agriculture & Rural Development, or Nabard, has decided to create a
common core banking infrastructure for rural co-operative banks, which have been losing out heavily in
competition to commercial banks in the absence of modern banking facilities in their bouquet.
The development bank, which regulates rural credit cooperative banks, is even contemplating floating a
subsidiary or a separate division to carry this endeavour forward . This plan constitutes a part of Nabard's
repositioning exercise, which has been on for quite some time.

"Our effort aims at creating a level-playing field for cooperative banks in terms of modern banking
solution. Except for some stray attempts , most of these banks do not have a CBS platform," Nabard
executive director Prakash Bakshi told ET.
The country has a multi-tier rural co-operative credit structure with 31 state co-operative banks at the top
across states and some 370 central co-operative banks below them. They are active in small towns and
the interiors and cater mostly to the poorer section of the population. These banks control around 85% of
the co-operative credit in the country.
But as they fail to retain old depositors due to the lack of modern banking facilities, it becomes difficult for
them to sustain the growing farm loan demand. This has prompted Nabard to step in.

Under this initiative, Nabard will engage a common service provider for CBS implementation in
participating banks and build a common data centre and a disaster recovery centre for them.
"As we would aggregate the demand for CBS, the cost of engaging a service provider and building data
centres will get reduced ," Mr Bakshi said. Nabard has decided to shoulder the initial burden for building
the CBS infrastructure .
However, banks willing to participate will have to cough up Rs 10,000 per branch as earnest deposits and
they would need to pay for using the new CBS platform later on.
Nabard has written to all its constituents to join hands in this endeavour . "Banks with existing CBS
platform can also switch to our platform," said Mr Bakshi, who expects this scheme to get a concrete
shape by July this year.
It has started a search for engaging a COO and a chief risk officer for the project.
The CEO will be responsible for the planning, execution and supervision of CBS implementation across
co-operative banks participating in this scheme.


In simple way it is doing all banking operations of Branches and Head Office by
connecting to a central computer kept at DATA CENTRE WHAT IS CORE BANKING P.
R. Kulkarni, Managing Director, Fluent Consultants Pvt. Ltd., Pune 3
Working in TBA mode
In mere computerized functions each branch has its own computer and branch
functions are thus automated on that computer. This is called as Total Branch
Automation (TBA). Back up of each branch is kept at Head Office on tapes, CD
etc. Consolidation of data from different branches is done at Head Office at a
decided periodicity.
Core Banking - Basic concept
With technology advancement particularly in Tele Communication and Wireless
Communication it became possible to send data from one computer to another
computer. Taking advantage of this it was thought fit to connect branch computers
to a single computer at data centre and have all transactions of all branches
recorded live at one place. This concept is CORE BANKING

Core Banking - Business Change

As the single computer at data centre get live data from branches position of the
bank as a whole is available at one place at each moment. This system of
operations then brought total change in traditional banking operations. Many

repetitive functions at branches were taken at central place. This is called

business re-engineering in terms of shifting to core banking. This change brought
many advantages to bank and its customers and also changed customer service
Advantages of Core Banking Centralized Accounting
All the transactions of the bank directly impact the General Ledger and Profit and
Loss Account. This provides a real time total picture about the financial position and
situation of the bank This helps for timely effective decision making for financial
management, a very critical and dynamic function in todaysbanking.
Advantages of Core Banking Centralized Product Control & Monitoring
Centralization helps in better product analysis, monitoring and rollout. Aspects
like interest rate modifications, product modification and interest application can be
done centrally from one place of all the branches.

Director, Fluent Consultants Pvt. Ltd., Pune 7 Advantages of Core Banking

Centralized Product Control & Monitoring Centralization helps in better product
analysis, monitoring and rollout. Aspects like interest rate modifications, product
modification and interest application can be done centrally from one place for all
the branches. Bank can quickly respond to market scenario and customer needs.
This gives competitive
Advantages of Core Banking Introduction of Technology Based Services
Service channels such as ATM, either on-site or offsite, can be started. Cheque
Deposit Machines (CDM) can be installed. Such machine in WAN connectivity can
allow any customer to deposit the cheque for collection at any branch. Cheque
book printing machine can be installed at central location to give personalized
cheque books. Such machine in WAN connectivity can receivecommand from any
Advantages of Core Banking Centralized Customer Account Management
Any customer becomes the customer of the bank rather than of a branch. With
unique ID / Account Number the accounts of the customers can be viewed centrally
by the bank. As such, customer profile, details of products and services availed by
him and customer behavior about business of the bank can be well understood.
Such customer view gives the bank opportunity to decide directions for business
development andmarketing strategies.
Advantages of Core Banking Centralized Reporting

Presence of centralized data constantly live up-dated at any time ensures

comprehensive report / statement generation. This tremendously helps in decision
making as well as submission to various authorities. Operational efficiency of the
bank gets increased due to quick report generation forbank as a whole.
Advantages of Core Banking Centralized System Administration
Centralized system / I. T. administration enhances system security and user
management. In TBA mode man-power for I. T. administration is required at each
branch. But in core banking it is required only at one place. Thus reduction in manpower need and cost. Due to single point resource available I. Tmanpower is
utilized properly.
Advantages of Core Banking Advantages to Head Office
Consolidation of MIS / statements / reporting at one place reducing duplication of
tasks at branches and it is of real time. Supervision of branches on risk perceptions
possible as on going process. Frequent audits and timely control measures can be
initiated. Quick informal decisions on real time MIS
Advantages of Core Banking Advantages to Head Office
Faster and practically real time reconciliation of accounts. Centralized marking
and movement monitoring of NPA accounts. Centralized follow-up and coordination of overdue and NPA accounts. For statutory reporting and compliance
no need to wait for branch compliance
Advantages of Core Banking Advantages to Head Office
Better ALM, especially for short term assets and liabilities possible. Product-wise,
customer-wise, customer profile based analysis and decision making possible.
Analysis of data on any aspect of banking business and control issues gives scope
for keeping the bank professionally healthy.
Advantages of Core Banking Advantages to Credit Department
Reduced credit processing time for existing loan accounts as the Credit
Department gets information handy. For processing of new loan accounts the
information on product is available that facilitates proper decision. Real time credit
tracking by setting alerts about delays, deviations, penalties etc. Corrective
measures in credit portfolio can be quickly taken due to credit portfolio analysis.
Advantages of Core Banking Advantages to Accounts Department
Centralized real time General Ledger and Profit and Loss Account almost eliminates
accounting work. Greatly reduces paper work, inward communication needs and
work of tallying. Deadlines of statutory compliance and submissions are met in

time. Balance sheet of the bank available at any day, any hour, any moment.
Accounts Department can concentrate on policycompliance and reporting issues.
Advantages of Core Banking Advantages to I. T. Department
I. T. Department becomes the focused entity and back-bone of the operations of
the bank. Central data management and application reduces logistical problems
and reaction time for system changes and/or troubleshooting. Parameter settings,
interest application and such other works being done at one place avoid chances of
otherwise repetitive mistakes at different branches and then loadon I. T. Dept. for
rectification work.
Advantages of Core Banking Advantages to Customers
Customer can operate his account from any of the branch of the bank. More
service channels can be made available to the customer. Customer gets
immediate credit if the transaction is between the branches of the bank. Even
extension counters can provide all services to the customer Care
Advantages of Core Banking Advantages to Customers
Customer gets full attention and service satisfaction at the branches as the
branches are freed from all back office functions, clearing functions and almost all
accounting functions. Customer can get SMS alerts on his mobile or e-mail alerts
through net for transaction taking place in his account. This gives him comfort and
Advantages of Core Banking Advantages to Branch functionality With reduced
work at the branches they can focus on development of business, customer service
and attendance and meaningful liaison with customer for getting new business.
Since customer needs are known with proper analysis they can be well attended
even before their demands that boosts the image of bank as customer savvy. This
increases business and thereby profit.
Components of Core Banking Non-human Infrastructure
Software Hardware Data Centre / Disaster Recovery Centre Connectivity
devices Connectivity service providers Security equipments Uninterrupted
power supply arrangements Anti-virus / Fire-walls P. R. Kulkarni, Managing Director,
Fluent Consultants Pvt. Ltd., Pune 25
Banking Software Selection Check Points
Since when the vendor is in the field. Who are the promoters. Whether the
software is really ABB (Any Branch Banking i.e. Core Banking) or TBA (Total Branch
Automation). Present installations in ABB as well as TBA. What are optional
modules ready. Database (Oracle / DB2/any other)