Using Core Banking Solution (CBS) banks can provide all their services like ATM, debit cards, tele-banking, internet banking, etc., through a single channel. CBS helps connect all branches and offices to the central host. It helps manage the enormous data under the Basel II environment, besides helping banks comply with evolving supervisory practices. Despite the huge benefits, some banks have failed to implement CBS due to the fear of complexities in operations and the massive costs involved.
No other sector of the economy is more affected by the spirit of globalization and liberalization than the financial sector in general and the banking sector in particular. In the era of liberalization and financial reforms, banks and financial services are about information and competitiveness. And we can see the change in the mindset coming on at an inspiring pace. All leading PSU banks have already started investing sizeable amounts in technology to match the private sector banks.
Most PSU banks are actively looking at centralized core banking solutions as a tool for their future business growth. ATMs are being looked upon as the preferred way to expand retail presence. Multiple channels of banking are getting integrated. Banks are now looking to provide a "one-view" solution to customers across all service lines. Operationally, the banks are looking at advanced solutions to handle areas like cash and treasury management and putting risk management solutions in place.
Core Banking Solution is a model in which all branches of a bank are connected to the central host. Multiple services like ATM, ABB, debit card, tele-banking, internet banking, mobile banking, etc., are provided through a single channel. The process ensures connectivity of identified branches, service branches, regional offices, zonal offices and central office departments. Putting in place a core banking system is perhaps the most complex IT project a bank can undertake. |
