DOCSLIB.ORG

Vivek College of Commerce

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Vivek College of Commerce Vivek college of commerce CHAPTER 1 1.1 INTRODUCTION Core Banking Solutions is new jargon frequently used in banking circles. The advancement in technology especially internet and information technology has led to new way of doing business in banking. The technologies have cut down time, working simultaneously on different issues and increased 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 are done. This software is installed at different branches of bank and then interconnected by means of communication lines like telephones, satellite, internet etc. It allows the user (customers) to operate accounts from any branch if it has installed core banking solutions. This new platform has changed the way banks are working. Now many advanced features like regulatory requirements and other specialized services like share (stock) trading are being provided. Core banking solutions are very helpful to SME industries. Core Banking Solution (CBS) is networking of branches, which enables customers to operate their accounts. And avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The Core Banking Page 1 Vivek college of commerce technologies have cut sown time, working simultaneously on different issues and increased 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 are done. This software is installed at different branches of bank and then interconnected by means of communication lines like telephones, satellite, internet etc. It allows the user (customers) to operate accounts from any branch if it has installed core banking solutions. This new platform has changed the way banks are working. 1.2 HISTORY OF CORE BANKING The major objectives of bank automation are better customer service, flawless book keeping and prompt decision-making that leads to improved productivity and profitability. The concept of bank automation started in the year 1981, but it was during the period 1984-1987 banks in India started the branch level automation, making use of the then available MSDOS based stand alone computers. This initiative was taken by the banks on the basis of “First Rangarajan Committee report” on bank computerization submitted in the year 1984. ALPMs (Advance Ledger Posting Machines) were the fashion in those days. However, the pace of bank automation was very slow in the banks primarily owing to the lack of trade union consensus on bank automation. Core Banking Page 2 Vivek college of commerce Another committee was in 1988 under the chairmanship of Dr. C. Rangrajan, the then Deputy Governor of RBI to slate down a perspective plan on automation of banks for a five year period. This paved way to the implementation of multi-user Total Branch Automation packages running on a LAN (Local Area Network, either on a Network or a UNIX operating system. With the implementation of TBA, banks started to offer the facilities of exclusive Customer Terminal, Single window transaction, on-line and off-site ATMs, Tele-Banking etc. But with the advent of new generation private sector banks in India during 1994-1996, the real era of bank marketing started and these banks started to offer anywhere and anytime banking facilities to its customers. This was possible for them mainly owing to the fact that they opted for the implementation of a WAN (Wide Area Network) based centralized banking solution rather than a LAN based branch solution to network their limited number of branch banking solution to network their limited number of branch outlets. The old generation banks in India hesitated to follow this banking fashion on account of its large network of branches on one hand and the then prevailing exorbitant IT cost on the other hand. But with the globalization and liberalization of Indian market and with the enactment of TRAI (with a mission to create and nurture conditions for growth of telecommunications in the country in a manner and at a pace which will enable India to play a leading role in emerging global information society) during the late nineties, there happened a drastic reduction in IT cost. Core Banking Page 3 Vivek college of commerce Improved telecommunication facilities and reduction in hardware as well as networking cost changed the mindset of the banks in India to try the CBS option. This also equipped them with the required technology products and services, as those offered by their new generation competitors. 1.3 MEANING AND DEFINITION Meaning Core means “Basic”, hence the basic services provided by the inter- networked branches of bank is called “Core Banking”. Core Banking is normally defined as the business conducted by a banking institution with its retail and small business customers. Many banks treat the retail customers as their core banking customers, and have a separate line of business to manage small businesses. Larger businesses are managed via the Corporate Banking division of the institution. Core banking basically is depositing and lending of money. Nowadays, most banks use core banking applications to support their operations where CORE stands for “Centralized Online Real-time Exchange”. This basically means that all the bank’s branches throughout the world. These applications now also have the capability to address the needs of corporate customers, providing a comprehensive banking solution. A few decades ago 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 datacenter only at the end of the day. Core Banking Page 4 Vivek college of commerce Normal core banking functions will include deposit accounts, loans, mortgages and payments. Banks make these services available across multiple channels like ATMs, Internet Banking, and branches. Definition Core banking is a general term used to describe the services provided by a group of networked bank branches. Bank customers may access their funds and other simple transactions from any of the member branch offices. Core Banking is normally defined as the business conducted by a banking institution with its retail and small business customers. Many banks treat the retail customers as their core banking customers, and have a separate line of business to manage small businesses. Larger businesses are managed via the Corporate Banking division of the institution. Core banking basically is depositing and lending of money. Normal core banking function will include deposit accounts, loans, mortgages and payments. Banks make these services available across multiple channels like ATMs, Internet banking, and branches. 1.4 WHAT IS CORE BANKING SOLUTION Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The Core Banking Page 5 Vivek college of commerce customer is no more the customer of a Branch. He becomes the Bank’s Customer. Thus CBS is a step towards enhancing customer convenience through Anywhere and Anytime Banking. Core Banking System or Core Banking Solution is a term that we hear very often these days. For IT and Banking folks, this doesn’t need any explanation but for those who want to know a bit, here’s a brief overview of what it means. Previously a bank’s core operations such as keeping a ledger of various transactions, maintaining customer information, interest calculation of loans and deposits, adjustments to accounts on withdrawal and deposits of funds etc. were done manually. With the advent of ICT (Information Communication Technology), efforts were done to automate various banking processes using software applications so as to make them simple, efficient, effortless and cost effective. Thus, the platform where ICT is used to perform the core operations of a bank, like those mentioned above, is known as Core Banking System. In core Banking System, software applications record transactions, maintain customer information, calculate interest on loans and deposits etc. The data, instead of huge ledgers, are stored in backend databases in digital form. Now, the same software can be installed in various branches of a bank and can be interconnected through the internet or telephone lines to from a core banking network of the bank. The advantage, a customer can operate on his account from any branch of the bank and if the bank owns Internet Banking or ATM facilities, then the customer can operate on his account from virtually anywhere. Core Banking Page 6 Vivek college of commerce Thus, Core Banking System has radically changed the way in which banks function. The greatest advantage of having a Core Banking System is that new features and functionalities can be easily added to the system that customers will have a whole lot of services that they can use. Electronic funds transfer between banks, online trading in the stock markets etc. are examples of this, which were unheard of in banks pre Core Banking System era. Core Banking and Run the Bank are synonymous for most part. Core Banking is the meeting point of the largest banking services augment namely Retail and Commercial Banking, cutting edge Information Technology and the advancing Communication Technology. It is the heart of a modern financial service organization and is all about providing the banking customers with the right products at the right time through the right channels 24 hours a day, 7 days a week through a multi location, multi branch network.
Load more

Recommended publications
  • Spring 2020 Core Banking
    2020 SPRING CUSTOMER SUCCESS REPORT CORE BANKING SOFTWARE CATEGORY CORE BANKING SOFTWARE OVERVIEW Today, banks do more than just taking deposits and providing loans. They offer a wide range of services and products, and their activities are termed Core Banking, which is managed by a centralized platform that enables customers to do transactions from any branch. CORE stands for "Centralized Online Real-time Exchange," which allows a bank’s branches to access programs from centralized data centers. Besides retail customers, core banking also addresses the needs of corporate clients to deliver a complete banking system. With a CBS, banks can improve their operations to address industry consolidation and customer demands, eliminate mistakes due to multiple entries, easily launch new financial products and make changes to existing ones, seamlessly merge self-service operations and back office data, and more. 2 Customer Success Report Ranking Methodology The FeaturedCustomers Customer Success ranking is based on data from our customer reference Customer Success Report platform, market presence, web presence, & social Award Levels presence as well as additional data aggregated from online sources and media properties. Our ranking engine applies an algorithm to all data collected to calculate the final Customer Success Report rankings. The overall Customer Success ranking is a weighted average based on 3 parts: Market Leader Content Score is affected by: Vendor on FeaturedCustomers.com with 1. Total # of vendor generated customer substantial customer base & market share. references (case studies, success stories, Leaders have the highest ratio of customer testimonials, and customer videos) success content, content quality score, and social media presence relative to company size.
    [Show full text]
  • The Premier Bank Limited
    Evaluating Customer Satisfaction in General Banking of The Premier Bank Limited Evaluating Customer Satisfaction in General Banking of The Premier Bank Limited Submitted To Mr. Muhammad Intisar Alam Senior Lecturer BRAC Business School BRAC University Submitted By Fahmid Jahan Nayeem ID- 08204063 BRAC Business School BRAC University Submitted in Partial Fulfillment for the Degree Bachelor of Business Administration (BBA) BRAC Business School BRAC University Date of Submission: December 17, 2012 Letter of Transmittal December 17, 2012 Mr. Muhammad Intisar Alam Senior Lecturer BRAC Business School BRAC University 66 Mohakhali, Dhaka 1212. Subject: Submission of Internship Report on “Evaluating Customer Satisfaction in General Banking of The Premier Bank limited” Dear Sir, It is a great pleasure to submit the report on “Evaluating Customer Satisfaction in General Banking of The Premier Bank limited.” which was assigned by you for the completion of my internship program. This report is intended to fulfill the essential requirement for the successful completion of BBA program. All the information is done with utmost sincerity and honesty. The observations and result of my study are embodied on this report. I have tried my best to match my theoretical knowledge with the practical field. I also confess that my report has some limitations because I am still student and I am in a process of developing my skills. So I hope that you will be kind enough to consider the limitations of this report. I would like to express my gratitude for the effort you have provided during my internship with all your valuable suggestions and directions which have helped a lot to enhance the quality of this report.
    [Show full text]
  • Annual Report 2015
    AKBANK AG ANNUAL REPORT 2015 REPORT ANNUAL AG AKBANK ANNUAL REPORT 2015 CONTENTS CONTACT INFORMATION 01 AKBANK AG IN BRIEF AKBANK AG - MANAGEMENT BOARD 04 FINANCIAL HIGHLIGHTS 08 SABANCI GROUP IN BRIEF Name Title 09 AKBANK T.A.Ş. IN BRIEF K. Banu Özcan CEO and Chairman of the Managing Board 14 VISION, MISSION AND STRATEGIES F. Hakan Elman Executive Vice President and Member of the Managing Board 16 MESSAGE FROM THE CHAIRMAN OF THE SUPERVISORY BOARD 17 MESSAGE FROM THE CEO AKBANK AG - DEPARTMENTS 20 REPORT OF THE SUPERVISORY BOARD 22 SUPERVISORY BOARD Name Group 23 REPORT OF THE AUDIT COMMITTEE Mustafa Korkmaz Senior Vice President – Treasury 26 AUDITORS REPORT Murat Gündoğdu Vice President – Corporate Banking 27 REPORT OF THE MANAGING BOARD FOR BUSINESS YEAR 2015 R. Didem Öget Senior Vice President & CFO – Financial Coordination & Risk Management 46 REGULATORY ENVIRONMENT Osman Yüce Senior Vice President – Information Technologies & Operations 49 CORPORATE BANKING & FINANCIAL INSTITUTIONS Haluk Soma Vice President – Credits 51 RETAIL BANKING 52 TREASURY HEAD OFFICE 53 CREDITS 54 OPERATIONS & INFORMATION TECHNOLOGY Akbank AG 55 RISK MANAGEMENT GOVERNANCE Taunustor 1 59 FINANCIAL STATEMENTS FOR THE BUSINESS YEAR FROM 1 JANUARY TO 31 DECEMBER 2015 60310 Frankfurt am Main Germany 63 NOTES TO THE FINANCIAL STATEMENTS FOR THE BUSINESS YEAR FROM T: +49 69 29717100 1 JANUARY TO 31 DECEMBER 2015 F: +49 69 29717188 CONTACT INFORMATION www.akbank.de AKBANK AG IN BRIEF 1 AKBANK AG 2015 ANNUAL REPORT Akbank AG is the successor institution of the Upon this merger, Akbank T.A.Ş. has become German branch of Akbank T.A.Ş.
    [Show full text]
  • South Indian Bank Ltd
    Experience Next Generation Banking Investor Presentation May - 2016 Safe Harbor No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions in India. This communication is for general information purpose only, without regard to specific objectives, financial situations and needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the Company and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation
    [Show full text]
  • SIB Hello Booklet.Pdf
    Greetings and welcome to South Indian Bank. Dear Sir/Madam, First of all let me thank you for choosing SIB as your preferred bank. We understand that, in this competitive market, while you had other choices, you have preferred us with great expectations, to meet your banking needs. We assure you that we have rededicated ourselves, to make you delighted and comfortable in banking, more than your expectations. Incorporated in 1929, SIB, during its 86 years of service to the nation, has been able to project itself as a vibrant, fast growing, service oriented and trend setting financial intermediary in the banking sector. We at SIB will continue to provide a secure, agile, dynamic and conducive banking environment to the customers, with commitment to values, ethics and unshaken confidence. Leveraging the advantage of a CORE banking network of over 823 branches spread across 30 States and Union Territories, we humbly strive to deploy the best technology, standards, processes and procedures, where customer convenience is of great importance. This Hand Book titled ‘Hello...’ contains certain key contact details, which will be of great help to you, while availing various services and products. For your ready reference, we have included the details of various personal banking products and services, being offered by your bank. User guides on ATM, Internet Banking and Mobile Banking services are also included herewith. Kindly get acquainted with the products and services and preserve this Hand Book for future reference. You may please visit our website www.southindianbank.com for further updates, terms & conditions, service charges etc. With your valuable suggestions, ideas and patronage, we are confident to emerge as the most preferred bank in the country.
    [Show full text]
  • Banking Is a Technology-Driven Business, and We Understand That A
    Banking is a technology‐driven business, and we understand that a cutting‐edge IT platform is a competitive advantage, a key driver of operational efficiency, and more importantly, a vital tool that will enable us to provide you with faster, better, and more responsive service—a definite PLUS! China Bank has acquired a new and more powerful core banking system for significantly greater computing power and enhanced capability and flexibility to improve service quality, optimize customer experience, manage risk and regulatory compliance more effectively, and easily adapt to changing customer demands and market trends. We are rolling out this new core banking system in all China Bank branches soon. Please go through this FAQ and know that we are doing everything we can to upgrade to the new system as seamlessly and efficiently as possible, so you, our valued client, will feel the PLUS factor. GENERAL 1. What is a core banking system? A core banking system is the deposit and loans system of a bank—the IT backbone of banking operations. 2. What will change? Essentially, the new core banking system will make transaction processing faster and more efficient. But what will be evident to you are the following: a) New passbooks for all passbook accountholders. For China Check Plus accountholders, the check number of Encashed/Inward Clearing/Debit On‐Us Checks will now be included in the passbook transaction details for easier account monitoring/reconciliation; b) New certificate of time deposit (CTD) for rolled over placements and new time deposit placements; and c) 12‐digit account numbers for new deposit accounts and 15‐digit account numbers for new loan accounts 3.
    [Show full text]
  • Unit – 4 Core Banking Solution Core Banking Solution
    Unit – 4 Core Banking Solution Core Banking Solution C H CBS BASICS AND A P T ITS WORKING E 1 R METHODOLOGY LEARNING OBJECTIVES What is Core Banking Solution Technology behind CBS Comparison of TBA (Total Branch Automation) with CBS Data Centre and Network Connectivity Functions of IT Department under CBS environment Modules of CBS Operations of CBS Branch Security and Controls at Data Centre and Branch 1.1 WHAT IS CORE BANKING SOLUTION? Core Banking Solution (CBS) is centralized Banking Application software. It has several components which have been designed to meet the demands of the banking industry. Core Banking Solution is supported by advanced technology infrastructure. It has high standards of business functionality. These factors provide the banks a competitive edge. There are different vendors in the market providing CBS. The software, (CBS) is developed by different software development companies like Infosys, TCS, Ifl ex Solutions etc., Each of the software has different names: Name of the Vendor : Software Infosys : Finacle TCS : Quartz Ifl ex Solutions : Flex Cube Apart from the above, some institutions have developed the software in house. The software resides in a Central application server which is located in the Central Offi ce Data Centre. The application software is not available at the branch but can be accessed from the branches. Along with Data base servers and other servers, application server is located at the Central Data Centre. 112 INFORMATION TECHNOLOGY CBS Basics and Its Working Methodology All of the branches of the bank are connected to the Central Data Centre as shown in Fig.1.1.1 Fig.
    [Show full text]
  • The Future of Retail Banking and the Case for Core Transformation Contents Introduction
    The Future of Retail Banking and the Case for Core Transformation Contents Introduction This paper argues that the widespread uptake of disruptive new technologies is exacerbating the pressures facing retail banking today, thereby driving a fundamental change in the structure of the industry i.e. digital- driven disintermediation of the banking value chain. Most European banks are not equipped for this change Introduction 03 because of the limitations of their aging legacy systems. Although banks have been investing in digital propositions in the front-end, they have been reluctant to embark on core systems replacement. At Temenos, The Technology Mega-Trends in Retail Banking 04 we believe that true digital transformation requires developing a coherent front-to-back proposition, built on a future-proof, modern core banking platform rather than on a complex web of legacy applications. Without Increasing Pressures on the Retail Banking Industry 06 a modern core, it is not possible to fulfill the emerging needs of the industry and to meet the heavy regulatory Structural Change - Disintermediation of the Retail Banking Value Chain 08 burden in an affordable way. The good news is that core banking transformations can now be executed easily and with acceptable levels of risk, because of the sophistication of packaged software now available The Retail Banking Model of the Future 09 and the lessons learnt and proven benefits delivered from successful transformations all over the world. The Current Reality 14 The Case for Core Transformation 15 Core Banking Transformations – Why (Not)? 17 Conclusion 19 About theAuthor 19 17% 6m 99.9% <15 Increase in RoE Customers STP Minutes By replacing core banking Onboarded in first year of Supporting seamless.
    [Show full text]
  • St. Mary's University Faculty of Business Department of Accounting
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by IDS OpenDocs St. Mary's University Faculty of Business Department of Accounting The Impact of Implementing Core Banking Technology on Commercial Bank of Ethiopia Profitability By:- Addis Alemayehu Samuel Mengesha Sara Tsehaye June, 2014 SMU Addis Ababa The Impact of Implementing Core Banking Technology on Commercial Bank of Ethiopia Profitability By:- Addis Alemayehu Samuel Mengesha Sara Tsehaye A senior essay Submitted to the Department of Accounting Business Faculty St.Mary's University in Partial Fulfillment of the Requirement for the Degree of Bachelor of ARTS in Accounting June, 2014 SMU Addis Ababa St Mary's University The Impact of Implementing Core Banking Technology on Commercial Bank of Ethiopia Profitability By:- Addis Alemayehu Samuel Mengesha Sara Tsehaye Faculty of Business Department of Accounting Approved by the committee of Examiners Department Head signature Advisor signature Internal Examiner signature External Examiner signature June, 2014 SMU Addis Ababa DECLARATION We the undersigned declare that this senior essay is our original work prepared under the guidance of Gebregziabher Hagos. All source of material used for the manuscript have acknowledgment. Name Signature Addis Alemayehu ________________________ Samuel Mengesha ________________________ Sara Tsehaye ________________________ Place of submission Addis Ababa Date of Submission June, 2014 Acknowledgements Glory to God and his mother for giving us courage and strength throughout our educational life. Special thanks go to our advisor Ato Gebregziabher Hagos for his constructive suggestions, guidance, and great advice in the writing of this senior paper, as well as for his devoting precious time in reading the paper.
    [Show full text]
  • South Indian Bank Achieves New Milestone One Lakh Crore Business
    Experience Next Generation Banking Investor Presentation October - 2016 Safe Harbor No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions in India. This communication is for general information purpose only, without regard to specific objectives, financial situations and needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the Company and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation
    [Show full text]
  • Implementation of Core Banking Systems (Cbs) in the Banks in India – with Special Reference to Urban Co-Operative Banks (Ucb)
    Vol.3 No.1 January 2015 ISSN: 2320-4168 IMPLEMENTATION OF CORE BANKING SYSTEMS (CBS) IN THE BANKS IN INDIA – WITH SPECIAL REFERENCE TO URBAN CO-OPERATIVE BANKS (UCB) J. Shifa Fathima Assistant Professor, Department of Commerce, Madurai Institute of Social Sciences, Madurai Abstract This paper gives an overview of Implementation of Core Banking Systems in the Banks in India. This study is based on Secondary data. A bank is an institution which deals with money and credit. It accepts deposit from the public, makes the funds available to those who need them, and helps in the remittance of money from one place to another. It is a financial institution that creates demand deposits, that is deposit account which are subject to withdrawal by the owner on demand and subject to transfer to a third party by means of a cheque, in fact a modern bank performs such a variety of functions that is difficult to give a precise and general definition of it. CBS stand for Core Banking System or Core Banking Solution. Core Banking System is another way of saying the core functions of a bank. These functions represent the essential (core) business of banking. Because of the plethora of services banks now provide, it is easy to forget that the root of banking is the accepting deposits and lending money the definition of core banking may have been mudded by the emergence of package computer solution which combine core banking functions, with other elements of a bank’s operation but at the most basic level core banking manages financial transactions and their impact on the accounts of each customers.
    [Show full text]
  • SGA SIB Investor Presentation Q3 FY18.Pdf
    Investor Presentation January - 2018 Safe Harbor No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions in India. This communication is for general information purpose only, without regard to specific objectives, financial situations and needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the Company and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation can not be copied and/or
    [Show full text]