Core Banking Solution (CBS) is a banking service provided by a group of networked bank branches where customers may access their bank account, perform basic transactions, and avail banking services from any of the branch of the Bank on CBS network, regardless of where he maintains his account. The customer is no more the customer of a Branch. He becomes the Bank's Customer
A core banking solution must be technologically sophisticated and serve future business objectives. Core Banking is a flexible, powerful, long-term solution that will help you transform your bank into a next-generation financial institution.
For the bank, which implements CBS, the customer becomes the bank’s customer instead of customer of particular branch.
Execution of Core banking system across all branches helps to speed up most of the common transactions of bank and customer. In Core banking, the all branches access banking applications from centralized server, which is hosted in secured datacentre. Banking software/application performs basic operations like maintaining transactions, balance of withdrawal & payment, interest calculations on deposits & loans etc. These banking applications are deployed on centralized server & can be accessed using internet from any location.
Now a day, the use of Information Technology (IT) is must for the survival & growth of any organization and same applicable to banking industry also. By using IT in any industry, banks can minimize the operation cost; also, banks can offer products & services to customers at competitive rates.
CBS is required:
Basic elements of CBS that helps customers are:
Benefits of Core banking –
Core banking solutions are beneficial to both banks as well as customers.
Benefits For Customers
Benefits For Banks