CORE BANKING

SOLUTIONS
GROUP MEMBERS
46- Shashank varma
47- Aditya asa
4!- Chira" #ra
4$- %hava& #ra
'(- Unnati Ladha
')- *a"r+ti #ra
C#r, -ankin"
Core Banking is normally defined as the business conducted by a banking institution
with its retail and small business customers. Many banks treat the retail customers as
their core banking customers, and have a separate line of business to manage small
businesses. Larger businesses are managed via the corporate banking division of the
institution. Core banking basically is depositing and lending of money.
Nowadays, most banks use core banking applications to support their operations where
CO! stands for "centrali#ed online real$time e%change". &his basically means that all
the bank's branches access applications from centrali#ed datacenters. &his means that
the deposits made are reflected immediately on the bank's servers and the customer
can withdraw the deposited money from any of the bank's branches throughout the
world. &hese applications now also have the capability to address the needs of
corporate customers, providing a comprehensive banking solution.
( 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 )!o*+.
Normal core banking functions will include deposit accounts, loans, mortgages and
payments. Banks make these services available across multiple channels
like (&Ms, ,nternet banking, and branches.
Core banking solutions
Core banking solutions are banking applications on a platform enabling a phased,
strategic approach that is intended to allow banks to improve operations, reduce costs,
and be prepared for growth. ,mplementing a modular, component$based enterprise
solution facilitates integration with a bank's e%isting technologies. (n overall service$
oriented$architecture )-O(+ helps banks reduce the risk that can result from manual
data entry and out$of$date information, increases management information and review,
and avoids the potential disruption to business caused by replacing entire systems.
Core banking solutions is new .argon fre/uently used in banking circles. &he
advancement in technology, especially ,nternet and information technology has led to
new ways of doing business in banking. &hese technologies have cut down time,
working simultaneously on different issues and increasing efficiency. &he platform
where communication technology and information technology are merged to suit core
needs of banking is known as core banking solutions. 0ere, computer software is
developed to perform core operations of banking like recording of
transactions, passbook maintenance, interest calculations on loans and deposits,
customer records, balance of payments and withdrawal. &his software is installed at
different branches of bank and then interconnected by means of communication lines
like telephones, satellite, internet etc. ,t allows the user )customers+ to operate accounts
from any branch if it has installed core banking solutions. &his new platform has
changed the way banks are working.
1artner defines a core banking system as a back$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$processing capabilities, with
interfaces to general ledger systems and reporting tools. -trategic spending on these
systems is based on a combination of service$oriented architecture and supporting
technologies that create e%tensible, agile architectures.
Thus core banking components include:
Interest calculations
Processing of cash deposits and withdrawals
Processing of incoming and outgoing remittances, cheques, etc.
Customer management
Customer account management
Definition of the banks products product management! including such things as
minimum balances, interest rates, number of withdrawals, etc.
Interest rate definition
Customers standing instructions
"aintaining records of all financial transactions
# packaged retail core banking s$stem might include functions that are closel$ related to
core banking acti%ities. &o a package ma$ include such functions as:
Processing of applications for loans recei%ed from branches, etc. called loan
origination!
'ranch management, often including facilities for maintaining teller cash drawers,
etc.
Cheque book ordering
Internet banking
'anks can ha%e differences in the t$pe of business that the$ conduct. The$ ma$ for
e(ample be in retail banking the t$pe of banking that is seen in the high street!, or be in
wholesale banking the bank)to)bank market often referred to as the inter)bank market! or
securities trading the bu$ing and selling of stock, shares or go%ernment debt instruments!.
#s a result their *core businesses can be considerabl$ different. Their core banking s$stem
will therefore reflect the t$pe of business of the bank and be either:
+etail banking
Commercial banking
,holesale banking
Treasur$ banking
Pri%ate banking
# packaged retail core banking s$stem might include functions that are closel$ related to
core banking acti%ities. &o a package ma$ include such functions as:
Processing of applications for loans recei%ed from branches, etc. called loan
origination!
'ranch management, often including facilities for maintaining teller cash drawers,
etc.
Cheque book ordering
Internet banking
'enefits of core banking to customer
#ll C'& branches are inter)connected with each other. Therefore, Customers of C'&
branches can a%ail %arious banking facilities from an$ other C'& branch located an$ where
in the world. These ser%ices- are:
To make enquiries about the balance. debit or credit entries in the account.
To obtain cash pa$ment out of his account b$ 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
C'& branch.
To get statement of account.
To transfer funds from his account to some other account 0 his own or of third part$,
pro%ided both accounts are in C'& branches.
To obtain Demand Drafts or 'ankers Cheques from an$ branch on C'& 0 amount
shall be online debited to his account.
Customers can continue to use #T"s and other Deli%er$ Channels, which are also
interfaced with C'& platform. &imilarl$, facilities like 'ill Pa$ment, I)'ob, ")bob etc.
shall also continue to be a%ailable. 'ank is in the process of launching Internet)
banking facilit$ shortl$.
#ll these aim to pro%ide con%enient, efficient, and high qualit$ banking e(perience to the
customers, comparable to world class standards.
Ov,rvi,. #/ 0#r, -ankin" s#&+ti#ns
and th,ir 1r#vid,rs
Package Provider
(valo/ Banking -ystem (valo/ 1roup
Bank2usion 3niversal Banking Misys
C-B Natech
Misys !/uation Misys
Misys Midas 4lus Misys
2inacle ,nfosys
C2&$Bank Center of 2inancial &echnologies )C2&+
(lnova 2inancial -olutions (ccenture 5 (lnova
&C- BaNC- &ata Consultancy -ervices )&C-+
Bankway 2idelity National ,nformation -ervices )2,-+
Corebank 2idelity National ,nformation -ervices )2,-+
-(4 Banking -ervices -(4 (1
2L!6C3B! Oracle 2inancial -ervices -oftware
*,1,B(N7 Oracle 2inancial -ervices -oftware
0ogan Computer -ciences Corporation
,nsite Banking -ystem (utomated -ystems, ,nc.
,CB( ,nfopro -dn Bhd
4rofile )software+ )formerly
-anche# 4rofile+
2idelity National ,nformation -ervices )2,-+
-(B 5 -(M,C -(B
-2B 5 -CB 3N,-8-
-ignature )software+ 2iserv
-ystematics
2idelity National ,nformation -ervices )2,-+
)formerly -ystematics, ,nc5 (lltel+
&!M!NO- &9: &emenos 1roup
Core-oftt, -u;ikas ;-oft Corporation
<hile many banks run core banking in$house, there are some which use outsourced
service providers as well. &here are several -ystems integrators like (ccenture, ,BM
and 04 which implement these core banking packages at banks.