Professional Documents
Culture Documents
Banking analytics including risk analysis, profitability analysis and provisions for capital
reserve allocation and collateral management
Banking channels such as teller systems, side counter (sales) applications, mobile
banking and online banking solutions
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
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.
Consulting
System Integration
Multi-Country Rollouts
Implementation Consulting
Performance Management
Development
Requirement Management
Solutions
Development,
Benefits
Well defined risk and governance model with the help of our experienced
strategy consultants
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.
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
transformation
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.
History
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.
CBS increases employee efficiency and reduces human error and fraud.
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.
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
NYSE.
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.
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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
both.
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:
enhancing productivity
mitigating risk
expanding channels-to-market
lowering costs
driving growth
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
Core processing
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:
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.
Channel
Transactions available
Cash Deposit
Cash Withdrawal
DD/ PO issuance
Date
Channel
Transactions available
Cash withdrawal
Balance inquiry
Funds Transfer
Generate password
FD/ RD Creation
Balance inquiry
ATMs
Internet
Banking
iMobile
Date
Channel
Transactions available
transfer services
Date
May 9, 2015
Channel
Date
May 9, 2015
Channel
May 9, 2015 on
Saturday post
12 noon
ATMs
Internet
Banking
FD/ RD creation
PIN regeneration
Date
May 9, 2015
Channel
Tax Payments
Form 15 G/H
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
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.
May 9, 2015
Channel
Transactions available
Cash Deposit
Cash Withdrawal
DD/ PO issuance
Branches
Date
Channel
ATMs
Internet
May 9, 2015 on
Banking
Saturday post 12
noon
iBizz
Phone
Banking
Transactions available
Cash withdrawal
Balance inquiry
Funds Transfer
Generate password
FD creation
Account statement
Balance inquiry
Balance inquiry
Status of deliverables
Date
May 9, 2015
Channel
Branches
May 9, 2015
on Saturday
post 12 noon
ATMs
Internet
Banking
FD/ RD creation
PIN regeneration
Tax payment
Bill payments
Date
Channel
iBizz
Phone
Banking
Statement Request
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
08:00 PM
07:50 PM
08:00 PM
07:50 PM
07:50 PM
08:00 PM
07:50 PM
08:00 PM
07:50 PM
08:00 PM
07:50 PM
Karnataka
08:00 PM
07:50 PM
08:00 PM
07:50 PM
Delhi VAT
08:00 PM
07:50 PM
08:00 PM
07:50 PM
08:00 PM
07:50 PM
State Name
Actual Cut-off
System Cut-off on
May 8
08:00 PM
07:50 PM
12:00 AM
11:50 PM
Meghalaya
12:00 AM
11:50 PM
12:00 AM
11:50 PM
AP (Online)
12:00 AM
11:50 PM
12:00 AM
11:50 PM
12:00 AM
11:50 PM
DGFT
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
12:00 AM
11:50 PM
https://www.scribd.com/doc/62856199/17/HISTORY-OF-CORE-BANKING-SYSTEM-INTHE-WORLD
Application Software
System
The Top 3
Top 10, 1 to 3
T24; T24 for Microfinance
and Community Banking
(MCB) formerly eMerge;
GLOBUS; TEMENOS
CoreBanking (TCB)
TEMENOS
Infosys Technologies
Finacle
Top 10
ranked 4 to 10
Fiserv
ICBS (International)
| Signature by
Fiserv, - Fiserv CBS
(US);
Basys/Metabank;
Catapult; Premier;
Acumen
TCS BaNCS
Universal, Retail,
Private, Wholesale
core banking and
treasury suite (xref.
FNS b@ncs-24, TKS
More
Information
Link
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)/
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
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 Analyz
Finacle Lite
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
Finacle.[11]
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
economy.[16]
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
company.
Finacle also won a deal at Qantas Credit Union for deployment of the solution on a private cloud.
[18]
Infosys - Finacle
Overview:
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
RDBMS
Clients:
(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
ICBS.
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.
Following table shows the status of CBS migration in India Post up to 13.03.2015
Number of Post Offices migrated to CBS till
13.03.2015
S
L
1
2
3
4
5
6
7
8
9
1
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0
2
1
2
2
HO
SO
Total
Tamilnadu
Rajasthan
Karnataka
Uttarpradesh
Maharashtra
Andhrapradesh
Delhi
Kerala
Madhya Pradesh
94
48
58
69
58
94
11
47
39
425
295
278
229
107
2
54
0
0
519
343
336
298
165
96
65
47
39
Odisha
35
36
Assam
17
19
36
West Bengal
33
33
Punjab
20
10
30
Bihar
22
23
Gujarat
20
20
Haryana
14
15
Himachal Pradesh
14
14
Jharkhand
13
13
Chhattisgarh
Uttarakhand
North East
725
1423
2148
Total
Introduction
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.
1
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.
5
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:
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.
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
Program Management
Local Development
Integration
Data Migration
Upgrades
Quality assurance
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).
Home
Protect your core banking applications from transaction frauds and identity thefts.
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.
www.inntron.com/core_banking.html
WHO HAS PROVIDED A TRAINING (CBS)
www.banktech.com/core-systems/12-best...a-core-banking.../229402439
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
Banking.
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
decisions."
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
functionalities."
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."
To make enquiries about the balance; debit or credit entries in the account.
To deposit cheques / cash into account of some other person who has account in a CBS
branch.
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).
https://www.nabard.org/english/Core_Banking_Solutions.aspx
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
country.
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
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.
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
security
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)
http://www.prkulkarni.com/pdf/CORE_BANKING.pdf