The processes of banks to achieve centralized and smooth

The globalization process in the economy has given
reason for the banking sector to rethink its existing strategies. The
penetration of computers and growth in Internet usage is making the clients ache
for more and more services and more convenience. Previously a bank’s core
operations were done manually such as preparation of ledger of various transactions,
maintaining information of all types of customers, calculation of interest on loans,
advances and deposits, various adjustments to accounts on withdrawal and
deposits of funds etc. With the arrival of Information Communication Technology
(ICT), 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 is known as
Core Banking System. 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 and 7 days a
week through a multi-location, multi branch network. 

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. Core banking solutions (CBS) help automate front-end and back-end
processes of banks to achieve centralized and smooth processing. These
applications offer a single view of the customer and facilitate automation
across delivery channels. The concept of CBS has helped banks become one-stop
shops for all the financial needs of retail and corporate customers by offering
multiple services under one roof. With CBS implementation, customers can now
access their accounts from any branch of their bank, irrespective of which
branch the account was opened at. 

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