CORE BANKING SOLUTIONS ( CBS )

CORE BANKING SOLUTIONS
Core Banking Solutions (CBS) or Centralised Banking Solutions is the process which is
completed in a centralized environment i.e. under which the information relating to the
customer’s account (i.e. financial dealings, profession, income, family members etc.) is stored in
the Central Server of the bank (that is available to all the networked branches) instead of the
branch server. Depending upon the size and needs of a bank, it could be for the all the
operations or for limited operations. This task is carried through an advance software by making
use of the services provided by specialized agencies.
Due to its benefits, a no. of banks in India in recent years have taken steps to implement the
CBS with a view to build relationship with the customer based on the information captured and
offering to the customer, the customised financial products according to their need.
Advantages: The CBS process is advantageous both to the customers and the banks in the
following manner:
Customer:
• Transaction of business from any branch, ATM that offers him anytime anywhere banking
facility.
• Lower incidence of errors. Hence accuracy in transactions.
• Better funds management due to immediate availability of funds.
Banks:
• Standardisation of process within the bank.
• Better customer service leading to retention of customer and increased customer traffic.
• Availability of accurate data & Better use of available infrastructure
• Better MIS and reporting to external agencies such as Govt., RBI etc.
• Increased business volume with better asset liability management and risk management