The globalization process in the economy has givenreason for the banking sector to rethink its existing strategies. Thepenetration of computers and growth in Internet usage is making the customerscrave for more and more services and more convenience. Previously a bank’s coreoperations such as keeping a ledger of various transactions, maintainingcustomer information, interest calculation of loans and deposits, adjustmentsto accounts on withdrawal and deposits of funds etc.
were done manually. Withthe advent of ICT (Information Communication Technology), efforts were done toautomate various banking processes using software applications so as to makethem simple, efficient, effortless and cost effective. Thus, the platform whereICT is used to perform the core operations of a bank is known as Core BankingSystem. It is the heart of a modern financial service organization and is allabout providing the banking customers with the right products at the righttime through the right channels 24 hours a day, 7 days a week through amulti-location, multi branch network. Thus, Core Banking System has radicallychanged the way in which banks function. The greatest advantage of having aCore Banking System is that new features and functionalities can be easilyadded to the system that customers will have a whole lot of services that theycan use.
Electronic funds transfer between banks, online trading in thestock markets etc. are examples of this. Core banking solutions (CBS) help automate front-end and back-endprocesses of banks to achieve centralized and smooth processing. Theseapplications offer a single view of the customer and facilitate automationacross delivery channels. The concept of CBS has helped banks become one-stopshops for all the financial needs of retail and corporate customers by offeringmultiple services under one roof. With CBS implementation, customers can nowaccess their accounts from any branch of their bank, irrespective of whichbranch the account was opened at.