Basic Knowledge about CORE BANKING SOLUTIONS

2. CORE BANKING SOLUTION(CENTRALIZED
ONLINE REAL-TIME EXCHANGE)
• Core Banking Solution (CBS) is centralized Banking Application
software.
• It has several components which have been designed to meet the
demands of the banking industry.
• Core Banking Solution is supported by advanced technology
infrastructure.
• It has high standards of business functionality. These factors
provide the banks a competitive edge.
• Principle of CBS- “Customer is no longer customer of branch,
but a Customer of the BANK.”

3. TBA(TOTAL BRANCH AUTOMATION) VS CBS
• Branch based
• LAN
• Branch wise EOD
• Decentralized Interest
and charges application
• Version incompatibility
• Amalgamation required
for bank wise report
• Less costly
• Branch wise database
• Branch level Operator, DBA
• Centralized Solution
• WAN
• Centralized EOD
• Centralized application
of interest & charges
• Bank wise same
version
• Centralized report for
Bank as a whole
• High initial cost
• Bank wise database
• Bank level DBA,

4. COMPONENTS OF CBS- SERVERS

5. SERVERS
• Application Servers - Hosts the core banking application
• Database Servers- Entire data of the bank - Master data
• ATM Server-ATM account holder details – ATM Switch
• Internet Banking Server Database Server- stores username &
password of all the Internet banking customers – located in
DMZ
• Internet Banking Application Database Server- Processes internet
banking service requests
• Web server
• Anti-virus/ Anti-malware server- All servers updated with latest
anti-virus
• Proxy Server-Type of Firewall that provides Network Security and
prevents malicious entry into network – located in DMZ
• Mail/ Exchange Server
Internet Banking = IBDS+ IBAS+
Central Db server+ Web server +
Middleware

6. CORE BANKING NETWORK

7. Technology of CBS
 Every Transaction happens at Centralized Data Centre
 A strong secure Communication infrastructure
 Secure Network (Restricted Domain)
 Closed User Group
 Various Interfaces – Middleware
 VLAN, Firewall, Intrusion Detection System, Intrusion
Prevention System
 24X7 Connectivity
Functions of CBS
 Deposits Loans
 Advances Withdrawals
 Bills & Remittances New Accounts
 General Ledger Mobile Banking and
ATM

8. CORE BANKING SYSTEM
Data Centre
Single Location where Data (information)
is maintained for all the branches
which
are on CBS

9. OPERATIONS OF CBS
 All branches are directly connected to Data Centre
 All transactions are happening at the servers in Data
Centre
 No separate applications & servers are available at
branches
 Branch users are created through centralized user
creation process
 No password/ID should be shared with anyone at any
circumstances
SECURITY of CBS

10. ADVANTAGES OF CBS
 Transparency of financial institutions.
 Centralized Accounting
 Centralized product control and monitoring
 Introduction of Technology based services
 Centralized customer account management
 Centralized System Administration and
Reporting
 ATM, Interest Banking, Mobile Banking,
Payment Gateways(UPI) etc. are available.
 Accuracy in transactions & minimization of
errors,Frauds.
 Banking Services = 24/7 * 365

11. DISADVANTAGES OF CBS
 Excessive reliance on Technology
 High Initial Costs
 Failure in Computer system cause Network and
Server breakdown.
 Lack of Data Security leads to Data breach by
Hackers.

12. Vendors of CBS technology
• Infosys,-Finacle
• TCS- Quartz
• Iflex Solutions- Flex Cube

13. CONCLUSION
Technology in banking has come a long way.
CBS helps banks in providing disruption free
Digital Services to Customers. The customer can
perform all the Functions from opening an A/c to
closing an A/c under one umbrella quickly ,easily
and with less cost.
To prevent Banking Frauds and to ensure
SECURITY in Banking system a new Technology
BLOCKCHAIN is emerging. Application of
Artificial Intelligence, Machine Learning and
IOT in banks will take INDIAN BANKING sector to
the next level.