What Is Core Banking Solution (CBS) ?
Today Banking as a business has grown tremendously and transformed itself from only a deposits taking and loan providing system to an institution which provides an entire gamut of products and services under a wide umbrella. All such activities commenced by a bank is called Core Banking. As per pure definition Core banking refers to a centralized system established by a bank which allows its customers to conduct their business irrespective of the bank’s branch. Thus, it removes the impediments of geo-specific transactions. In fact, CORE is an acronym for “Centralized Online Real-time Exchange”, thus the bank’s branches can access applications from centralized data centers. Other than retail banking customers, core banking is now also being extended to address the requirements of corporate clients and provide for a comprehensive banking solution.
Core banking solutions offer the following advantages to the bank:
Improved operations which address customer demands and industry consolidation Errors due to multiple entries eradicated Easy ability to introduce new financial products and manage changes in existing products Seamless merging of back office data and self-service operations.