What is Core Banking Solution?
Core Banking Solution also known as CBS is a software that connects a network of bank branches. This network allows customers to manage and use various banking facilities across the world. All the branches of the bank access these applications from a centralized server which is hosted in a secured data center. CBS makes it easier for consumers to transact, as there is no location barrier. It is also available at any time which is highly beneficial in a 24X7 environment. Through this network, one can execute the transaction from anywhere. CBS has eliminated those days of waiting in long queues for customers by providing them the ability to conduct transactions at their ease. Core banking solution has helped the bank and the customer in numerous ways. It speeds up the transaction process which was a concern for the customers. CBS has helped in the growth of banks as they can now provide various value added services to both retail banking customers and corporate clients. Automated Teller Machine (ATM), internet banking, mobile banking, NEFT, kiosk, account management, interest calculation and management, and customer relationship management activities are some of the basic elements of core banking solutions. The implementation of CBS has simplified the banking process, which has benefitted customers as well as banks. Once the bank adapts CBS the customer becomes the bank’s customer instead of remaining a customer of a particular branch. It has expanded the presence of banks in remote and rural areas. Hence, the transfer of funds from the cities to villages and vice versa has become a simple process. CBS services such as internet and mobile banking have sped up the transaction process which also has increased the loyalty of the bank’s customers. The 24X7 availability has helped banks gain the trust of their customers and also gain new clientele. For the banks, utilization of this software has standardized and streamlined their process. It has helped minimize human errors. There is an improvement in documentation as all data is stored and archived in the centralized database. MIS reports and other databases has enabled customer support to solve queries in no time, which increases customer satisfaction. CBS aids banks in maintaining ongoing products and services. It also gives them the ability to introduce new financial products. Most importantly Core Banking Solution has pushed banking to the next level in a digitally enabled society.