Core Banking system is the sum total of all the information technology components that enable a bank to manage its core business activities in a centralised model. The core banking activities include round the clock processing of all the products, services and information of a bank.Under CBS, a bank must also be in a position to offer the basic banking services to its customers on a 24/7/365 model. Thus CBS is a step towards enhancing customer convenience through anywhere and anytime banking.
The major CBS Components
The major IT components of CBS include a banking application software, various hardware components and a network infrastructure that facilitate a distributed front end banking operations and a centralised data processing at the back end.
CBS is a banking solution (not a branch banking solution) and hence it is implemented at a central location to which various offices and service outlets of the bank are connected. The customer is no more the customer of a bank’s branch but that of the bank itself. The software components used in CBS must take care of almost all the core banking activities of the bank.
Post a Comment