INTRODUCTION

Core banking is a banking services provided by a group of networked

bank branches where a customers may access their bank account and
perform basic transactions from any of the member branch offices.
Core banking is often associated with retail banking and many banks treat
the retail customers as their core banking customers, and have a separate
line of business to manage small businesses. Larger businesses are managed
via the Corporate banking division of the institution. Core banking basically is
depositing and lending of money.
Normal core banking functions will include transaction accounts, loans,
mortgages and payments. Banks make these services available across
multiple channels like ATMs, Internet banking, and branches.
Core banking is defined as the sum of all IT-components that enable banks to
manage their basic financial products and services (such as account and
client data, investments, credits, mortgages, payments and cards
transactions).
Especially in the typical off-shore banking centers core banking systems are
often the preferred IT-solutions. If such a system is to be deployed in a new
jurisdiction or if the corresponding functionalities have to be developed for
new off-shore locations, the software provider has to be involved in the
project.

History
Core banking became possible with the advent of computer and
telecommunication technology that allowed information to be shared
between bank branches quickly and efficiently.
A few decades ago it used to take at least a day for a transaction to reflect in
the account because each branch had their local servers, and the data from
the server in each branch was sent in a batch to the servers in the data
center only at the end of the day (EoD).
Nowadays, most banks use core banking applications to support their
operations where CORE Banking may stand for "centralized online real-time
electronic banking". This basically means that the entire bank's branches
access applications from centralized data centers. This means that the
deposits made are reflected immediately on the bank's servers and the
customer can withdraw the deposited money from any of the bank's
branches throughout the world. These applications now also have the
capability to address the needs of corporate customers, providing a comprehensive
banking solution.

Software solutions
Core banking solutions are new jargon frequently used in banking circles. The
advancement in technology, especially Internet and information technology
has led to new ways of doing business in banking. These technologies have
cut down time, working simultaneously on different issues and increasing
efficiency. The platform where communication technology and information
technology are merged to suit core needs of banking is known as core
banking solutions. Here, computer software is developed to perform core
operations of banking like recording of transactions, passbook maintenance,
interest calculations on loans and deposits, customer records, balance of
payments and withdrawal. This software is installed at different branches of
bank and then interconnected by means of communication lines like
telephones, satellite, internet etc. It allows the user (customers) to operate

accounts from any branch if it has installed core banking solutions. This new
platform has changed the way banks are working.
Gartner defines a core banking system as a back-end system that processes
daily banking transactions, and posts updates to accounts and other financial
records. Core banking systems typically include deposit, loan and creditprocessing capabilities, with interfaces to general ledger systems and
reporting tools. Strategic spending on these systems is based on a
combination of service-oriented architecture and supporting technologies
that create extensible, agile architectures
Many banks implement custom applications for core banking. Others
implement/customize commercial ISV packages.
While many banks run core banking in-house, there are some which use
outsourced service providers as well. There are several Systems integrators
like Capgemini, Accenture, IBM and HP which implement these core banking
packages at banks.

Overview
Core banking is all about knowing our customer need and provide them with
the right service at the right time through right channel 24*7 day a week.
Being electronic, it not only provides its customers with faster and better.
Facilities, it even reduces the manual overhead of accounts maintenance.
Functional components of the project:Following are the functional needs of the software:1. Customer must have a valid user ID and password to login to the
System.
2. After the valid user logs in, the system shows the present balance
in that particular account number.
3. Customer can perform transactions like deposit and withdrawal
from his account.
4. Proper help to be provided as and when requested by the customer.

More functionality can be added to enhance the project

1. By adding new modules of different accounts like saving A/C,
current A/C etc. to facilitate new customers/users.
2. By the use of electronic media, Digital Signature on the card can
be provided with the customer to make it secure and efficient.

PRESENT SYSTEM
The developed system is an innovation in the area of private
banking. In the existing system the no. of staff required for
completing the work is more, while the new system requires
lesser
staffs generally. The data entry process requires the data on the
paper, which is then feed into the application by the operator
while
doing so; the data entry operator has to look into the paper again
&
again and thus the chances of inaccuracies in the typed contents
increases. Also the process includes higher transportation cost,
increased handling cost, more time delays, low accuracy, more

usage of resources like registers, books, papers, etc.

PROPOSED SYSTEM
Why an Automated Private Banking
System?
Almost 60% of todays information is still paper based.
30% of all office time is spent finding documents.
The average time to manage a single document is 12 minutes,
9 minutes to re-file and 3 minutes to process.

Hence the requirement is to develop a system that minimizes all

these overheads included while giving the maximum output for the
Organization.
The basis for the project is to develop a fully
automated banking system that includes depositing of amount,
withdrawal of amount and exporting the outcome back to the client
while considering all the tools and facilities than a client may need
for efficient and effective output.
.

Benefits of the system

Quick, authenticated access to accounts via the desktop.

Easily scalable to grow with changing system requirement.
Enterprise wide access to information.
Improved information security, restricting unauthorized access
Withdrawal of amount by the client.
Deposition of amount by the client.
Faster balance enquiry

Minimize Storage Space

In manual system, much storage space for data files is required
so to overcome this problem, on automated well managed
database is developed for saving storage space. This s/w saves
space and stores information efficiently. It ends the burden of
having large manual filing storage system.

Banking System can be used extensively

Withdrawal of amount by the client.
Deposition of amount by the client.

Faster balance enquiry

.
\

Services

core banking team has successfully accomplished a number of large project assignments for
global banking majors in varied areas like application development, development of online and
batch interfaces to other landscaped applications and their seamless integration into the overall
application firmament.
With a proven track record in application interfacing / integration with plethora of upstream and
downstream applications end-to-end services encompass design, development, testing and test
automation and also provide application enhancement and crucial maintenance support.
Apart from these service offerings, the experienced techno-banking team of also provides high
end solution consultancy for core banking with an underlying capability to create and service the
financial products required by varied targeted customer categories. These are in the spaces of

application migration, data conversion and big bang as well as phased implementation focusing
on modular business coverage, to name a few.
Such initiatives harness the entire banking domain and technological expertise of the entire team
- a team with a proven track record in delivering quality performance and services with
aggressive timelines, across multiple streams running in parallel, often creating from scratch the
environments for development and implementation.

Partnerships

HCLs partnership with leading Core Banking vendors like SAP, Oracle and Misys is leveraged
to provide intricate product customization and multi-layered implementation initiatives across
the world for leading banks.
HCLs development partnership with SAP is a stellar example of such grand alliances. This
partnership focuses among other things, on global core banking product development initiatives
in India, USA and China which encompass Governance, Risk and Compliance too. This ever
expanding partnership will soon cover other niche areas like value engineering, sharing best
practices at both sides.
Under Oracles Partner Program, HCL is recognized at the highest level of partnership i.e. the
Certified Advantage Partner. HCL has been an Oracle implementation partner since 1998. HCLs
Oracle Practice is an integrated services group, providing technology-based business
optimization on Oracle Enterprise software products and on Oracle Technology Platforms for a
large number of Oracle products in areas including core banking, beside Data Warehousing,
Business Intelligence, Fusion Middleware and Oracle Database. HCLs Oracle Lab is a joint
endeavor by both companies to develop vertical centric, pre-configured solutions and provide
product demonstrations to global clientele.
HCLs partnership with Misys commenced in 2007. The scope of partnership includes
implementation of various Misys products in Core Banking, Commercial & Corporate Banking
as well as Capital Market Services. The partnership concentrates on product enhancements and
implementations in Asia Pacific and Australia geographies with blueprints being drawn to extend
the coverage both geography and product-wise.
Axon, the newly acquired SAP consulting wing of HCL brings new capabilities to the market
with a truly global delivery model providing full lifecycle suite of services with unique value
propositions.

Inhouse core banking systems of large domestic and foreign banks

For large Swiss and European banks we have successfully implemented various projects:

Specification German tax requirements / final taxation onshore

Test and review German tax reports onshore

Specification French tax requirements

RFI-/RFP-process for multinational tax reporting offshore

utions

Executive Summary
Core banking is the central processing unit of a bank. The banks, with
the help of software vendors, have found the opportunity to leverage
multiple channels in order to deliver products and facilitate transactions. What was once a system heavily reliant on the paper-based
operations, has now been revolutionized by digital alternatives, bringing with it a new wave of automation. Efficiency and increased
productivity are the standards. Branch networks are increasingly able
to utilize the cohesive properties of new core systems.
The global core banking market looks mature, with a significant percentage of banks having replaced their legacy systems with more
efficient and flexible core banking systems. The desire to change core
generally depends on the size of the bank, with smaller seemingly
more willing to undergo a switch, yet with larger banks having more
capital with which to do so, increasing their momentum within the
core market. The main drivers for core replacements are numerous.
The most obvious is modernization: providing a more cost effective
and efficient way to run core processes. The importance of analytics
and its application with regard to the view of the customer and customer service can also be a subdriver for core modernization. Most
emerging markets are finding core replacement a necessity to compete
in an ever more competitive, and regulated banking environment,
spurring lots of movement in new geographies.
Some of the other global trends among the large banks are:

Preference for an SOA-based system. With many large banks

having a number of independent systems working from different vendors and in different environments, a serviceoriented architecture can provide better integration between
disparate entities.

Analytics, customer-centricity, and multichannel technologies. Banks increasingly want a core system that utilizes data
analytics to provide a more complete view of the customer,
which then allows for better customer-bank communication.
Multichannel options like ATM, mobile, Internet, and IVR are
crucial in attracting and serving customers. Core banking
solutions are also expected to facilitate product development
and provide flexible customization capabilities.
4 Copyright 2012 Celent, a division of Oliver Wyman, Inc.

Reduced implementation time. Replacing and centralizing a

new system needs to then be done in a phased but efficient
way as to minimize this impact. For large banks with a lot of
branches, a complete replacement with reduced implementation time would be a challenge for the vendors. Smaller
banks will tend to migrate DDA accounts over to a new system at the same time, while larger institutions will first
launch new products and then slowly, if at all, migrate the
current accounts.

Major preference for in-house implementation. A majority of

large banks in developing countries prefer in-house implementations to hosted implementations. However, offshore
branches for large institutions might opt for a hosted solu-

tion, especially when engaging in an outsourced service

agreement.
In this report, Celent examines the solutions focused on the large
banks around the world using Celents ABCD Vendor View. The vendor
with the most advanced technologies is TCS BaNCS. On the breadth of
functionality dimension, Accenture Alnova scored over other solutions. Temenos T24 has the largest customer base, as estimated by
weighted average asset size, among the solutions covered in this
report. FIS Profile and FIS Systematics lead in depth of client services.
Figure 1 and Figure 2 show a breakdown of each vendors customer base
by asset size, taking into account percentages and total numbers for
each tier. Figure 3 on page 6 looks at each vendors percentage of
hosted vs on-premise implementations.

1) Trade Finance (export, import, remittances, other related services including

foreign currency finance, reporting to various trades related and regulatory
agencies)
2) Assist in integration of NPA Management System with CBS.
3) Management/Executive Information Systems.
4) Setting up a Call
Management (CRM)

Centre

and

implementation

of

Customer

Relationship

5) Advise on APIs/message formats for interface/integration with the existing systems for
ensuring compatibility and integration:a) Financial Switch Solution and ATM services
b) TBA software and ALPM software implemented in branches
c) Integrated risk and Cash Management Services
d) Trade Finance, Treasury and Asset Liability Management
e) Credit appraisal
f) Data warehousing, Data mining and CRM
g) Various Gateway application modules of INFINET like RTGS, NDS, SFMS etc.
h) HR Management System
i) Inter Branch Reconciliation (IBR)
j) Centralized Accounting System(CAS)
k) Cash Management System
l) Credit Card Processing
m) Credit rating Tool
n) Credit Appraisal and Management
o) Credit Monitoring & NPS Management
6) Cash Management Services, DP Facility, etc.,
7) Forex and Domestic Treasury and Investment and Asset Liability Management
8) Risk management including Market Risk, Credit Risk and Operational Risk
modules, Anti money laundering, Basel-II compliance.
9) Straight Through Processing model for Credit appraisal based on workflow
10) Data warehousing/Data Mining.

11) Plan out strategy for implementation and roll out.

12) Monitor implementation of the first 10 branches.
13) Devise strategy for developing skills of the staff, identification of training needs
and plan out an effective training methodology.
14) Advise suitable hardware requirements for the proposed CBS taking into account of
factors like technology edge, compatibility with other systems, scalability, capacity
optimization etc.

10.1 Knowledge Management & Training

1) Assisting the Bank to identify training solution that helps them to meet challenges with a
unique blended learning model (a mix of classroom & e-learning). Learning model
should atleast include the following.
a.
b.
c.
d.
e.

Instructor led training.

Expert Assistance
Online mentoring
Electronic course facilitation
Learning portal base content distribution