Core banking solutions are beneficial to both banks
as well as customers.
A] Benefits For Customers
B] Benefits For Banks
- Quicker services at the bank counters for routine transactions like
cash deposits, withdrawal, passbooks, statement of accounts,
demand drafts etc.
- Anywhere banking by eliminating branch banking.
- Provision of banking services 24 X 7.
- Fast payment processing through Internet banking, mobile banking .
- Anytime any where banking through ATMs.
- All branches access applications from central servers/datacenter , so
deposits made in any branch reflects immediately and customer can
withdraw money from any other branch throughout the world.
- Process standardization within bank & branches.
- Retention of customers through better customer service.
- Accuracy in transactions & minimization of errors.
- Improved management of documentation & records
having centralized databases results in quick gathering of data &
- Ease in submission of various reports to the Government &
Regulatory boards like RBI.
- Convenience in opening accounts, processing cash, servicing loans,
calculating interest, implementing change in policies like changing
interest rates etc..
In India most of the private sector banks have implemented the Core banking
solutions but most of the Co-operative Bank, Regional Rural Banks are
missing the benefits of CBS.With the help of core banking & latest
technology, private sector banks are giving tough competition to urban
co-operative banks(UCBs) & other government managed banks. To cope up
with the growing needs of customers; co-operative banks need to implement
core banking solutions. To face the challenges of dynamic market , UCBs need
to take help of IT their operations . Considering the importance of the
matter, the Reserve Bank of India (RBI) mandated a deadline for
Urban Co-operative Banks (UCBs) and advised to implement the core banking
solutions (CBS) by December 31, 2013.