Core Banking Solution (final) Ppt.pptx

Project Report Submitted to : Faculty name : Submitted By : Name :

Roll No : Reg. No : Batch

:

Section :

CORE BANKING SOLUTION(CBS) & Types of CBS Server

ACKNOWLEDGEMENT “I wish to thank various people for their contribution to this project. I would like to express my deep gratitude to my ITT educator Ms. SUMINDER KAUR for their guidance, enthusiastic encouragement and useful advice of this research work”.

INDEX ■ What is Core Banking Solution? ■ Working Of Core Banking Solution ■ Structure of Core Banking Solution ■ Need of Core Banking Solution ■ Difference between CBS and TBS ■ Types of Server ■ Core Banking Solution Architecture ■ Evolution of CBS Architecture ■ Operations of CBS Branch

■ CBS Flows of Transactions ■ Component of CBS ■ Advantages of Core Banking Solution ■ Disadvantages of Core Banking Solution

■ Top CBS Application Software Providers

What is Core Banking Solution? ■

Core Banking Solution (CBS) is centralized Banking Application Software. It has several components which have been designed to meet the demands of the Banking Industry.

■

In other words, Core Banking is a Banking service provided by a group of networked bank branches where customers may access their bank account and perform basic transactions from any of the member branch offices.

■

Banking Software and network technology allows a bank to centralize its record keeping and allow access from any Locations.

■

It is supported by advanced technology infrastructure and have high standards of business functionality.

■

Open source Technology in Core Banking solution or software can helps banks to maintain their Productivity and Profitability at the same time.

■

There are different Companies in the market providing CBS software like Finacle by Infosys, Quartz by TCS and Flex Cube by Iflex Solutions.

Working Of Core Banking Solution ■

Core banking, is a solutions to the issues of traditional banking system.

■

In CBS, though your account remains with the home branch, but you can access your account from any branch of the same bank.

■

For Example If you have your account in SBI Ring Road Branch, you can still access your accounts from any SBI branch within the nation.

■

Meaning, you can make deposit and withdrawal transactions from any branch of the same bank.

■

This is because the bank now maintains a central database of the accounts that can be accessed from any branch of the nation.

■

Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts,

■

And avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account.

■

The customer is no more the customer of a Branch. He becomes the Banks Customer.

■

Another interesting fact regarding CBS is that all CBS branches are inter-connected with each other.

■

Therefore, Customers of CBS branches can avail various banking facilities from any other CBS branch located anywhere in the world.

Structure of Core Banking Solution

Need of Core Banking Solution ■

To meet the dynamically changing market & customer needs.

■

Speed up the Banking Transactions.

■

To improve & Simplify banking processes so that bank staff can focus on sale and marketing stuff.

■

Convenience to a customer as well as the bank.

■

To expand Presence in Rural and Remote areas.

■

To integrate various Branches of the bank

Difference between CBS and TBS Core Banking Solution ■

■

Core (Centralized online Real-time Exchange) banking is a banking services provided by a group of networked bank branch. Customers may access their bank account and perform basic transactions from any of the member branch offices.

■

Core Banking functions will include transaction accounts, loan, mortgages and Payments.

■

Banks make these services available across multiple channels like ATM, Internet Banking, mobile banking and branches.

Traditional Banking Solution ■

In a traditional banking system, an individual or a firm that opens an account with the bank can get its transaction only through that bank or branch.

■

E.g. : If you have opened your account with ICICI bank, Rohini Branch, then your transactions will be limited to such branch.

■

This means:  To deposit the money,  To withdraw the money,  To transfer your funds,  To deposit your cheques, etc. you will have to visit your branch.



In case of any transaction happening outside of the branch, you will have to wait for such funds to be reflected in your branch for days.

Types of Server A server is a sophisticated computer that accepts request from different machine called clients. ■

Application Server

■

Database Server

■

ATM Server

■

Web Server

■

Antivirus Server

■

Internet Banking Application Server

■

Internet Banking Data Base Server

■

Proxy Server

■

Mail server

Application Server ■

An Application server is a software framework that facilities to create web application and a server environment to run them.

■

An application server is a component-based product that resides in the middle-tier of a Server centric architecture.

■

It provides middleware services for security and state maintenance, along with data access and persistence.

■

Application Server frameworks contain a comprehensive service layer model.

■

It acts as a set of component accessible to the software developer through a standard API defined for the Platform itself.

■

For Example, Tomcat is an application server for Java Web Application, which contain additional Functionalities like Servlet Container.

Database Server ■

A database server is a computer program that provides database services to other computer programs or to computers, as defined by the client server model.

■

The term may also refer to a computer dedicated to running such a program.

■

Most database servers respond to a query language.

■

Each Database understands its query language and converts each submitted query to server readable form.

■

Users access a database server either through a “front end” running on the users computer.

■

Example of Database application include Oracle, DB2, Informix and Microsoft SQL Server.

ATM Server ■

This server contains the details of ATM account holders.

■

Soon after the facility of using the ATM is created by the Bank, the details of such customers are loaded on to the ATM server.

■

When the Central Data Base is busy with central end-of-day activities or for any other reason, the file containing the account balance of the customer is sent to the ATM switch.

■

Such a file is called Positive Balance File (PBF).

■

Till the central data base becomes accessible, the ATM transactions are passed and the balance available in the ATM server.

■

This ensures not only continuity of ATM operations but also ensures that the Central data base is always up-to-date.

Web Server ■

A Web server is a program that uses HTTP(Hypertext Transfer Protocol) to serve the files that form Web pages to users.

■

All computers that host Web sites must have Web server Program.

■

The primary function of Web server is to store, process and deliver web pages to Client.

■

The Communication between client and Server takes place using the Hypertext transfer protocol (HTTP)

■

Dedicated computers and appliances may be referred to as Webservers as well.

■

Leading Web server include Apache (the most widely installed Web Server), Microsoft Internet Information Server and nginx (pronounced Engine X)

Proxy Server ■

In network, a proxy server is a server that acts as an intermediary for requests from client seeking resources from other servers.

■

It intercept all the requests to the real server to see if it can fulfill the request itself. If not, it forwards the request to real server.

■

A proxy server is a dedicated computer or a software system running on a computer.

■

A client connects to the proxy server, requesting some services, such as a file, connection, web page, or other resources.

■

Proxy server have two main Purposes;

■

To improve Performance and to filter request.

Mail Server ■

A mail server(or email server) is a computer system that sends and receives email.

■

Mail servers send and receive email using standard email protocols.

■

The mail server works in conjunction with other programs to make up what is sometime referred as messaging system

■

A messaging system includes all the applications necessary to keep E-mail moving.

■

This system uses SMTP (Simple Mail Transfer Protocol) or ESMTP (Extended Simple Mail Transfer Protocol).

■

For example, the SMTP protocol sends messages and handles outgoing mail requests.

Core Banking Solution Architecture  CBS is a Three Tier Architecture:

 Data Base Tier  Application Tier  Presentation Tier

Evolution of CBS Architecture

Operations of CBS Branch ■

Access Control Procedures

■

Server Related Procedures

■

Physical and Environmental Controls

■

Network Related Procedures

■

ATM Configuration

■

Business Continuity Planning & Disaster Recovery planning

CBS Flows of Transactions 

User access CBS from a PC.



It is a web browser based access - Similar to Internet Browsing.



URL is intranet address.



Access is granted after authentication of user ID and password.



User command is transmitted from PC.

Component of CBS INTERNET BANKING

DATA CENTRE

COMPONENT OF CBS

ANTIVIRUS SOFTWARE

DATA NETWORK ATMs

Internet Banking ■ Just as in the case of ATM servers, where the details of all the account holders who have ATM facility are stored, the Internet banking data base server stores the user name, password of all the internet banking customers.

■ IBDS (Internet Banking Data Base Server) software stores the name and password of the entire internet banking customers (Please note that the ATM server does not hold the PIN numbers of the ATM account holders). ■ IBDS server also contains the details about the branch to which the customer belongs. The Internet Banking customer would first have to log into the bank’s website. ■

The next step would be to give the user name and password.

■ The IBDS is located in a Demilitarized zone. ■ It has a separate VLAN that connects a proxy server, mail server, web server and IBAS.

Antivirus Software ■

In the Core Banking Solution as there is a Centralized Data Centre and also as there was a Centralized Data Base server, application server etc., the Anti Virus Software was also available only in the Centralized Data Centre.

■

This copy of the Anti Virus Software was updated promptly and

■

Regularly at the Data Centre and pushed into all of the servers and in all the systems in the branches by push pull method

■

Some Banks had, for back up purposes as also for business of the

■

bank continuity planning had decided to have servers in the different branches.

■

All the servers also were updated with the latest Anti Virus.

Advantages of Core Banking Solution Advantage to Customer Point of view All the Branches access application from central server, so that deposits made in any branch reflects immediately and customer can withdraw money from any other branch throughout the world.

Anywhere Banking by eliminating branch Banking and can Provide Banking Services 24*7

Transfer of funds from the Cities to the Villages and Villages to Cities will be done Easily.

CBS is very helpful to people living in Rural areas. Farmer can Receive E-Payments towards Subsidy directly in their Bank Accounts.

ATM, Interest Banking, Mobile Banking, Payment Gateways facilities are available.

Centralized printing and backup resulting in reduction in capital and revenue expenditure on printing and backup devices and media at branches.

Advantages to Bank Convenience in Opening accounts Processing cash, servicing loans, calculating interest, implementing changes in Policies like charging interest rates etc.

Retention of customer through better customer services.

Process standardization within bank & branches.

Accuracy in transaction & minimization of errors.

Ease of Submission of various reports to the government & regulatory bodies like RBI.

Improved management of Documentation & Recording having centralized database result in quick gathering of data & MIS Report

Disadvantages of Core Banking Solution Any Failure in Computer systems can cause entire network to go down. Excessive Reliance on Technology. If Data is not protected properly and if proper care is not taken, hackers can gain access to the sensitive Data. Costly maintenance and support requiring niche skills and costly Staff. Vendor of the Platform controls the pace of Innovation, if they don’t do it, you can’t have it.

Top CBS Application Software Providers Company

Product

Infosys

Finacle

I-Flex Solutions

Flexcube

HCL Technologies

Bankmate

Tata Consultancy Services (TCS)

Quartz

Polaris

Intellect suite

BIBLIOGRAPHY ■ ICITSS Study Material – ICAI

■ https://www.researchgate.net/figure/Theexample-of-CBS-architecture_fig1_283283862 ■ https://www.sesameindia.com/images/corebanking-system-architecture

THANK YOU