chief Banking and Choosing the Right Solution
Imagine what edges looked like before 1970. Long queues and particularly long waiting period for just about any transaction was normal. People where customers of a branch and not really a parent bank. All transactions could be performed at your particular branch only. Any entry only reflected after more than 24 hours as information went to data centers in batches at the end of the working day. However, over the next 40 years most edges chose to create a Centralized Online Real-time Exchange or ecosystem (chief) to manage their operations, consequently giving rise to chief Banking. In India alone, the number of public sector bank branches with chief banking implementation went from 79.4% in March 2009 to 90% in March 2010. All over the world, the numbers are closing in on cent per cent.
According to US-based research and advisory firm Gartner, chief banking system (CBS) is basically a back-end system that performs banking transactions on a daily basis and updates accounts and financial records. It is essentially a bank’s nervous system that if affected can change the bank’s operations drastically. CBS is a shared point of connection for the complete gamut of products and sets that edges today provide under one umbrella.
Centralized data centers have been formed and all banking applications can be accessed here. Data of any bank as a whole is stored in a central server that branches, regional offices and head office can lay hands on. All types of banking operations like recording all types of transactions, loan and mortgages in addition as interest calculations, deposits, money move, payment balance, customer information and such other operations have become fully automated using a chief banking solution. Such a solution makes use of the internet or other forms of connectivity to automate the operations with an appropriate software. This chief banking software is then applied across all the branches consequently bringing them all on a single platform.
A solution usually comprises of:
• Internet, mobile, tab banking
• Data centre and colocation in addition as DR sets
• Fund move remotely and closest (IMPS, NEFT, RTGS, etc.)
• Automated Teller Machines (ATMs) & Point of Sale systems
• Several other sets like QR Code Merchant Payment, Agency Banking Application, eKYC Solution, Connectivity and others.
Goal of CBS
chief banking solutions differ from bank to bank and largely depend on the kind of customer bases that a bank has. The basic goal of chief banking is to be largely customer functional and cut down on operational expenses. A good chief banking solution directly impacts profitability, customer satisfaction and competitiveness. It enables customers to unprotected to more freedom in transaction, edges provide from reduced time and resources spent on boring activities.
A chief Banking solutions is especially advantageous because of its:
• Scalability: As transactions are processed in bulk volumes daily, the business priority is to be able to extent up without any breaks.
• Flexibility: Banking has numerous modules that requires a solution which is extremely flexible that is able to configure the right mix of IT resources at the right time.
• Agility: To be competitive in the market the solution can quickly adapt to changes and transformations.
• Cost-effectiveness: These solutions not just deliver customer-satisfaction but also assistance the bank by saving them lots of man hours and maintaining accuracy.
A successful chief banking application can be migrated in all types of financial institutions including:
• Corporate edges
• PSU & Nationalized edges
• Scheduled Co-Operative edges
• Urban Co-Operative edges
• State Co-Operative edges
• Payment edges
• Small Finance edges
• Non-Banking Finance Corporations
• Micro Finance Institutions
• Credit Co-Operative Societies
• Securities & Insurance Sector
• Regional Rural edges
Among the myriad of advantages that a CBS has, the most important is that it has enabled edges to strengthen their relationship with customers. Concepts of customer satisfaction, retention, customized and tailored plans, customer convenience and others were introduced in the financial industry, thanks to chief banking.
Customers today have a plethora of channels by which they can contact their respective edges. It could be by their PCs via the internet, on their smart phones, tabs or by mobile kiosks. A good chief banking software integrates all these channels and provides a seamless transacting experience for both the bank and the customer.
Since all processes become automated, another major advantage of a good modern chief banking solution is that it reduces chances of human errors and fraud. This in turn increases employee efficiency and then ultimately contributes business opportunities. All the resources are aptly utilized consequently minimizing chance of wastage in addition.
Automation, more often than not, always helps companies save a lot of money and time. Online banking decreases human footfalls in bank premises which method that infrastructural costs go down drastically. Similarly, operational and sustain expenses also go down. Maintaining legacy systems is also a pricy affair. chief banking brings down IT maintenance costs by moving to shared sets platforms.
Lastly, since all steps are precisely recorded and can be tracked back, a ready business examination is obtainable in real-time. All the data collected in the back-end can consequently be transformed into actionable insights according to need. This has made banking smarter over the years. chief banking solutions have also changed over the time bringing into its purview improved sets. Chief information officer’s believe that integration of new technologies like Artificial Intelligence, Chat-bots and Internet of Things platform can help cause business intelligence which helps in better decision-making.