CBS Full Form – Core Banking Solutions (Meaning and Benefits)
CBS stands for Core Banking Solutions. Banks in India use the CBS concept and technology to centralize banking services across its branches. Quite simply, a customer can do transactions from any of the many branches of a bank, they do not need to visit the home branch (branch where bank account was opened) for conducting their business.
CBS is a highly sophisticated and real-time IT infrastructure that links all of the branches of a bank in such a way that customers can access their account details, as well as transact business from any branch.
CBS has completely made branch banking redundant and obsolete.
- Core Banking Solutions (CBS) Explained
- Importance and Benefits of CBS
- CBS Software
Core Banking Solutions (CBS) Explained
Core Banking Solutions (CBS) is a comprehensive and highly sophisticated banking platform that allows banks to manage and streamline their core banking activities. Bank’s use proprietary software systems bought from software companies which act as the bank’s CBS.
For instance, HDFC Bank uses Oracle’s FLEXCUBE software as their CBS, State Bank of India (SBI) uses TCS BaNCS, Kotak Mahindra Bank uses Infosys’ Finacle CBS.
Characteristics of CBS:
- Modular Design and Architecture: A CBS software is generally modular in nature. That essentially means that the banks can choose the level of customization of CBS software based on their requirements. If a bank wants to integrate CRM within its CBS, but not include analytics, it is free to do so.
- Highly Scalable: A CBS is designed in such a way that it can scale up and down based on the number of customers a bank has. If a bank experiences an influx of customers, the CBS can scale up to accommodate the increase in customers.
- Real-time Processing: Real-time processing is one of the most important features of a CBS. Real-time processing ensures that account and transaction updates are immediate, and reflect across branches, ensure that customers can access their information from any branch.
- Channel Integration: In today’s day and age, customers access banking through a variety of touch points, including mobile banking, netbanking, and ATMs. The channel integration feature of a CBS ensures a consistent customer experience across all these touch-points.
- Robust Security: A CBS has robust and impressive security measures to ensure the integrity and safety of customer data. There are a variety of fraud detection measures implemented within CBS to elevate customer security.
Importance and Benefits of CBS
- Accessibility for Customers: CBS ensures that bank customers can access their bank accounts and do transactions from any branch. Further, they can also transact through the bank’s mobile app, website, and more. It is the role of a CBS to ensure that the customer has a seamless experience across touch points.
- Increase in Customer Service: Because of the real-time aspect of CBS, a bank’s customer can visit any of the bank’s branches based on his convenience and ask for a bank statement. He can also transact seamlessly across the bank’s website and mobile app.
- Time Saving: The nature of a CBS ensures that it is a great time saver for the bank as well as for the bank’s customers. This increases the overall efficiency of operations.
- Cost Savings: As a CBS reduces the manual work required from the bank’s employee, it increases the cost savings of the bank.
Mentioned below are some of the leading CBS software systems on the market, along with their developer.
Company / Developer
Sopra Banking Software
Sopra Banking Platform
Temenos T24 Transact
Fidelity National Information Services
CBS from Nelito Systems
Tata Consultancy Services (TCS) BaNCS
Tata Consultancy Services (TCS)
Wipro Core Banking As-a-Service