core banking project on union bank

7/30/2019 Core Banking Project on Union Bank

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CORE BANKINGUNION BANK OFINDIA


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CONTENTS

1. INTRODUCTION2. WHAT IS CORE BANKING3. C.O.R.E BANKING SOLUTIONS4. CORE BANKING IN INDIA5. CORE BANKING TECHNOLOGY

PROVIDERS

6. CORE BANKING IN UNION BANKAND SERVICES

7. BIBLIOGRAPHY8. CONCLUSION

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Introduction

Type Public

Industry FinancialCommercial banks

Headquarters Mumbai, India

Key people Mavila Vishwanathan Nair (Chair)

Revenue 15,277.42 crore (US$3.32billion)[1]

Net income USD 0.16 billion

Employees 25,630

Website www.unionbankofindia.co.in

Union Bank of India (UBI) is one ofIndia's largest state-owned banks (the government owns

55.43% of its share capital), is listed on the Forbes 2000. It has assets of USD 13.45 billion

and all the bank's branches have been networked with its 1135 ATMs. Its online Telebanking

facility are available to all its Core Banking Customers - individual as well as corporate. It has

representative offices in Abu Dhabi, United Arab Emirates, and Shanghai, Peoples Republic

of China, and a branch in Hong Kong.
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Financialhttp://en.wikipedia.org/wiki/Commercial_bankshttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mavila_Vishwanathan_Nairhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Union_Bank_of_India#cite_note-0http://en.wikipedia.org/wiki/Union_Bank_of_India#cite_note-0http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Websitehttp://www.unionbankofindia.co.in/http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Forbes_2000http://en.wikipedia.org/wiki/Abu_Dhabihttp://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Peoples_Republic_of_Chinahttp://en.wikipedia.org/wiki/Peoples_Republic_of_Chinahttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/File:Union_Bank_of_India_Logo.svghttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/File:Union_Bank_of_India_Logo.svghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Peoples_Republic_of_Chinahttp://en.wikipedia.org/wiki/Peoples_Republic_of_Chinahttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/Abu_Dhabihttp://en.wikipedia.org/wiki/Forbes_2000http://en.wikipedia.org/wiki/Indiahttp://www.unionbankofindia.co.in/http://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Union_Bank_of_India#cite_note-0http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Mavila_Vishwanathan_Nairhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Commercial_bankshttp://en.wikipedia.org/wiki/Financialhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Types_of_business_entity


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What is core banking?

Banking the Customers way is called core banking.

Core banking is a general term used to describe the services provided by a

group of networked bankbranches. Bank customers may access their funds

and other simple transactions from any of the member branch offices.

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.

Nowadays, most banks use core banking applications to support their

operations where CORE stands for "Centralized Online Real-time

Exchange".
http://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bank


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This basically means that all the 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 thedeposited 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.

Core Banking is the meeting point of the largest banking services segment

namely Retail and Commercial Banking, cutting edge Information

Technology and the ever advancing Communication Technology. It is the

heart of a modern financial service organization and is all about providingthe banking customers with the right products at the right time through the

right channels 24 hours a day, 7 days a week through a multi location, multi

branch network.

Normal core banking functions will include deposit accounts, loans,

mortgages and payments. Banks make these services available across

multiple channels like ATMs, Internet banking, and branches.
http://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Internet_bankinghttp://en.wikipedia.org/wiki/Internet_bankinghttp://en.wikipedia.org/wiki/Automated_teller_machine


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Core Banking:

The reason for calling it Core Banking System, after deployment, is the hart

or the Core of the Bank / financial institution. All entities that form part ofthe eco-system of the bank / financial institution interact with. The entities

are;

* Bank employees head office, regional offices, branches etc

* Bank Management: executives / managers at respective locations head

office, regional offices branches etc

* Bank customers: Personal banking, corporate banking international

banking etc.* Bank Auditors, internal and external auditors who need to verify systems

and procedures.

* Bank Regulators: mandatory reporting to central bank and other financial

bodies.

* Bank share holders: providing the desired return to shareholders from

banking operations.

For a bank / financial institutions the Core Banking system must addressthe Core Business of deposits and loans and the same time, address the

work place needs of all above entitles at their respective locations.

Ingredients:

There are 5 ingredients that form part of the Core Banking system. These

are the essential building blocks for the entire bank / institution.


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General Ledger:

The absolute Core is the General Ledger of the bank accordingly. The G.L.

system is which generates the financial statements for the entire bank andprovides any entity to monitor the financial health of the bank.

In a Core Banking System, this is achieved by deploying a centralized G.L.

System which provides for thousands of sub legers with. Level's start with

individual branch G.L. rolled up to regional G.L. with further rollup of all

regional G.L's to bank.

Customer Information System:The next major ingredient of a Core Banking system is the Customer

Information System or CIS. A customer is identified by uniquely by his / her

CIS number and all information related to that customer (name, address,

phones, employment, credit history, relatives, family members, and

demographic data) is stored along with this unique number. All this is

stored in a centralized CIS system allowing the customer to visit any branch

to do business with the bank.

Deposit System:

The third major ingredient is the deposit system. The ability to process

various types of deposits is a must. These include current, savings, time

deposit and hundreds of variations in each of these. e.g. Simple current

accounts, current accounts with overdraft, cash credit accounts, variable

rate overdrafts, simple savings, multi-currency savings, time deposits, CDS,

variable rate time deposit, recurring deposits, multi-currency, time

deposits, and so on. This is required to handle the liability side of the bank

business.


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Loan System:

The fourth major ingredient is the loan system. This system handles the

asset side of this business.

The loan process in a bank involves multiple stems. The loan appraisal and

sanction step, the disbursement and monitoring step, the non-performance

tracking step the recovery step and the closure. With authorized access,

any staff working in any branch around the country should be able to

retrieve the customer loan information on his terminal and help the

customer do a financial transaction. These financial transactions are

automatically sent to the bank General Ledger and they update the

appropriate credits and debits in the subsidiary ledgers in the General

Ledger.

Management Information System (MIS):

Once the core deposit and loan business transaction for all customers of the

bank are captured and appropriate General Ledger accounts are updated,

various users of the Core Banking System throughout the bank need to

know what is happening within the entire financial institution. As a result,

the fifth major ingredient is the management information system. This

enables everybody in the bank to obtain the relevant information from the

system in order to carry out their business effectively.

MIS is simple terms takes information from the General Ledger, CIS

Deposit, Loan Systems and present them to the bank.


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New Components:

Besides the 5 major ingredients, there are optional components (like a car

with options like leather seats, flashing light etc) that can be added on tothe Core Banking Systems to help the bank staff uses them in a more

efficient manner, these include:

Delivery Channels:

All the 5 major ingredients of a Core Banking system can be operated by a

bank staff from any location in the country simple by using their terminal

at their workplace. Banks have started focusing on customer relationshipmanagement, Customers can go to the branch, go to an ATM, call on the

phone, and log on to the Internet to do their banking transactions. They can

use one or more of these delivery channels (Called customer touch paints)

to conduct segment and decide on further investment design specific

products and services to promote such delivery channels.

* Branch Automation system

* ATM Switch and connected ATM

* Call center system

* Internet Banking System

Any transaction done by the customers in any of the above systems goes

and updates the Core Banking System like deposit or loan at that in turn

updates the Bank's G.L. in the Core.


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What ingredients are not included in Core Banking?

Typically these systems are confined to a specific business department

within the bank. They are not Core because they do not affect all areas and

entities of the bank.

* Trade finance

* Treasure

* Credit Card

* Mutual Funds

* Stocks, Bonds

* External System

* Payment gateways

* SWIFT

* Shared ATM network

* World Wide credit card networks, maestro, electron etc

* World wide ATM networks plus, Cirrus etc and possibly other systems

that the bank may want to deploy in specific departments


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C.O.R.E. Banking Solutions

What is Core Banking Solution ?

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. Thus CBS is a step towards enhancing customer

convenience through Anywhere and Anytime Banking.


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How shall CBS help Customers?

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 any where in the world. These services* are:

To make enquiries about the balance; debit or credit entries in theaccount.

To obtain cash payment out of his account by tendering a cheque. To deposit a cheque for credit into his account. To deposit cash into the account. To deposit cheques / cash into account of some other person who has

account in a CBS branch.

To get statement of account. To transfer funds from his account to some other account his own

or of third party, provided both accounts are in CBS branches.

To obtain Demand Drafts or Bankers Cheques from any branch onCBS amount shall be online debited to his account.

Customers can continue to use ATMs and other Delivery Channels,which are also interfaced with CBS platform. Similarly, facilities like

Bill Payment, I-Bob, M-bob etc. shall also continue to be available.

Bank is in the process of launching Internet-banking facility shortly.

All these aim to provide convenient, efficient, and high quality banking

experience to the customers, comparable to world class standards.


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What are other benefits to the Customers ?

A CBS branch is like a Sales & Service Delivery Center. Back office

processes/activities are handled through technology at some other site,

called Data Center. Branch, therefore, has more time for serving customers.

This improves the quality and efficiency of the services rendered and the

customer is directly benefited by way of satisfying and happy banking

experience.

Since a CBS branch is essentially designed to focus on customer-interface

and customer service, the special lay-out and ambience of the branch is

made to provide a convenient and delightful banking experience. The

Customer Service Representatives / Executives at the branch are specially

trained to understand, facilitate and deliver banking services efficiently and

effectively.

We wish our customers happy banking.

Core banking solutions are banking applications on a platform enabling a

phased, strategic approach that is intended to allow banks to improveoperations, reduce costs, and be prepared for growth. Implementing a

modular, component-based enterprise solution facilitates integration with

a bank's existing technologies. An overall service-oriented-architecture

(SOA) helps banks reduce the risk that can result from manual data entry

and out-of-date information, increases management information and

review, and avoids the potential disruption to business caused by replacing

entire systems.

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.


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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 coreoperations 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, internetetc. 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.
http://en.wikipedia.org/wiki/Passbookhttp://en.wikipedia.org/wiki/Loanshttp://en.wikipedia.org/wiki/Depositshttp://en.wikipedia.org/wiki/Telephoneshttp://en.wikipedia.org/wiki/Satellitehttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Satellitehttp://en.wikipedia.org/wiki/Telephoneshttp://en.wikipedia.org/wiki/Depositshttp://en.wikipedia.org/wiki/Loanshttp://en.wikipedia.org/wiki/Passbook


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CORE BANKING IN INDIA

The major objectives of bank automation are better customer service,flawless book keeping and prompt decision-making that leads to improved

productivity and profitability. The concept of bank automation started in

the year 1981, but it was during the period 1984-1987 banks in India

started the branch level automation, making use of the then available

MSDOS based stand alone computers. This initiative was taken by the

banks on the basis of First Rangarajan Committee report on bank

computerisation submitted in the year 1984. ALPMs (Advanced Ledger

Posting Machines) were the fashion in those days. However, the pace ofbank automation was very slow in the banks primarily owing to the lack of

trade union consensus on bank automation.

Another committee was constituted in 1988 under the chairmanship of Dr.

C Rangarajan, the then Deputy Governor of RBI to slate down a perspective

plan on automation of banks for a five year period. This paved way to the

implementation of multi-user Total Branch Automation packages running

on a LAN (Local Area Network), either on a Netware or a UNIX operatingsystem. With the implementation of TBA, banks started to offer the

facilities of exclusive Customer Terminal, Single window transaction, on-

line and off-site ATMs, Tele-Banking etc.

But with the advent of new generation private sector banks in India

during 1994-1996, the real era of bank marketing started and these banks

started to offer any where and any time banking facilities to its customers.

This was possible for them mainly owing to the fact that they opted for the

implementation of a WAN (Wide Area Network) based centralised banking

solution rather than a LAN based branch banking solution to network their

limited number of branch outlets.

The old generation banks in India hesitated to follow this banking fashion

on account of its large network of branches on one hand and the then

prevailing exorbitant IT cost on the other hand. But with the globalisation

and liberalisation of Indian market and with the enactment of TRAI (with a

mission to create and nurture conditions for growth of telecommunications


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in the country in a manner and at a pace which will enable India to play a

leading role in emerging global information society) during the late

nineties, there happened a drastic reduction in IT cost.

Improved telecommunication facilities and reduction in hardware as well

as networking cost changed the mind set of the banks in India to try the

CBS option. This also equipped them with the required technology leverage

to compete in the Indian market by offering the similar technology

products and services, as those offered by their new generation

competitors.

Core Banking and Run the Bank are synonymous for most part. Core

Banking is the meeting point of the largest banking services segment

namely Retail and Commercial Banking, cutting edge Information

Technology and the ever advancing Communication Technology. It is the

heart of a modern financial service organization and is all about providing

the banking customers with the right products at the right time through the

right channels 24 hours a day, 7 days a week through a multi location, multibranch network.


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CORE BANKING TECHNOLOGY PROVIDERS

Any technology platform which is positioned to support core banking

operations, needs to address a set of mission-critical criteria, including:

Reliability Scalability Availability Manageability Security

There are many service providers for banks these days which build

technologies and softwares for banks to perform tech banking. Below is a

table of these such service providers.

Overview of Core Banking Solutions and their providers

Package Provider

Avaloq Banking System Avaloq Group

BankFusion Universal Banking Misys

Misys Equation Misys

Misys Midas Plus Misys

Finacle Infosys

Loan FERNBACH Software

CFT-Bank Center of Financial Technologies (CFT)

Lending SolutionsIndus, a business unit ofR

Systems International Ltd.

Alnova Financial Solutions Accenture / Alnova

COBIS (Cooperative Open

Banking Information System)COBISCORP
http://en.wikipedia.org/w/index.php?title=Avaloq_Banking_System&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Avaloq_Banking_System&action=edit&redlink=1http://en.wikipedia.org/wiki/Avaloqhttp://en.wikipedia.org/w/index.php?title=BankFusion_Universal_Banking&action=edit&redlink=1http://en.wikipedia.org/wiki/Misyshttp://en.wikipedia.org/w/index.php?title=Misys_Equation&action=edit&redlink=1http://en.wikipedia.org/wiki/Misyshttp://en.wikipedia.org/w/index.php?title=Misys_Midas_Plus&action=edit&redlink=1http://en.wikipedia.org/wiki/Misyshttp://en.wikipedia.org/wiki/Finaclehttp://en.wikipedia.org/wiki/Infosyshttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/w/index.php?title=FERNBACH_Software&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=FERNBACH_Software&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=CFT-Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Center_of_Financial_Technologieshttp://en.wikipedia.org/wiki/Lending_Solutionshttp://en.wikipedia.org/wiki/Indushttp://en.wikipedia.org/w/index.php?title=R_Systems&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=R_Systems&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Alnova_Financial_Solutions&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Alnova_Financial_Solutions&action=edit&redlink=1http://en.wikipedia.org/wiki/Accenturehttp://en.wikipedia.org/wiki/COBIShttp://en.wikipedia.org/w/index.php?title=COBISCORP&action=edit&redlink=1http://en.wikipedia.org/wiki/Core_bankinghttp://en.wikipedia.org/wiki/Core_bankinghttp://en.wikipedia.org/wiki/Core_bankinghttp://en.wikipedia.org/wiki/Core_bankinghttp://en.wikipedia.org/w/index.php?title=COBISCORP&action=edit&redlink=1http://en.wikipedia.org/wiki/COBIShttp://en.wikipedia.org/wiki/Accenturehttp://en.wikipedia.org/w/index.php?title=Alnova_Financial_Solutions&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=R_Systems&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=R_Systems&action=edit&redlink=1http://en.wikipedia.org/wiki/Indushttp://en.wikipedia.org/wiki/Lending_Solutionshttp://en.wikipedia.org/wiki/Center_of_Financial_Technologieshttp://en.wikipedia.org/w/index.php?title=CFT-Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=FERNBACH_Software&action=edit&redlink=1http://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Infosyshttp://en.wikipedia.org/wiki/Finaclehttp://en.wikipedia.org/wiki/Misyshttp://en.wikipedia.org/w/index.php?title=Misys_Midas_Plus&action=edit&redlink=1http://en.wikipedia.org/wiki/Misyshttp://en.wikipedia.org/w/index.php?title=Misys_Equation&action=edit&redlink=1http://en.wikipedia.org/wiki/Misyshttp://en.wikipedia.org/w/index.php?title=BankFusion_Universal_Banking&action=edit&redlink=1http://en.wikipedia.org/wiki/Avaloqhttp://en.wikipedia.org/w/index.php?title=Avaloq_Banking_System&action=edit&redlink=1


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TCS BaNCS Tata Consultancy Services (TCS)

BankwayFidelity National Information

Services (FIS)

Corebank Fidelity National InformationServices (FIS)

SAP Transactional Banking SAP AG

FLEXCUBE Oracle Financial Services Software

Hogan Computer Sciences Corporation

Insite Banking System Automated Systems, Inc.

Intellect Core Polaris Software Lab LimitedICBA Infopro Sdn Bhd

Profile (software) (formerly

Sanchez Profile)

Fidelity National Information

Services (FIS)

SAB / SAMIC SAB

Signature (software) Fiserv

Systematics

Fidelity National Information

Services (FIS) (formerly Systematics, Inc/

Alltel)

TEMENOS T24 Temenos Group

CoreSoft, SuVikas VSoft Corporation

There are different solutions for large and small scale banks. In this project

we are going to explore both with the HCL, Infosys and Tata Consultancybeing the service providers.
http://en.wikipedia.org/wiki/Tata_Consultancy_Serviceshttp://en.wikipedia.org/w/index.php?title=Bankway&action=edit&redlink=1http://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/w/index.php?title=Corebank&action=edit&redlink=1http://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/w/index.php?title=SAP_Transactional_Banking&action=edit&redlink=1http://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/w/index.php?title=FLEXCUBE&action=edit&redlink=1http://en.wikipedia.org/wiki/Oracle_Financial_Services_Softwarehttp://en.wikipedia.org/wiki/Oracle_Financial_Services_Softwarehttp://en.wikipedia.org/wiki/Hoganhttp://en.wikipedia.org/wiki/Computer_Sciences_Corporationhttp://en.wikipedia.org/w/index.php?title=Insite_Banking_System&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Insite_Banking_System&action=edit&redlink=1http://en.wikipedia.org/wiki/Automated_Systems,_Inc.http://en.wikipedia.org/w/index.php?title=Intellect_Core&action=edit&redlink=1http://en.wikipedia.org/wiki/Polaris_Software_Lab_Limitedhttp://en.wikipedia.org/w/index.php?title=ICBA&action=edit&redlink=1http://en.wikipedia.org/wiki/Infopro_Sdn_Bhdhttp://en.wikipedia.org/w/index.php?title=Profile_(software)&action=edit&redlink=1http://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/w/index.php?title=SAB_/_SAMIC&action=edit&redlink=1http://en.wikipedia.org/wiki/SABhttp://en.wikipedia.org/w/index.php?title=Signature_(software)&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Signature_(software)&action=edit&redlink=1http://en.wikipedia.org/wiki/Fiservhttp://en.wikipedia.org/wiki/Systematicshttp://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/wiki/Systematics,_Inchttp://en.wikipedia.org/w/index.php?title=TEMENOS_T24&action=edit&redlink=1http://en.wikipedia.org/wiki/Temenos_Grouphttp://en.wikipedia.org/wiki/Temenos_Grouphttp://en.wikipedia.org/wiki/VSoft_Corporationhttp://en.wikipedia.org/wiki/VSoft_Corporationhttp://en.wikipedia.org/wiki/VSoft_Corporationhttp://en.wikipedia.org/wiki/VSoft_Corporationhttp://en.wikipedia.org/wiki/Temenos_Grouphttp://en.wikipedia.org/w/index.php?title=TEMENOS_T24&action=edit&redlink=1http://en.wikipedia.org/wiki/Systematics,_Inchttp://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/wiki/Systematicshttp://en.wikipedia.org/wiki/Fiservhttp://en.wikipedia.org/w/index.php?title=Signature_(software)&action=edit&redlink=1http://en.wikipedia.org/wiki/SABhttp://en.wikipedia.org/w/index.php?title=SAB_/_SAMIC&action=edit&redlink=1http://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/w/index.php?title=Profile_(software)&action=edit&redlink=1http://en.wikipedia.org/wiki/Infopro_Sdn_Bhdhttp://en.wikipedia.org/w/index.php?title=ICBA&action=edit&redlink=1http://en.wikipedia.org/wiki/Polaris_Software_Lab_Limitedhttp://en.wikipedia.org/w/index.php?title=Intellect_Core&action=edit&redlink=1http://en.wikipedia.org/wiki/Automated_Systems,_Inc.http://en.wikipedia.org/w/index.php?title=Insite_Banking_System&action=edit&redlink=1http://en.wikipedia.org/wiki/Computer_Sciences_Corporationhttp://en.wikipedia.org/wiki/Hoganhttp://en.wikipedia.org/wiki/Oracle_Financial_Services_Softwarehttp://en.wikipedia.org/w/index.php?title=FLEXCUBE&action=edit&redlink=1http://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/w/index.php?title=SAP_Transactional_Banking&action=edit&redlink=1http://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/w/index.php?title=Corebank&action=edit&redlink=1http://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/wiki/Fidelity_National_Information_Serviceshttp://en.wikipedia.org/w/index.php?title=Bankway&action=edit&redlink=1http://en.wikipedia.org/wiki/Tata_Consultancy_Services


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HCL

HCLs expertise in core banking encompasses the whole gamut of

functionality, be it single customer view, checking accounts, back officetransaction processing for lending, funds transfer, risk, regulatory

reporting, collection monitoring or any other niche/ generic trait.

Services

HCLs core banking team has successfully accomplished a number of largeproject 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 HCLs end-to-end

services encompass design, development, testing and test automation andalso provide application enhancement and crucial maintenance support.

Apart from these service offerings, the experienced techno-banking team of

HCL 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 HCL 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.


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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 andOracle 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.


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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 bothgeography 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.


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FINACLE FROM INFOSYS

Finacle core banking solution is a comprehensive, integrated yet modular

business solution that effectively addresses the strategic and day-to-day

challenges faced by banks. It is highly parameterizable providing that

much-needed flexibility to innovate and adapt to a dynamic environment.

The solution has an integrated CRM module enabling banks to offer a rich

and differentiated value proposition to customers. The layered Service

Oriented Architecture (SOA), STP capabilities, Web-enabled technology and

24X7 operations ensure multi-channel, multi-country and multi-currencyimplementations. The functionality-rich modules in the solution provide

banks with a varied palette of features to continuously innovate on their

product and service offerings. From the services innovation perspective,

Finacle offers a comprehensive and unified customer repository with

capabilities to educate and empower customers. With Finacle core banking

solution, banks can meet the challenges of managing change, competition,

compliance and customer demands effectively.


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Key Modules

Enterprise Customer Information Consumer Banking Wealth Management Corporate Banking Trade Finance Islamic Banking Functional Services Reusable Business Components Accounting Backbone Infrastructure

Business Benefits

Differentiated Product Spread

Finacle core banking solution offers an unlimited palette of features for

banks to design and deploy products for varying market segments. The

product bundling capabilities of the solution offer a wide range of

possibilities for banks to create products with innovative features. The

facilities provided for differential pricing, channel rules and customization

through Finacle Studio the scripting engine, empower banks to

continuously innovate and extend their suite of products, across segments.


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Agile OperationsThe Service Oriented Architecture (SOA) enables the IT team at the bank to

effect changes without touching the base code, ensuring lesser vendor

dependency and faster adaptability to changing business conditions.

Robust Cross-sell FrameworkThe CIF and CRM capabilities in Finacle offer a unified view of the customer

across the entire solution and across multiple back-end applications,

enabling the bank to view the customer from a completely informed angle.

This empowers banks to effectively manage customer relationships and

aggressively explore cross-sell opportunities.

Increased Operational Efficiencies and Productivity

Finacle core banking solution supports business event automation and

process orchestration, thus eliminating manual tasks and reducing process

time. The elimination of error and data redundancies also results in

increased branch productivity. Straight Through Processing (STP) abilities

enhance reduction in turnaround and processing time, increasing output

and enabling speedy completion of tasks.


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CORE BANKING IN UNION BANK OF INDIA

The Union Bank of India was built up in twentieth century and declared

open by the Father of the Nation, Mahatama Gandhi. The bank with its

efficient value-added services, sustained growth, consistent profitability

and development of new technologies bank has ensured complete

customer delight, living up to its image of, GOOD PEOPLE TO BANK

WITH. Bank is offering credit cards, home loan, union Demat, Kisan ATM,

International debit card, online tax payment facility, Railway e-ticketing

kiosk, etc., services to its customers through core banking solution.

The Union Bank of India has 2261 branches out which 1031 branches are

under CBS. Presently 939 ATMs spread out across India both Onsite and

Offsite. All the ATMs are inter-connected through the Banks ATM Switch,

thus facilitating on-line operations in case of CBS customers. The Bank is a

member of Cash Tree consortium and also has bilateral arrangement with

State Bank of India, enabling the Banks ATM cardholder access to over

20000 ATMs across the country. UBI Net connects 65 Offices and 984

branches located in 323 centers, facilitating speedier transmission of MIS

data (Network Map). The network also facilitates the implementation ofCore Banking Solution, apart from DEMAT services, Cash Management

services, fund transfers, messaging system, etc. The Bank is using VSAT

network for connecting branches and ATMs wherever leased line

connectivity is not feasible. We have 590 VSATs operational, connecting

194 branches/extension counters and 316 ATMs.

Adjust, Adapt and Change. That is the message that technology has sent

across to modern day banking. As technology ingrains itself in all aspects

of a Banks functioning, the challenge lies in getting adequate returns from

these investments in technology.


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TECHNOLOGYUnion Bank of India has accepted this challenge and has positioned itself

to opportunities that technology has thrown open. The opening up of the

economy together with near total decontrol from the regulatoryauthorities has added impetus to our efforts. The transition from

traditional banking to technology banking has already begun and a

number of technology projects are under way and also envisaged for the

future. The present and proposed IT initiatives of the Bank encompasses

the following:

All the 2531 branches of the Bank are now under CBS. Leveraging on the

CBS infrastructure Bank has centralized back office operations includingclearing, account opening, statement generations etc. in over 30 centres

This level of computerization has been possible because of the concerted

efforts of 55 Regional Computer Cells. As the branches are far spread out

the benefits of technology have now truly percolated to rural and semi

urban areas also.

Forex operations are fully computerized at all 69 Authorized Dealingbranches. This facilitates submission of various statutory returns

minimizing the chances of default besides ensuring proper monitoring of

international operations.

The Bank has set up a strong ATM network to extend the reach of banking

services to the esteemed customers. Presently over 1200 ATMs spread out

across India both Onsite and Offsite. All the ATMs are inter-connected

through the Banks ATM Switch, thus facilitating on-line operations in case

of CBS customers. The Bank is a member of Cash Tree and NFS consortium

and also has bilateral arrangement with State Bank Of India, enabling the

Banks ATM cardholder access to over 20000 ATMs across the country.

The Bank is issuing International Debit cards under Visa tie-up, thus

offering global reach to its customers. All the ATMs of the Bank also accept

Visa transactions.


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Internet banking services of the Bank offers variety of features to make the

Banking a pleasure. Some of the services offered online are single view of

all the accounts, balance enquiry, account statement, transaction history,

transfer of funds to self as well as third party accounts, request for cheque

book, request for pay order/ DD etc.

Apart from the regular banking services as above, Internet Banking also

provides other value added services such as online ticketing of air & rail,

online tax payment, online trading of shares, online bill payments, online

Demat information, online LC opening etc.

Telebanking has been introduced at 19 important centers for customers of

CBS branches where facilities like balance enquiry, statement over fax, lastfive transactions etc. are available.

Bank has also introduced SMS banking services and is providing both Pull

and Push services. Customers are now able to get alerts for all transactions

happening in their account.

The service branches in about 40 locations fully computerized and

networked to our WAN facilitating fast electronic transmission of data.

Activities like clearing, account opening and statement printing etc. have

been centralized at these centers. This has greatly speeded up realization

of collection instruments and availability of float funds.

The Banks Payment Systems Gateway is in place with all the requirements

that RBI has stipulated and PDO-NDS is operational from the Payment

Gateway. The Bank has extended RTGS and NEFT facility to all CBS

branches.

The Banks Payment Systems Gateway is in place with all the requirements

that RBI has stipulated and PDO-NDS is operational from the Payment

Gateway. The Bank has extended RTGS facility to all CBS branches. The

Bank is also fully geared up for launch of SFMS at selected branches.


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UBI Net connects all the Offices and branches of bank located in 2500+

centres, facilitating speedier transmission of MIS data (Network Map). The

network also facilitates the implementation of Core Banking Solution,

apart from DEMAT services, Cash Management services, fund transfers,

messaging system, etc.

The Bank is using VSAT network for connecting branches and ATMs

wherever leased line connectivity is not feasible. We have over 1000

VSATs operational, connecting CBS branches/extension counters andATMs.

Voice over IP between Administrative offices, Instant file/ Data transfer

and corporate E-Mail, LAN is installed in all the administrative offices and

important CBS branches.

Swift facility is available at 69 centers enabling faster transmission of

messages pertaining to international financial/non-financial transactions.


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CORE BANKING

Union Bank Of India has successfully implemented Core Banking Solutionas a part of Long term IT strategy. The Bank has already rolled out all its

branches covering over 100% of business under CBS. CBS system supports

all retail and corporate banking activities including ATMs, Internet

Banking, SMS Banking and Telebanking. Core Banking Solution has

enabled customers to do trouble-free transaction and it is boon to

customers as they are able to do 'Any Time, Any Where, Any Mode'

banking. CBS has provided customers with best of Bank's products and

accuracy in data transaction. This will enable Bank to give faster deliveryof services across multiple channels of servers. Customers can use any of

the channels available viz., branches, kiosks, ATMs, Telephone Banking,

Internet Banking for their banking needs.The Bank's management

information systems have now become enabled with the Core Banking

System in place since the data now ends centrally. Business intelligence

tools are able to analyze the data for decision support in a faster & more

accurate manner. CBS will provide the customers a single view of their

accounts on a real time basis.

One of the biggest challenges for Finacle was ensuring straight through

processing (STP) of most of the financial transactions. With the UNION

BANK OF INDIA group having several companies under its umbrella,

Finacle needed to seamlessly integrate with multiple applications such as

credit cards, mutual funds, brokerage, call center and data warehousing

systems. Another key challenge was managing transaction volumes. UNIONBANK OF INDIA Bank underwent a phase of organic and inorganic growth,

first by acquiring Bank of Madura followed by a reverse merger of the bank

with its parent organization, UNION BANK OF INDIA Limited. The scalable

and open systems based architecture, enabled Finacle to successfully

manage the resultant increase in transaction levels from 400,000

transactions a day in 2000 to nearly 2.1 million by 2005 with an associated

growth in peak volumes by 5.5 times. With Finacle, the bank currently has

the ability to process 0.27 million cheques per day and manage 7000concurrent users.


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Over the years, the strategic partnership between UNION BANK OF INDIA

Bank and Infosys that started in 1994 has grown stronger and the close

collaboration has resulted in many innovations. For instance, in 1997, it

was the first bank in India to offer Internet banking with Finacles e-

banking solution and established itself as a leader in the Internet and

eCommerce space. The bank followed it up with offering several e-

Commerce services like Bill Payments, Funds Transfers and CorporateBanking over the net. The internet is a critical element of UNION BANK OF

INDIA Banks award winning multi-channel strategy that is one of the main

engines of growth for the bank. Between 2000 and 2004, the bank has been

able to successfully move over 70 percent of routine banking transactions

from the branch to the other delivery channels, thus increasing overall

efficiency. Currently, only 25 percent of all transactions take place through

branches and 75 percent through other delivery channels. This reduction in

routine transactions through the branch has enabled UNION BANK OFINDIA Bank to aggressively use its branch network as customer acquisition

units. On an average, UNION BANK OF INDIA Bank adds 300,000 customers

a month, which is among the highest in the world.


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ChannelsShare of Transactions

March 2000

Share of Transactions

March 2004

Branches 94 % 25 %

ATM's 3 % 43 %

Internet &

Mobile2 % 21 %

Call Centers 1 % 11 %

Reaping The Benefits

A powerful, scalable and flexible technology platform is essential for banks

to manage growth and compete successfully. And Finacle provides just the

right platform to UNION BANK OF INDIA Bank thus fueling its growth.

The bank has successfully leveraged the power of Finacle and has deployed

the solution in the areas of core banking, consumer e-banking, corporate e-

banking and CRM. With Finacle, UNION BANK OF INDIA Bank has also

gained the flexibility to easily develop new products targeted at specific

segments such as UNION BANK OF INDIA Bank Young Stars- a product

targeting children.


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UNION BANK OF INDIA Bank is today recognized as a clear leader in the

region and has won numerous accolades worldwide for its technology-

driven initiatives. In 2003, the bank received the best multi-channel

strategy award from The Banker magazine and this year it was rated as the

2nd best retail bank in Asia by The Asian Banker Journal. The bank has

effectively used technology as a strategic differentiator, thus not only

redefining the rules of banking in India, but also showcasing how

technology can help in transforming a banks business.

Union Bank Of India Online Services are available through the Internet.

Internet Banking is the facility which allows the customer to do banking

Transactions Through The Internet. Union Bank Of India Online Bankingoffers a convenient way of banking to the customers and his banking needs

can be sourced without him physically visiting any of the branches, some

times right at his business place, residence, market or even while traveling.

Union Bank Of India Online Service is available to the customers of Core

Banking Branches of the Bank.


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Services offered through Union Bank Of India Online Banking are:

Account Information :

The user can get the information of the operative accounts, deposit

accounts, loan accounts and all other accounts.

Transfer Of Funds :Under this option the user gets the facility to transfer funds between

different accounts.

Bills :This option is meant to facilitate payment of bills.

Requests :A variety of request options are available to the user under this

module. All the requests are to be attended end to end by the

Relationship Manager of the branch.

Mails :Every user of Union e-banking Retail service is linked to a

Relationship Manager who looks into the mails and requests made by

the user. For this purpose the user is provided with a mail option,

which he can use for communicating with the Relationship Manager.

Trade :The trade module gives query on status and history.

Limits :The limit module enables the corporate to query upon the various

limits sanctioned to it by the Bank. The corporate also gets the status

of utilization against each of these limits both in rupee terms and inpercentage terms.


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Currency :All the transaction options available in Union e-Banking corporate

module of Internet baking are in Indian rupee INR only.

Uploads :The Union e-Banking corporate allows bulk upload of both debits and

credits type of transactions. The corporates can use this facility for

salary disbursements, dealer credits and dealer debits where the

debits and credits are intended to several accounts at a time.

Customization :This option enables the user to customize the Internet Banking

options

Activity :The option enables the user to query on his own activities


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Bibliography

1)http://www.hcltech.com/financial-services

2)http://en.wikipedia.org/wiki/Core_banking

3)http://www.capgemini.com/services-and-solutions/by-

industry/financial-services/solutions/banking/core_banking/core-

banking-system-services/


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Conclusion

In todays time where every minute gone by is money spent people

need banking services that are instant and every where.

Core banking simply means technology driven banking which maked

life simple.

Core banking makes banking convenient.

core banking project on union bank

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