Professional Documents
Culture Documents
Post Bank
Branch Post Bank
Post Bank Branch
Branch
Data flow
Title Function Description
Accounts Maintenance Functions General
(General) Account creation and association with different products, interest rates and transaction limits
Customer Accounts Maintenance with authorization
Security Register Maintenance General
Functions Approved Security/collateral Master Maintenance
Consolidated Updation for Securities/collaterals
Facility to link the securities to limits or to accounts, with definition as to whether primary or
secondary collateral
Security Register Maintenance with details like Charges Information, Margin, Insurance
Information, Income/Expenses Information and so on
Central Limits Maintenance General
Facility to maintain limits for customers or for accounts
Facility to maintain multiple limits for single accounts
These limits can have its own normal and penal interest rates
Savings Account / Current General, Opening of Accounts, Maintenance of accounts with authorization
Account A/c with or without cheque facility, Multiple products for savings bank definition with
Modification or product parameters
Key parameters includes, minimum balance to be maintained,
Define parameter for number of withdrawals allowed for any period and controlling of interest
payment if required, interest methods,
Inactive and dormancy period definition for marking accounts
Facility to define some charges for a/c dormancy, maintenance, opening closure if required and
so on
Facility for pass-sheet / passbook definitions
Facility to Deduct Tax at Source for a customer or for an account
Over Drafts granting facility if required with exception and also to reserve the amount along with
Overdrafts granting
Facility to specify Normal and Penal Rate of Interest for a casual Over Drafts
Title Function Description
Term Deposit General, Facility to define term deposit products (Fixed deposit, Cumulative or re-
Functions investment deposit, Recurring deposit and Flexi-Fixed deposit), Facility to handle
Certificate of Deposits and notice deposits , Facility to define term deposit products
with (amount as parameter, period as parameter, account numbering differently,
interest methods, the deposit and the interest amount flow details definition,
Automatic renewal, Receipt printing facility with inventory control, links to flexi
deposits, Overdue marking and so on)
Loans & Advances General, Different types of user definable Loan products (Housing loan, Vehicle loan,
Functions Education loan, and so on), Facility to bring up set of documents required for a
particular loan and allow entry for indicating whether obtained or not and to capture
date of submission
Outward Clearing General, Cleaning Transaction Code Maintenance, Clearing Reject reason Code
Functions Maintenance, Outward Clearing – General, Maintain Outward Clearing Zone
(creation of new zones with parameters, amendments to parameters, marking the
zones deleted if not required) Maintain parameter for direct credit to the account with
un-cleared status or credit to clearing account and subsequently credit to the
account as clear balance
Trade finance
Trade finance
Multiple Service
WAN
Connectivity
Delivery Channels
ATM Net-banking
Retail Banking
Telebanking
Corporate Banking
Data Mobile-banking
Treasury, Investment
CBS Call Center
Modules
MIS Reporting Other CBS Branch
Modules
Hardware
for CBS
CBS Architecture
Branch1 Branch n
CBS Architecture
CAP
CAP
CAP
CAP
ATM Internet
Switch Banking
Interface
Interface
Any Branch
Tele-
Banking Interface
Banking
Data Interface
Centre
Branch Interface Telephone
Network Network
POS
CBS Models
There are 2 popular models for CBS -
Thin Client Model - The entire database is
located on the central database server
located in the data center and the PCs in the
branch get connected to the Data Center via
CAP/ NAP using Leased Line with
ISDN/VSAT backup.
The Branch Server Model - There is partial
database inside the branch that can cater to
the branch customers for a day or more days
in case the branch is disconnected from Data
Center.
CBS Models
Thin Client Model - The cost is less as there is no
need for dedicated branch server also there are
savings on RDBMS, System software related cost.
But the bank has to ensure 99.5 % uptime of
connectivity.
The Branch Server Model - The cost is more due
to dedicated branch server, RDBMS, System
software costs. But if the connectivity is poor then
this option will still service the branch customers
for a day or more. After the link is restored then
there will be synchronization done between the
branch server and data center server using
pending transaction log files.
CBS Models
Some Vendors offer Thin Client Model
whereas some vendors offer Branch
Server model and still some offer both
the models of CBS. When connectivity
fails, the Thin Client model cannot work.
The bank has to decide on which model
is suitable for its branches considering
the type of connectivity available in the
region where majority of branches
considered suitable for conversion to
CBS are located.
Multiple delivery channels
Systems that provided AAA banking - Anytime
Anywhere Anyhow banking. They provided
multiple ways to the customer to access his
account
ATM - to withdraw money at any time of day
Telebanking - to get information about a/c on
the common telephone or even mobile.
Netbanking - to get information about a/c as
well as to carry out transactions using the
Internet.
Mobile banking
Multiple delivery channels
ABB - Any Branch Banking across their branches -
any branch of the bank can be used to carry out
any transaction.
Customer became bank customer not branch
customer.
All this was made possible by the adoption of the
Core Banking Solutions for centralised banking
by these new private sector banks. They had
setup a Data Center hosting CBS where entire
banks data would be stored and accessed
from. They had higher initial costs for setting up
DC & WAN.
Data Center
CBS Branch
ATM
Banks NAP
ASP’s NAP
CBS Branch Service Banks NAP
Provider’s
/Bank’s
Network
VSAT antenna
Things to ponder related to Postal Bank
Decide what products will be there in the postal bank and
what will covered by postal operations.
Utility services, mutual funds, money transfers- may be a
overlap
Look at what CBS gives and match it with new business
avenues that the Postal Bank is planning for.
CBS has many modules ( deposit, lending, trade finance,
CRM, General Ledger, MIS/DSS reports)
currently postal bank has only Depository operations.
Is it becoming a full fledged bank in the near future?
CBS is very massive considering what the Postal bank
needs today.
Don’t look only for mapping the existing products of postal
bank with CBS, look for what all you don’t need but is
supplied piggybacked?( that is a very large set).
Things to take care of
Just like BPR before CBS , BPR after CBS is needed. It will
lead to employee relocation, organizational changes.
It is better to have a CBS compliant scaled down single
package at other non CBS branches for consolidation of
data, reports.
About multi delivery channels- do a customer survey to find
out the response, it adds value.
Look for using biometric based ATM as who are my
customer? Can they use ATMs as they are today.
Mobile banking – yes, Netherlands postal bank uses for
product promotion.
Internet banking- who are my customers? New high end
customers how I am to attract? Do a customer survey before
starting the work for CBS and channels.
Things to take care of
Can someone develop a package/chop and make a
compact Postal CBS package?
Information security management to be planned
for, implemented in full spirit.
Employees education about the new technology
initiatives, e-learning is a good option.
Have a strong project committee. involve
employees from all levels of the organization.
CBS Life cycle
Core team formation
Business Plan and current Technology documents.
Justification for CBS.
Requirement study and preparation of user requirement specification
document.
CBS Product lookout
Gap analysis
RFP –evaluation metrics
Technical evaluation
Preparation for employee education &change management
Training ,help desks
Product walk through
Comparison
Commercial evaluation
Product selection
CBS Life Cycle
Project Initiation/Planning
•Project Kickoff
•Core Team Formation
•Steering Committee
•Project Planning
•Communication Planning
Data Migration
Conference Room Pilot
New Process
Simulation Run Implementation