Core Banking Solutions CBS - venkrajen.invenkrajen.in/docs/Core_Banking_Solutions_CBS.pdfCBS...
Transcript of Core Banking Solutions CBS - venkrajen.invenkrajen.in/docs/Core_Banking_Solutions_CBS.pdfCBS...
Core Banking solution -
CBS
V. Rajendran
Advocate and Cyber Law Consultant
URL: venkrajen.in
[email protected], [email protected]
+91-44-22473849; +91-9444073849
Evolution of Banking in India
• Pre Nationalisation era
• 1969 – First phase
• 1980 – Second phase
• Early 90’s – Globalisation, Privatisation,
Liberatlisation and Computerisation
• Entry of many private sector banks
• Foreign banks
• Competition – Pvt Sector Banks, PSBs, Foreign
Banks, RRBs, Co-op Sector
Computerisation in Banking
• Started with mechanisation- Punch Cards
• Data Entry jobs – Data Consolidation
• ALPMs – First phase of computerisation
– Stand-alone systems
– Every PC was a database
– unconnected PCs
– No LAN, No SWS, No C/S Architecture
– Easy, manageable, data privacy, secure
– Multiple data and data integrity issues
Mechanisation of processes
• Computerisation in banking was earlier
considered as mechanisation of processes and
later became a process re-engineering and
analysis of steps involved -
• Manual forms and computerised data entry
screens – Differences
• Data Storage – Manual and electronic
• Data Retrieval – Manual and electronic
• Process in a computer vis a vis manual
Computerisation in Banking - contd
Second phase – TBA (also called TBC or TBM)
• Every branch a data centre
• Database – Distributed database
• LAN – Connectivity – client Server
• Single Window Concept
• A Server connected to Nodes, Workstations, PCs,
Dumb terminals, diskless nodes, front-end
processors, minimum front-end jobs
Second Phase – TBA contd
• LAN Architecture
• LAN cabling - connectivity
• Topology – different types of topology
• Network – connectivity and security issues
• Data handling – Branch data
• Advantages: Security, better controls, Ease of
Use, Handling huge data at the branch level,
report generation, print-outs, Single Window
Computerisation in Banking - Terminology
• Mechanisation and computerisation
• Data and Information – Definition and usage
• Data Entry, Data Consolidation
• LAN and connectivity issues
• LAN and Network medium – cables used –
• Topology in LAN – Its use in banks
• Meaning and use of Single Window Concept
Second Phase – TBA contd
Constraints – Limitations – disadvantages
• Distributed data base
• Data Integrity and related issues
• Patch Management, Version Control
• Centralised data consolidation at HO/CO
• Service thro Electronic Delivery Channels like ATMs,
Internet Banking, Cards and Mobile Banking
• Permission and access through ABB or AWB or WAN
Computerisation in Banking - contd
Third phase – CBS
• Basically two significant ingredients
1. Centralised data centre
2. Connectivity and access from any branch
• Other features and advantages
• Electronic Delivery Channels: Meaning and
significance – Effective us through CBS
• Other electronic products: RTGS, NEFT, Funds,
HR, ERP-like environment
Core Banking Solution
• Essentials: 1. Centralised Data
– Data Centre, Primary, Secondary, DRS – DRC
– Data Warehouse, Data Mining
– Data base Server: DB, Appln servers
– Access from anywhere, any time
– Database Controls
– O/s controls
– Application controls
– Front-end processors, controls and validations
Core Banking Solution
• CBS Essentials: 2. network
• Connectivity: WAN
• Terrestrial lines: Wired - Cables, OFC
• Non Terrestrial: Wireless – Microwave Tower,
Radio, VSATs etc
• Network, bandwidth, constraints and features
• Network gadget: Modems, routers, switches etc
App Servers like CBS, ATMs, Firewall, webserver,
emails etc
Data - RDBMS
O/s
Branches, Users, Offices gettingConnected to the CBS
Typically, CBS is a layered approach
User
• Branches, users connect to the data centre through the net like CBS branchg, ATM connectivity, Internet Banking etc
• Sometimes from intranet ie inside the bank network and sometime from Internet ie user’s own system eg Internet Banking, Mobile etc
App Server
• Data flows through the telecom medium (WAN, cables, wireless, VSAT etc)
• Data reaches the app server eg CBS Application, ATM Switch etc
DB server and O/s
• Data reaches the database (mostly Oracle) ie the database server
• The database server sits on the O/s, normally a Unix server
CBS Design
• Depending upon the design in the particular
bank and the architecture planned, there are
other servers like a Load Balancers, CBS
application servers, Internet and web-server,
Firewalls, etc
• DMZ – Demilitarised Zone that protects the
critical servers from malware attacks and
ensures Intrusion Detection and Prevention and
does Unified Threat Management, Content
Filtering – Outgoing and incoming traffic
CBS – IT Department functions
• I T Dept has a crucial role at the Data Centre
• Security Admin duties on security policy, its
management, implementation, guidance to
others on security and related issues
• System admin duties on user creation, user
management, db admin etc
• Network admin duties like network issues
• Repository and library – e-library, version
control and related issues
Core Banking – some basics
• A Centralised Banking Application software
• Two fundamentals and pre-requisites of CBS:
– 1. Centralised database AND 2. connectivity
• No branch concept ie banking from any branch
and hence customer of the bank
• Consists of various components of banking
• ERP in banking –
• Mechanisation of existing process AND
introduction of new channels like ATMs made easy
Network architecture
• LAN in any branch and in admin offices
• WAN – global connectivity
• Sometimes VLANs wherever required
– Essentials of VLANs, features, necessity
– Security concerns in VLANs
– Data and information communication across network
• Data handling at the core centre and movement
of information in Internet and Intranet
Data Centres
• Data at the core centre
• Primary Data Centre
– Its location, features, criticality
• Secondary data centre
– seamless backup, features and capability, location
• Disaster Recovery Centre – DRS
– Where to locate, features, limited functionality,
seamless backup or with some limitations?
Courtesy: Internet – Finacle Screen
CBS – Screen (Courtesy: Finacle)
Data Entry Screens in CBS
Finacle – Data Entry Screen
CBS – Front end screen
CBS –Screen shots Specimen
Sample Screens - CBS
CBS –Screen shots Specimen
CBS –Screen shots Specimen
Questions ???
Thank you…..
V. RajendranURL : venkrajen.in
+91-44-22473849; +91-9444073849