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Features of new-age digital Core Banking Systems (Part 1)

Updated On : July 2016  |  by Amol S. Khanvilkar

Core banking systems currently used by most retail financial institutions across the world are today highly overdue for a major overhaul. These are decade old systems with patches installed on them like band-aids or duct tape. If banks want to seriously compete in today's Digital Age, then it's high time for them to bite the bullet and get serious about their core conversion.

Today, research from different consulting agencies show that only 4% of financial institutions plan to replace or overhaul their existing core banking systems in the next three years. At such pace of things, it would require 25 years or more for the entire BFS (Banking and Financial Services) sector to replace all their legacy systems.

For banks to maintain their competitive edge, the pace of change for Core banking system in this Digital Age is clearly unacceptable.

We will have to keep in mind that many of these core banking systems were originally developed back in the 80s and 90s. Even if the CBS being used by your bank is relatively new, there's a reasonable possibility that it has not been built for the realities of today.

This would be like fighting the next war with weapons of yesteryears war.

Key Challenges

Banks need to focus on key factors, which make the core banking transformation a successful experience. Broadly speaking, the key challenges in core banking transformation are:

  • Aligning technology architecture with bank's goals and future plans.
  • Measuring and verifying vendor capabilities and credentials.
  • Management of legacy core applications and assessing the impact of change in earlier technology with newer technology architecture.

To be continued….

Also Read

CLIENT SPEAK

  • CBS

    “The Bank is associated with M/S Nelito since 2002. M/S Nelito Systems Ltd has been our CBS vendor since 2009. The Products, quality of service offered by them are excellent. They have a very good support team and are trained enough for handling any type of situation.”

    D K Kandpal | Vice President (IT)

    Nainital Bank
  • MIS ADF

    “Good & Co-operative.”

    Ronniee Gupta | DGM

    UCO Bank
  • CBS

    “We appreciate your local team who continuously supported & assisted our team to meet the goal.”

    Nagendra Nath Sinha | Principal Secretary IT

    Government of Jharkhand, Ranchi
  • CBS

    Knowledge and service provided to the bank is beyond expectation. And we would definitely engage and recommend solution to others .

    Rachelle F. Rivas | IT Project Manager (Senior Manager)

    Bank of the Philippine Islands (BPI)
  • CBS

    • As Vendor strict adherence to process & procedures
    • Risk Mitigants in Place
    • Flexible to customer requirements

    Dinesh Negi | VP (Clg)

    DCB Bank Ltd
  • Custom Application Development testimonial

    Bank has implemented CBS of Nelito Ltd in the year 2008-09 in phase manner. Also integrated RTGS/NEFT, CTS, MMS etc which help us in smooth automation of banking operation.

    K.T. Wadia | CEO

    The Sutex Co-op bank Ltd
  • CBS

    Experience during development of Rating Engine Module has been good in the context of commitment to meet timelines & lot of hard work has been put by Nelito's team.

    Ashuthsoh Satsangi | VP-Operations

    SMERA
  • CBS

    Everything was successfully implemented and tested. The implementation was professionally done in a very efficient and cooperative manner. Migration was very smooth.

    Frithjof Ramb | Vice President

    SBI- Frankfurt, Germany
  • CBS

    Nelito and its team has always been supportive and efficient in achieving the tasks set up by the Dept. Apps developed by the software engineers for the Public Health Dept have proved to be excellent among the top competitors and have been acclaimed for its effective service delivery to the end user at the grass root level which is the foremost object of any Govt organization. Many thanks for the sincere efforts.

    Sanjay Kamlakar | Under Secretary to GoM

    Govt of Maharashtra
  • DGM

    "We appreciate Nelito team who were always on time and responsive to our needs and changing ideas. They worked efficiently from the project inception to its completion in a timely and professional manner. Their understanding of this space has been invaluable to the success and launch of 'PMAY CLSS' app."

    Susanta K. Padhi | DGM

    National Housing Bank