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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….

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  • 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

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    Ronniee Gupta | DGM

    UCO Bank
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    Government of Jharkhand, Ranchi
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    Bank of the Philippine Islands (BPI)
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    DCB Bank Ltd
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    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
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    Frithjof Ramb | Vice President

    SBI- Frankfurt, Germany
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