Milestones in a CBS Implementation Life Cycle

1.Product Vendor (PV) Selection: - A typical implementation is preceded by a vendor selection exercise involving soliciting of RFI (Request For Information) and RFP (Request For Information). The RFP shall assign specific benchmarks, entry criteria, response parameters, bidding pre-requisites etc. Based on RFP responses, the bank may conduct multiple screenings to finally zeroise on the product vendor. As a precursor to the selection announcement some banks may ask the CBS vendor to conduct Product Walk Through (PWT) and Proof Of Concept (POC) with a full scale demo. The RFP response also details commercials info, costing, implementation timelines proposed, methodology details etc.
2.System Integrator (SI) Selection:- Some banks especially the large ones opt for a system integrator who shall take the ownership of implementation, liaise with the vendor, ensure timelines are complied, conduct functional acceptance checks / testing on behalf of the bank before migration or go-live etc. As SI teams bring specialized cutting edge skills to the table, the implementation related risks are managed to some extent for the bank.
3.System Familiarization and Business Requirement (BR) Analysis:- The bank furnished the BR to the PV under advice to SI. The vendor commences familiarization exercise of the new system to the business users. Concurrently requirements are discussed, deliberated and analyzed pursuant to the next step of GAP Analysis.
4.GAP Analysis: - Based on the BR, the PV prepares the list of GAPs – functional, technical and preparation of Prioritization GAPs List (PGL). As part of PGL evaluation the GAPs are segregated as
a. Statutory and hence will be developed.
b. Must have GAPs that the bank feels as compulsory for development as it
has critical impact on their business.
c. Other GAPs which shall be taken up for evaluation at a later date based on
availability of time and bandwidth.
5.Technical Architecture Design: - Normally the SI in joint consultation with PV prepare the technical design and incorporate the same into the bank’s IT architecture.
6.System Development – Conformance to Requirements: - The SI confirms to the bank once the development is completed that the build is ready to be installed into test.
7. Integration and Functional Testing: - Integration testing is done to check if all the different components developed independently work in unison as per required / expected functionality in the integration phase. After integration testing is completed a final functional testing (or acceptance testing) is performed to certify that the system developed confirms to the agreed requirements.
8.Data Migration: - One of the most critical part of the implementation relates to data migration from legacy disparate systems to the new centralized one. The migration tool has to be customized by the PV to the data features / parameters and specifications of the source systems, test migration is done to validate for accuracy, precision and completeness followed by full scale migration.

There are two approaches to data migration.
a) Big Bang Migration Approach;- Under this approach the entire bank data (branches, overseas operations, support functions, back offices etc) are migrated in one instance / lot to the destination CBS system. This approach is risky and involves managing too many issues in a single tranche. Hence most banks desist from adopting this approach.
b)Phased Migration Approach: - Under the phased approach the migration is undertaken in a phased manner. A select list of bank’s businesses are taken and migrated initially. Based on the success of migration and quantum of problems / issues encountered, other branches and departments of the bank are taken up.
9.Post Live Support Mechanism: - Post live support is agreed between the bank and the vendor. Some implementations involve post live support being undertaken by the system integrator. As and when issues are encountered change requests are taken up with the vendor for redressal.
10.Defect and Change Management Framework: - A framework is designed on managing defects and resolution SLA’s are put in place.

CORE BANKING VENDORS & PRODUCTS

Vendor Application Software System
1 TEMENOS T24; T24 for Microfinance and Community Banking
(MCB) formerly
eMerge; GLOBUS; TEMENOS CoreBanking (TCB)
2 Oracle Financial Services Software (formerly i-flex Solutions)
Flexcube;
Microbanker; Finware
3 Infosys Technologies Finacle
4 FIS | Fidelity National Information Services (FNIS) Corebank, FIS Alltel
Systematics, Sanchez Profile, Horizon ACBS (Advanced Commercial Banking
System), Kordoba, ALLprofits, MiSER, BancPac, Metavante
5 TCS FS - Tata Consultancy Services Financial Solutions -
formerly FNS BaNCS - TCS BaNCS (formerly FNS Bancs - Financial Network
Services B@NCS-24)
6 Misys BankFusion Universal Banking, Equation, BankFusion
Equation,
Equation Islamic Banking, Midas Plus, BankFusion Midas (Bankmaster)
7 Fiserv ICBS (International) | Signature by Fiserv, - Fiserv
CBS (US);
Basys/Metabank; Catapult; Premier; Acumen
8 Sungard Ambit Ambit EBS (Enterprise Banking Suite) core
banking - Retail
banking, Corporate banking (formerly System Access Symbols)
9 SAP SAP for Banking, Corebanking; SAP R/3
10 Jack Henry & Associates Jack Henry Banking -
SilverLake; CIF 20/20;
Core Director for US market
11 Silverlake Axis Silverlake  - SIBS, Silverlake
Integrated Islamic
Banking System (SIIBS)
12 Datapro Inc Datapro eIBS (e-IBS) CORE
13 3i Infotech KASTLE
14 Open Solutions Inc (OSI) TCBS/TCCUS: DNA platform |
TCBS - The
Complete Banking Solution, TotalPlus (outsourced) core banking, TCCUS - The
Complete Credit Union Solution
15 Path Solutions iMAL
16 Polaris Intellect Suite - OrbiOne, BankWare; BankNow
17 Callatay & Wouters Thaler
18 Olympic ERI Bancaire Olympic
19 ICS -International Computer Systems ICS BANKS
20 InfrasoftTech OMNIEnterprise
21 ITS - International Turnkey Systems ETHIX total banking
solution | ITS
Core Banking Solution (Phoenix for ME), ITS Islamic Banking Solution
22 Nucleus Software FinnOne
23 Delta Delta-Bank
24 TCS FS - Tata Consultancy Services Financial Solutions -
formerly TKS-
Teknosoft TCS BaNCS private banking, QUARTZ core financial platform,
Quartz Securities, Quartz Payments, e-Portfolio
25 CGI Group RFS core banking + HORIZON CRM, Loan Origination (LOS), DMS
26 Neptune Software Rubikon universal core banking system (Java
platform - new 2008), Orbit microfinance retail banking, Equinox
27 Cobiscorp | Cobis Systems Corporation (Macosa SA, MicroBanx Systems merged) COBIS Core Banking | COBIS UBS (universal banking solution)
28 DataVision Software Data Mate Core Banking (India) - Micro Mate
microfinance, cooperative banking
29 Computer Sciences Corporation (CSC) Hogan, CSC/IBS, Celeriti, K3000
30 SAB SAB universal banking system (SAB2i) and Samic
31 HCL Infosystems HCL BancMate CBS core banking solution
32 Harland Financial Solutions PhoenixEFE
33 TOP Systems TOPAZ Banking, TOPAZ Microfinance, TOPAZ Trace
34 BankVision Software Core BankVision
35 BML Istisharat ICBS
36 ASI - Arango Software International ABANKS (AB@NKS) core banking
37 Allshare Banking Solutions Allshare Retail Bank Solution (Quaestor),
Private Bank Solution (Bank/View), e-Banking
38 Mindmill BankMill
39 Avaloq Avaloq Banking System
40 Microlink MiBS conventional and islamic universal core banking

For more information , you can access this following link.
http://www.inntron.com/core_banking.html

CORE BANKING PROCESSES INDEPTH: Part1

This section will take your learning indepth about core banking processes.
Following banking processes typically come under umbrella of core banking.
1. CUSTOMER CREATION
a) Retail or Corporate Customer : Adding details of customer, personal details ,
demographic details (Please read KYC norms ). Core applications provide
multiple
online checks like SDN check , AML check , deduplication etc before creation of
customer. Point to be noted that information to be captured for a retail
customer and corporate will be different.Generally vendor applications paint
the screen basis the customer type.
b)Power of attorney capture:the person who will have authority to act/ do
transactions on behalf of original customer.
c) Signature Capture: Core banking applications provide facility to add
signature,photos of Customer and POA , which will be stored online. Whenever
any transaction will be done by the customer then bank user can match the
signatures.
In case of multiple signatories in corporate scenario there can be rule for
signatures basis the account , amount etc
d) Others: defining special rates , special charges for customer. it will be
applied when this customer will do any transaction.
After saving all the details(general the demographic details) system generates an unique number called CIF (customer information file)number. Bank will attach all the accounts for this customer to this CIF. Now a days CIF solutions are very important to have 360 degree view of the customer.
All the accounts assets/liabilities across the Banking services uses the same CIF so that a single view of customer can be presented and enhance cross selling.

Understanding Banking

Banks provide services to its customers in multiple ways. It divides the services basis the customer type.

Retail Banking : All the services which a bank provides to its individual customer comes under Retail Banking. Ex. Opening saving and current account (CASA),Cheque Book services , debit cards , credit cards, wealth management, loans, fund transfer etc.

Corporate Banking: All the services which a bank provides to its corporate customer comes under corporate banking Ex. Cash management services , salary accounts , sweeping balances from multiple accounts to one account, trade solutions, treasury services, loans , fund transfers etc.

One thing you will notice that some of the solutions are common for both the segments corporate and retail. The difference is in the way bank facilitates to both the segments . For example a retail customer can do fund transfer by issuing a cheque , going to branch , through ACH , Internet banking etc. the common characteristic of a retail fund transfer will be that transaction amount will be low , single beneficiary will be there. where as in case of corporate the amount will be higher , fund transfer can be done for multiple customer in one shot , facility to upload the transaction by uploading a file which will consist of details of the transactions.

Come back to different type of banking . For better understanding i will divide the different services under several headers.

1. CORE BANKING
2. LENDING SERVICES (Loans/Leasing services)
3. CREDIT CARDS
4. SECURITIES
5. BROKERAGE SOLUTION
6. WEALTH MANAGEMENT
7. TREASURY SERVICES
8. TRADE FINANCE
9. LIQUIDITY MANAGEMENT
10.CASH MANAGEMENT SERVICES(Also known as transaction banking)

As this blog is mostly dedicated to CORE Banking, in this section I will make you aware about different services which comes under different headers. In later sections I will cover all the services provided under CORE Banking and will go in depth of each services.
1. CORE BANKING
Customer Creation, account opening (CASA),Debit Card, Term/Recurring
deposits ,payments/remittances,Teller solutions,etc
2. LENDING SERVICES
Personal/house/vehicle loans,commercial loans , leasing services, loan
syndication , collection etc
3. CREDIT CARDS
Card issuance , acquiring ,collection, gift cards etc
4. SECURITIES
Depository management, Channel finance ,Securities lending services etc
5. BROKERAGE SOLUTION
Retail and institutional trading stations,order management, Bank
payment ,Depository systems,Front Office, Middle Office Risk Management, Back
Office Clearing ,Settlement and Accounting solutions
6. WEALTH MANAGEMENT
structured products,relationship services,Financial Need Analysis,Brokerage ,
Alternate/innovative investments,Mutual Fund Sevices etc
7. TREASURY SERVICES
Money Markets, REPO , Fixed Income ,FX etc
8. TRADE FINANCE
LC , Gaurantees , Collections
9. LIQUIDITY MANAGEMENT
Sweeps,

GARTNER MAGIC QUADRANT

The Gartner Magic Quadrant (MQ) is a proprietary research tool developed by Gartner Inc., a US based research and advisory firm. According to Gartner, the Magic Quadrant aims to provide a qualitative analysis into a market and its direction, maturity and participants, thus possibly enabling a company to be a stronger competitor for that market[1].
Their analyses are conducted for several specific technical industries and are updated every 1 – 2 years.
Gartner rates vendors upon two criteria: completeness of vision and ability to execute. Using different qualifiers per criteria for the varying industries, the Magic Quadrant then rates the participants along each of these parameters. Gartner does not share these component scores with the participant. Then, using a methodology which Gartner does not disclose, these component scores lead to a vendor position in one of four quadrants:
1. Leaders score higher on both criteria; the ability to execute and completeness of vision. Typically larger industry developed businesses with vision and potential for expansion.
2. Challengers score higher the ability to execute and lower on the completeness of vision. Typically larger, settled businesses with minimal future plans for that industry.
3. Visionaries score lower on the ability to execute and higher on the completeness of vision. Typically smaller companies that are unloading their planned potential.
4. Niche players score lower on both criteria: the ability to execute and completeness of vision. Typically new additions to the Magic Quadrant, or market fledglings.