Finacle Core Banking Solution - PDF

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Core Banking Solution
      Core Banking Solution

           The dramatically changed world of finance and business today, is
           building up pressure for banks to explore new possibilities by
           abandoning the familiar and embracing the unconventional.
           Competition, too, is compelling banks to be agile and innovate

           In this milieu, what really enables banks to build a lasting
           competitive advantage is the ability to continuously innovate,
           achieve differentiation and respond quickly to dynamic business
           challenges. There is no doubt that an efficient and adaptive core
           banking solution is integral to the business strategy of a bank
           geared to meet the challenges posed by the changed and
           dynamic environment.

           Finacle core banking solution is a comprehensive, integrated yet
           modular business solution that effectively addresses the
Finacle    strategic and day-to-day challenges faced by banks. It is highly
           parameterizable providing that much-needed flexibility to
Core       innovate and adapt to a dynamic environment.
           The solution has an integrated CRM module enabling banks to
Solution   offer a rich and differentiated value proposition to customers.
           The layered Service Oriented Architecture (SOA), STP
           capabilities, Web-enabled technology and 24X7 operations
           ensure multi-channel, multi-country and multi-currency
           implementations. The functionality-rich modules in the solution
           provide banks with a varied palette of features to continuously
           innovate on their product and service offerings. From the services
           innovation perspective, Finacle offers a comprehensive and
           unified customer repository with capabilities to educate and
           empower customers. With Finacle core banking solution, banks
           can meet the challenges of managing change, competition,
           compliance and customer demands effectively.
       Enterprise Channels and

                                 Payment Networks

                                  Credit Bureaus

                                 Back-end Systems


                                 Rating Agencies

                                   Market Feeds

                                   Card Issuers

Enterprise Customer Information                   Wealth Management
Finacle provides a comprehensive solution
to leverage customer information and create       Finacle core banking solution enables banks
differentiated customer experience through        to offer a wide range of wealth management
the Enterprise Customer Information File          products to cater to its affluent and high net
(CIF). It empowers banks to manage the            worth customer base. The wealth
various life-cycle stages in their relationship   management module supports rule-based
with the customer. Comprehensive                  definition. It also supports configuration of
segmentation information, including               features, structure, commission,
demographics, psychographics, financials          redemptions, relationship pricing, customer
and product preferences, is captured and          communication and a wide range of related
presented through a unified view. This view       properties and entities for structured
presents information on products and              products, distribution of insurance products
services availed within the core banking          and distribution of mutual funds. The module
solution and across multiple back-end             is tightly integrated with the core banking and
systems. Inquiry, creation and maintenance        CRM solutions, ensuring unique customer
of the CIF are enabled through flexible and       definition, unified customer portfolio view and
user-definable templates while supporting         seamless transaction processing.
compliance KYC and AML mandates.

                                                  Corporate Banking
Consumer Banking

Finacle core banking solution empowers            Finacle core banking solution presents a
banks to define simple and comprehensive          powerful range of offerings for corporate
products through its flexible product             banking - from simple products such as
definition capability. Parameterization of        overdrafts and cash term loans to complex
product features is enabled for reuse of          ones such as securitization and
components, resulting in faster rollout of new    syndication. The commercial lending
products. Each product can be associated          module is rich in functionalities such as
with a wide range of properties to help banks     m u l t i - c u r re n c y d i s b u r s e m e n t s a n d
create innovative products. In addition to the    repayments, flexible and varied interest rate
standard product offerings, consumer              setup, commitment fee setup,
banking products that can be configured           crystallization, amortization and debt
include multi-currency accounts, structured       consolidation. The centralized limits and
deposits, top up deposits, master term            collateral function is multi-currency and
deposits, top up loans, revolving loans, loans    hierarchy enabled thus empowering banks
with flexible repayment schedules, offset         to support collateral based lending and
products, mortgages and securitization.           online exposure monitoring.

Trade Finance                                    •   Standing orders integrated with the
                                                     payment systems, enabled for multi-
The trade finance module is integrated               currency and having auto-execution
seamlessly with the core banking solution to         capabilities
give an end-to-end perspective to the trade
finance needs of a bank. Fully integrated with   •   Liquidity management supporting
                                                     notional pooling and target balancing
the payment system and exchange rate
setup, the module supports multicurrency
processing of trade products such as:            •   Feature-rich bill payment feature
                                                     supporting multicurrency payments and
•   Documentary credit                               collections
•   Forward contract                             •   Remittances offering comprehensive
                                                     inter-bank and intra-bank funds transfer
•   Import and export financing
•   Letter of guarantee
                                                 •   Payments enabled for Straight Through
                                                     Processing (STP)
Islamic Banking
                                                 •   Flexible and feature-rich clearing service
To cater to the increasing global demand for
                                                     supporting both paper-based and
Shariah compliant banking products and               image-based clearing
services, a dedicated module complying with
AAOIFI standards and Shariah principles,         •   Automated exception and approval
supports Islamic banking in Finacle. This            management with referral for financial
module supports products across                      and non-financial exceptions
investment and financing such as
Mudarabah, Murabaha, Ijarah, Tawarruq,           Reusable Business Components
Musharaka and Istisna. The module also           Finacle core banking solution supports the
supports Hijri calendar along with               following business enabler functions that
parameterizable product features that            can be defined by the bank and reused
address, among other things, pool                across various cross-functional solutions:
management, profit sharing logic and Zakat.
                                                 •   Interest feature with support for
                                                     definition of differential and slab-based
Functional Services                                  interest rates
Finacle core banking solution offers a range     •   Rule-based Signature Verification
of mainstream and bank-definable functional          System (SVS)
services that help bundle products with
services, enabling banks to achieve              •   Exchange rate structure with multi-
differentiation.                                     tiered definition facility

                                                     Finacle Core Banking Solution

•   Tax structure definition and application            Infrastructure
    of withholding tax for defined events
•   Event-based charges with provision for              Finacle core banking solution empowers
    online and batch collection of charges              users with a wide range of utilities to enhance
                                                        operational efficiency and facilitate ease of
•   Support for preferential pricing and
                                                        use. These include:
    discounts, both adhoc and based on
    customer segments                                   •   24 X 7 capabilities to operate round-the-
•   Inventory management                                    clock through branches and channels
                                                            even during batch job execution and
•   Elaborate channel rules and channel-
                                                            day-end operations
    based differential pricing of charges and
    interest                                            •   Integrated, secure and scalable
•   Rebates, clawbacks, subsidies, planned                  reporting infrastructure to meet various
    p re p a y m e n t s a n d m u l t i - s o u rc e       reporting needs
    repayment configuration capabilities in
                                                        •   Ease of integration with industry
    retail loans
                                                            standard-based framework to integrate
•   Direct Selling Agent (DSA) feature with                 with existing and external systems
    capabilities for sub-DSA, turnover and
    commissions calculations                            •   Single Sign-on (SSO) for uniform and
                                                            common authentication
•   Extensive framework for bank
    management with user definition                     •   Sophisticated security management at
    capabilities, audit trail features, reporting           application, database and user levels
    and exception management                                with inbuilt checks and role-based
Accounting Backbone
                                                        •   Support for multiple calendars such as
Finacle core banking solution has an inbuilt
                                                            Gregorian, Hijri and Buddha
integrated financial and accounting
management system that caters to multi-                 •   Batch Job Scheduler (BJS) to automate
currency and hierarchical bank structures                   invocation, execution and monitoring of
comprising multiple branches and profit                     batch jobs at defined schedules
centers. The integrated General Ledger
                                                        •   Finacle Scripting Studio to extend the
supports real-time online updating of
                                                            solution beyond parameters, to include
transactions generated, providing the bank
                                                            bank definable business rules and logic
with the facility to accurately generate its
                                                            for behavior and outcome of business
financial position at any point of time.
The transaction manager provides the facility
to auto generate batch and online                       •   BPEL/BPML based workflow for
transactions while processing large                         automation of sequential business
transaction volumes, complete with                          processes with reduced manual
validations and defined checks.                             intervention

Differentiated Product Spread

Finacle core banking solution offers an unlimited palette of features for banks to
design and deploy products for varying market segments. The product bundling
capabilities of the solution offer a wide range of possibilities for banks to create
products with innovative features. The facilities provided for differential pricing,
channel rules and customization through Finacle Studio – the scripting engine,
empower banks to continuously innovate and extend their suite of products,
across segments.

Agile Operations

The Service Oriented Architecture (SOA) enables the IT team at the bank to
effect changes without touching the base code, ensuring lesser vendor
dependency and faster adaptability to changing business conditions.

Robust Cross-sell Framework

The CIF and CRM capabilities in Finacle offer a unified view of the customer
across the entire solution and across multiple back-end applications, enabling
the bank to view the customer from a completely informed angle. This
empowers banks to effectively manage customer relationships and
aggressively explore cross-sell opportunities.

Increased Operational Efficiencies and Productivity

Finacle core banking solution supports business event automation and process
orchestration, thus eliminating manual tasks and reducing process time. The
elimination of error and data redundancies also results in increased branch
productivity. Straight Through Processing (STP) abilities enhance reduction in
turnaround and processing time, increasing output and enabling speedy
completion of tasks.

                                                         Finacle Core Banking Solution
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