Full Form of CBS
Core Banking Solutions
CBS Full Form is Core Banking Solutions. CBS is a process that is finished in a centralized environment that is under which any information regarding the account of a customer such as profession, financial dealings, family members, income, etc saved in the Bank’s Central Server which is available for access to all networked branches. The ‘core’ in the same means Centralized Online Real-time Environment. Depending on the needs and size of a bank, it could be used for limited or all operations. This task is made functional with the help of advanced software.
Core Banking became a possibility with the emergence of telecommunication and computer technology that enabled information to be shared among bank branches efficiently. Before the 1970s, the transaction would take a day to be reflected in the customer’s account because every branch had their respective servers, as well as the data from the server in every branch, was delivered in a batch to the servers located in data centres at the end of the day (abbreviated as EoD). These solutions have greatly helped in streamlining the whole banking process and enhanced the bank-customer relation by fully utilising the technological advancements.
In CBS, computer software is created for the performance of core banking operations such as recording of transactions, interest calculations on deposits and loans, the balance of payments, withdrawal, and customer records. This software connects the branches by means of telephones, the Internet, and satellites. It enables the customers of banks to monitor their accounts from any branch provided it has CBS installed. All of these technological measures show one thing and that is these CBS are extremely important for banking operations and it is no surprise when it is stated that CBS form part of the biggest expenses of banks.