Core Bank In Axis Bank

8/4/2019 Core Bank In Axis Bank

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SHIVANI SODAH- 53

NIMISHA KHANNA- 25

NATASHA MISTRY- 33

DEVANSH THAPAR- 55

VISHAL JAIN-43

DHRUV AJMERA - 01

FEBRUARY 2011


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Understanding Core Banking

History

Company Profile

Products

Services

SWOT Analysis

STP Analysis

Core Banking of Axis Bank


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Core Banking is normally defined as the business conducted bya banking institution with its retail and small business

customers.

Nowadays, most banks use core banking applications to

support their operations where CORE stands for "CentralizedOnline Real-time Exchange". This basically means that all the

bank's branches access applications from centralized

datacenters.

Normal core banking functions will include deposit accounts,loans, mortgages and payments. Banks make these services

available across multiple channels like ATMs, Internet banking,

and branches.


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Core banking solutions are banking applications on a platform

enabling a phased, strategic approach that is intended to allow banksto improve operations, reduce costs, and be prepared for growth.

An overall service-oriented-architecture (SOA) helps banks reducethe risk that can result from manual data entry and out-of-date

information, increases management information and review, andavoids the potential disruption to business caused by replacing entiresystems.

The platform where communication technology and informationtechnology are merged to suit core needs of banking is known asCore Banking Solutions. Here, computer software is developed toperform core operations of banking like recording of transactions,passbook maintenance, interest calculations on loans and deposits,customer records, balance of payments and withdrawal.


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This software is installed at different branches of bank and then

interconnected by means of communication lines like telephone,

satellite, internet etc. It allows the user (customers) to operate

accounts from any branch if it has installed core banking

solutions.

Core banking systems typically include deposit, loan and credit-processing capabilities, with interfaces to general ledger systems

and reporting tools.

Strategic spending on these systems is based on a combination

of service-oriented architecture and supporting technologies thatcreate extensible, agile architectures.


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Limited Professional Manpower to be utilized more effectively. Customer can have anywhere, more convenient and easier

banking.

ATM, Internet Banking, Mobile Banking, Payment Gateways,

Referral Business. More Strong and economical way for MIS.

Reduction in Branch Manpower by 15-20%

Additional Manpower available for Marketing, Recovery and

Personalized banking. Instant Information availability for decision support.

Quick and Accurate Implementation of Policies


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Improved Recovery Process causing reduction on recoverycosts, NPA Provisions

Innovative, redefined or improved processes (e.g. Inter Branch

Reconciliation) causing reduction in Manpower at Head Office

Reduction in Software maintenance at Branch and Head Office

Centralized Printing and Backup resulting in reduction in

capital and revenue expenditure on printing and backup devices

and media at branches

Electronic Transactions with Other Financial Institutions

Increased Speed in working resulting in more business

opportunities and reduction in penalties, legal expenses etc


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Today Urban Co-operative Banks are facing stiff competition from Private

Sector and Multinational Banks. The Urban Co-operative banks have upper

hand in terms of services with human-touch, with very tightly knit

relationship with the customer. However with fast-track lifestyles, customer

needs are growing at much faster pace and UCBs are finding it difficult to

cope up with it.

UCBs now need to upgrade their total infrastructural facilities in order to

face this challenge.

To ensure that UCBs can maintain customer loyalty, gain a competitive edge

and meet the challenges of a changing market, banks need to build strong

information technology infrastructure.

If the UCBs upgrade their infrastructure with strong IT setup and

revolutionary changes in management setup and rise to the level at par with

PSBs then they will certainly have an edge over PSBs in terms of

relationship based banking.


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Axis Bank, previously called UTI Bank.

The first of the new private banks to have begunoperations in 1994, after the Government of India allowednew private banks to be established.

Joint venture- Unit Trust of India (UTI-I).Life Insurance Corporation of India(LIC).

General Insurance Corporation Ltd.

National Insurance Company Ltd.

The New India Assurance Company.

The Oriental Insurance Corporation

United Insurance Company Ltd.


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Founded -Ahmedabad, 1994.

Headquarters -Mumbai, India

Key people - Shikha Sharma, MD & CEO

Industry-Financial Commercial banks.

Market share -20%

Employees -13,389 (2009).


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PRODUCT

S

LOANSCREDI

T

CARD

SAVINGS

UTI

MUTUR

AL

FUND


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Personal banking

ACCOUNTS CARDS

TEAM DEPOSITS GOLD CARD

FIXED DEPOSIT GOLD PLUS CARD

RECURRING DEPOSITS SILVER AND SILVER CARD


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Corporate banking

ACCOUNTS SERVICES

NORMAL CURRENT

ACCOUNTS

PRIVATE EQUITY

TRUST CURRENT

ACCOUNTS

CAPITAL MARKET

FUNDING

E-BANKING


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Retail BankingDeposit schemes

Loan and advances

Personal loanHousing loan

Cards

Auto loans

Consumer durables


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StrengthsSupport of various promoters

High level of services

Knowledge Indian market

Weakness

Not having good market

Market capitalization is very low

Not been fully able to position itself

correctly


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OpportunitiesGrowing Indian Market

In the global market

People are becoming more service

oriented

Threats

Foreign banks

Govt. banks

Private banks


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SegmentationDemographics

Location-Metro and Divisional cities

Occupation-Business personsSalaried class(both Govt. and private)

Working women

Age-Senior citizens

Minor


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Positioning

FEB 11

Axis bank has positioned itself as a bank which gives

higher standard of services through produces innovation for

the diverse need of individual and corporate clients ,so theywant to highlight following points in their positioning

statement :

Customer centric.

Service oriented product innovation.


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The Bank is a key client of Finacle Universal Banking Solution

(UBS) having already deployed Finacle core banking, e-

banking and loan origination solutions.

Finacles highly rich functionality and new generation

architecture provides comprehensive coverage of treasury

products and their derivatives across foreign exchange, money

markets and securities. It has powerful STP capability,

integrated front-middle-back office capability, tremendous

flexibility and scalability. The modular-yet-integrated designensures a best-of-breed treasury solution seamlessly integrated

with the rest of Finacle Universal Banking Solution.


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Finacle, the universal banking solution from Infosys,empowers banks to transform their business leveraging

technology. The solution addresses the core banking, e-

banking, treasury, wealth management, CRM, and cash

management requirements of universal, retail, corporate,

community and private banks worldwide.

Finacle has been architected out of years of experience with

global banks and offers several powerful and differentiating

features making it one of the most comprehensive, flexible and

scalable solutions in its class.


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Finacle products address the following requirements of retail, corporate and universal banks :

Advisor Alerts

Core banking

Core banking for RRBs

CRM

Customer Analytics

Direct banking e-banking

Finance tools

Inclusion

Islamic banking

Mobile banking

M-Commerce Operational Data Store

Treasury

Wealth management


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Documents

Core Bank In Axis Bank