CAIIB · ITDB · Chapter 9

Banking Software

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Information Technology and Digital Banking (Elective) — CAIIB.

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Q

Manual — Era / Description?

A

Era: Pre-1980; Description: Hand-written ledgers, day-books, balancing-books; trial balance done manually; passbook entries inked by hand.

Q

Mechanised — Era / Description?

A

Era: 1980-85; Description: Ledger Posting Machines (LPMs) and Advanced Ledger Posting Machines (ALPMs). Branches still standalone; data not networked.

Q

Standalone PC-based — Era / Description?

A

Era: 1985-95; Description: DOS / early Windows banking software on a single PC per branch (e.g., BankMaster, Bancs2000-era variants). Each branch had its own database; inter-branch reconciliation was a nightmare.

Q

Networked / Total Branch Automation (TBA) — Era / Description?

A

Era: 1995-2002; Description: LAN inside the branch; multiple terminals share one branch server; introduction of MICR clearing; but each branch was still a silo.

Q

Core Banking System (CBS) — Era / Description?

A

Era: 2002-present; Description: All branches connected to a central server; customer of the bank, not branch; anywhere-anytime banking; alternate channels (ATM, Internet, mobile, UPI) plug into the same CBS database.

Q

A. Core Banking Software — What it covers / Examples?

A

What it covers: Deposits, advances, treasury, money market, foreign exchange; Examples: Finacle, BaNCS, FlexCube, Profile, Ambit

Q

B. Bank Administration Software — What it covers / Examples?

A

What it covers: Payroll, HRIS / personal-information system, pension, provident fund, leave & travel; Examples: SAP HCM, Oracle PeopleSoft, in-house HRMS

Q

C. MIS Software — What it covers / Examples?

A

What it covers: Credit-risk management, balance sheet, audit, share accounting, regulatory reporting; Examples: SAS, Oracle Financial Services Analytical Applications (OFSAA), Moody's RiskAuthority

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