Core banking system can be defined as a system based on computer technology, which are linked by a local or global data network and providing a process of collecting, entering, transmitting, processing, storage, updating of data for the solution of problems of management of the Bank. Obviously, taking into account the requirements of completeness and integration, the ABS should cover the totality of the banking problems and to solve the complex problem of automation of banking activities. Such ABS are called integrated (ABS).
As we already know that ABS, like any automated system, consisting of funktsionalno the security of the parts, which in turn are divided into subsystems, complexes of programs or Workstations. The security part have to provide all the resources required for the operation of the system. The composition of the security part of the ABS subsystem includes technical, mathematical, informational, organizational, legal and linguistic support.
♦ The subsystem of technical support is the complex of hardware and technical means of computer technology and telecommunications equipment for the collection, processing and exchange of information with internal and external users.
Today technical security of the Bank consists of powerful computers with server architecture and PC for users workstations, modems, routers, multiplexers, communication channels, devices, uninterruptible power supplies, scanners, printing means, network adapters, and hubs and the like.
The f Subsystem of mathematical support is the complex of algorithms of economic and matematyk methods to process the data and automate the production of forms of accounting and statistical reporting.
The f Subsystem of information support is a combination of typical forms of primary documents and reporting forms, classification systems and information coding, data files that comprise the database and used for automated solving of banking.
The f Subsystem of organizational and legal support — a set of legal acts, instructive and methodological materials, establishing technology functioning of the ABC and the rights and responsibilities of the personnel operating the ABS.
0 Subsystem language is means of dialogue of system with the person, and the totality of language means programming, data definitions, queries to search information in the database, and the like.
If you take into account the functional part of the ABS, but today there is no standard regarding functional subsystems or Arm. However, there is a list of banking functions that can be fully or partially automated. Every developer ABS together with the customer information banking system is in fact determining the functional part on the stage of development and implementation.
Therefore, when studying the functional part of the ABS will take into account the subsystems which are necessary and important in banking activities, which are found practically in most ABS and have become “classics” if possible today, so to speak.
In modern banking institutions to highlight components that in the case of automation can be elements and parts of the ABS. We will focus on front-offices, back-offices and the core.
0 Front offices system components that are used to input initial information, the automation of labour of Bank employees in the workplace and direct interaction with clients or counterparties of the Bank.
In practice the following front offices of: individual business, corporate business and financial markets operations, remote client service in retail outlets and the like.
> Back office it components, designed for synthetic and analytical accounting documents, transactions, or transactions received from the front office.
Examples of back-office operations may include: recording transactions in a foreign currency, the account of various kinds of trade operations, accounting of operations with securities, the accounting of credits and the like.
Prayers to allocate the components having the functions simultaneously front — and back-office operations. These include: cash and settlement services clients, Deposit operations, corespondents relations, interbank payments, internal Bank operations and the like. These components are included in the operational day of the Bank (ODB), i.e. the set of operations the Bank conducts during the established operating rules of the time. These operations are carried out and are reflected immediately in the financial account, resulting in cash flows or values that balance changes. It is obvious that operational day of the Bank are the center or core to the banking business, because one way or another establishes the relationship with the front and the back offices.
As you can see, from the point of view of process automation and the banking sectors characterized by a large number of information links between the center or nucleus, which performs the accounting of all banking transactions with domestic clients, which are actually Bank employees and sounds-household customers, i.e. customers of the Bank, other banks and stakeholders in financial markets. In the General case the structural scheme of interrelations between the components of the process of Bank activity present in Fig.6.1.
Given the close relationship among the components in the process of Bank activity, functional structuring of the ABS to define separate modules. Obviously, it is possible to allocate two groups of modules: the front-offices and back-offices, which are defined by the respective activity.
Modules front office automates the process of primary accounting in banking depending on the basic element of the system, namely, document, operations, transactions, and more. This group of modules interacts with customers, other banks, foreign banks, electronic Commerce systems, banking payment systems, and the like.
Fig.6.1. The scheme of interconnections between the components in the process of Bank activity.
For example, the loan begins with the module’s front office, namely preparation of the credit agreement.
The modules of back-office automate the process of information processing modules received from front office to accounting banking operations, financial markets operations, the receipt of forms and files for reporting, analysis, banking and the like. For example, the accounting function of the loan granted will be the job of the back office. In General, a modular approach allows for the development of ABS to combine the modules into subsystems.
As you can see, in the process of automation of banking activities, functionally, we can distinguish the following subsystems: operational day of the Bank, management of cash operations, management of deposits, management of credit resources, control of foreign exchange operations, securities management, and accounting of interbank transactions, the interface of the EPS of the NBU, cash management for plastic payment cards, the formation of forms and files for accounting and statistical reporting, analysis of Bank activity.
Fig.6.2. Structural diagram of the functional parts of ABS.
If we analyze the flow of incoming and outgoing information, we can conclude that the majority of the subsystems uses as input and provides the user with the result of processing the original information. For example, if we take into account the subsystem “Management of credit resources”. From the client, the Bank receives input information regarding the desired loan amount and the results of operations for the last quarter or semester. In cooperation formed the credit agreement. The source of information is the prediction of customer’s payments for the repayment of the loan and interest thereon and
scheduling repayment process of repayment of loan and interest on it again there is a mutual exchange of information the Client submits the documents to the Bank to withdraw funds from your current account in the aforementioned amounts, and the Bank withdraws the funds and provides the client with a confirmation of the statement of accounts
You can determine that there are at least two subsystems that do not have their own input information is “the Formation of forms and files for accounting and statistical reporting and Analysis of Bank activity” it is Clear that these subsystems as input operate on the input data of all subsystems to provide holistic reporting for the Bank or to conduct a holistic analysis of banking activity
Considering the relationship among the components of the Bank’s activity and all of the above, it is possible to offer the block diagram of the ABS in figure 6 2 we Present below the characteristics of each of the major subsystems of the ABS in terms of functional purpose and some aspects of algorithmic solutions
Subsystem “Operatingin Bank”- is the core and basic subsystem of the ABS that should be part of any banking system, the NBU is certified for use in the banking system of Ukraine In some cases, it may be called differently, e.g. “Centralized accounting”, but functionally it is the same in all cases, the functionality of the subsystem must provide
> opening, closing and maintaining analytical, current, facial, clearing Bank accounts in accordance with the requirements of the standard urobah-that the banking system of Ukraine operates since 01 01 1998року,
& the establishment and maintenance of arrays of normative-reference software
*=> input and accounting entry of payment documents, Bank transactions, etc
& processing current, computational, analytical and facial balance accounts for the purpose of conducting analytical and synthetic accounting
*=>formation of the accounting records for each operating day
The main task of this subsystem is the reflection in accounting of all the Bank operations during the operational time For this account will be used for accounting, which are classified with varying degrees of detail the Most General of accounts, a synthetic account, the list and the numbering of which is determined by the chart of accounts of commercial banks of Ukraine
Detail information of the analytical accounts.
The structure of the accounts of analytical accounting determined by the National Bank of Ukraine. In accordance with the established structure, the numbering of accounts of the analytical account of each Bank develops its own. The structure of the analytical accounts presented in Fig. 6.3.
Fig.6.3. The analytical structure of the Bank account.
Segment 1 (AAAA) contains the number of the synthetic balance sheet account (4 digits), which determines the national Bank of Ukraine in the chart of accounts.
Segment 2 (K) contains one digit — digit key, which is control the key to your account and is determined for each analytic account separately. The algorithm of calculation of the discharge key are set by the national Bank of Ukraine. Control (key) category is designed for the validation of the account number and protects information and subjective user errors when entering data. To calculate discharge key segments 1,2,3 enter the account number and Bank code. For example, consider the calculation of the check digit for the account 1210В728011234 — Bank, MFO, which 300001
1. The recorded account for which you want to calculate checksum
discharge, in this form: 1234 30000 1210К72801
300001210К728011234 1371337137137137137 3000034100766037298
3. The resulting figures are added:
3+0+0+0+0+3+4+1+0+0+7+6+6+0+3+7+2+9+8 = 59
4. Add to this sum the number of digits of the account (in this example —
14): 59+14 = 73
5. The last category of the amount received multiply always “7”: 3*7=21
A segment (VVVVVVVVV) — defines the number of analytical accounts, the format or encoding of the banking institution’s discretion. As a rule, the segment 3 may be composed of two segments of the ER — code of the client — contractor and SSS — specification or a serial number of the account. In the simplest case, the segment 3 can contain the sequence number of the client — contractor and the length of the accounts in this case will be less than 14 characters.
The exception is the account of the budget and state extra-budgetary funds of Ukraine, for which the order of formation of accounts occurs on a scheme proposed by the National Bank of Ukraine.
Subsystem operational day of the Bank must provide an initial analytical opening of Bank accounts on the above standard patterns and the algorithm for computing the check digit.
A subsystem of access and permissions is designed to provide credentials and access Bank staff to the information database according to job responsibilities. Functional subsystem does the following:
<=> input, deletion and correction of information in the guide “Bank Employees”;
& keeping directories and classifiers: “System privileges” and “Financial authority “, “both Official duties “, “business unit “;
*=> the purpose of password to officials to secure access to the ABS;
*=> provides access to details, tables, database files according to a given distribution of powers and prevents unauthorized access to ABS.
Subsystem of control of cash transactions is designed to automate banking transactions with cash in national and foreign currency and their accounting. Functional subsystem automates:
>work the cash register receipt and the introduction of petty cash documents;
^work debit cash & debit cash introduction of documents;
> working the evening cash register, working in operational hours and the introduction of petty cash documents;
Roboto cash counting and cash collection processes, cash;
Setting g cash transactions for the purpose of deduction and Deposit in the Bank’s income from fees;
G work on security of cash and accounting for cash reinforcements of military registration offices, balance sheet and off-balance branches of the Bank;
> work on accounting values and documents of the strict reporting in the cash vault;
G currency operating cash and currency exchange points;
G the formation of the internal reporting forms: cash reimbursement and disbursement journals and such.
It should be noted that the subsystem of management of cash transactions may be independent or to be part of a subsystem of operational day of Bank. In addition to cash operations in foreign currency can enter into the composition of the management subsystem operations with foreign currency. In the authors ‘ opinion the optimal variant of realization of office automation front — and back-office there are appropriate automated work place of cashier, chief cashier workstation, cashier workstation of evening cash Desk, arm accountant-controller’s cash transactions in the system operational day of the Bank. An effective approach to automation of the cash work is the separation of the distribution and the authorization of appropriate officials, namely cashiers, senior cashiers and head. the counter in the subsystem of operational day of Bank.
The subsystem of management of deposits is meant to automate the maintenance of physical and legal persons in the implementation of Deposit operations, i.e. the introduction of temporary free funds on Deposit accounts in the Bank. Functional subsystem is responsible for:
& entry of documents and agreements on the implementation of Deposit transactions;
*=> the accounting of Depositary operations;
^the accrual of interest on Deposit accounts;
<=> formation of the reporting forms on the activities of the Bank in the Deposit market.
Today commercial banks offer various kinds of deposits with the aim of attracting free funds deposited in the Bank. Available and the various technological approaches to the organization of work on deposits. The first classic — the investor is offered when opening the account a savings passbook for implementation and accounting for them, the second — when the depositor is issued a plastic card to service a Deposit account and the third — when it comes to deposits, which have characteristics of securities, such as savings and certificate of Deposit. Therefore, this subsystem is interconnected with subsystems manage cash transactions, operation day of Bank and calculations by plastic cards.
Subsystem management of credit resources is intended for automation of functions of employees of the credit Department of the Bank in the preparation, granting and repayment of loans and interest thereon. Functional subsystem is responsible for:
G automation of the analysis of the financial condition of the borrower;
G automated determines the creditworthiness of the borrower;
Prognozuvannya and assessment of risk in lending;
G preparation and accounting for credit transactions;
G interest on loan agreements;
G maintenance of documents on repayment of credit and interest on them;
G scheduling of repayment of loans and interest on them;
G the drafting and consideration of agreements on the extension of credit;
G the definition, accounting and monitoring of loan repayment;
G maintenance and adjustment of interest rates on transactions for credit and extension, prosrochennym interest and the like;
Reformuvannya and analysis of portfolio of credit resources and determine the size of the mandatory ‘mandatory reserves.
This subsystem is interconnected with a subsystem of operation day of Bank which are carried out accounting for credit transactions for the issuing and repayment of the loan, accounting for interest payments, debt and so on.
The subsystem of management of foreign currency transactions designed to automate the totality of banking operations involving foreign currencies. Functionally, this subsystem provides:
G the conduct of the official and commercial exchange rates;
G daily automated recalculation of amounts in foreign currency accounts in equivalent of national currency;
G accounting the exchange and trade transactions in foreign currency;
Pagacova and the introduction of the banking format messages MT 100 or MT-200 for transmission by means of telecommunication network SWIFT banks to non-residents;
G accounting of transactions performed by the Bank on the interbank currency exchange;
G the formation of forms and files for reporting on the activities of the Bank in the foreign exchange market.
It should be noted that the implementation of the management subsystem operations with foreign currency in case of support in the ABS multi-valuetest, i.e. the implementation and recording of transactions in national and foreign currencies. In some cases, to automate the operations with currency introduces foreign exchange transaction day of the Bank, which is separate, Autonomous within the foreign exchange Department or office.
The subsystem of management of securities is intended to automate the functions of employees of the division of securities for securities trading and account for related transactions. It should be noted that the securities division at banking institutions carry out their activities guided by the legal framework of the State Commission on securities and stock market (SCSSM) and the banking legislation. The actual operation of the recorder is completely controlled by the SCSSM. Therefore, the securities Commission provides and maintains the software on the activities of the Registrar and Depository activities. From the ABS remain the following functions:
G the account of operations with shares of its own issue;
Robic operations with debt securities (promissory notes, certificates, shares in open joint stock companies);
G the account of operations on the stock market;
Avtomatizatsia portfolio securities.
G automation of forecasting the state of the stock market.
The subsystem accounting of interbank transactions designed to meet their own Bank’s operations. This subsystem is closely connected with a subsystem of operation day of the Bank and functionally provides:
G automated payroll employees of the Bank;
Automatizace accounting of fixed assets of the Bank, intangible assets and low-value, high-wear items;
G automated depreciation of fixed assets and intangible assets and accounting;
G automation of accounting operations in the warehouse;
G automation of administrative expenses and cash in the subreport;
G automation of accounting of income and expenses of the Bank, identifying the current performance;
G the formation of forms of reporting on internal activities;
G automation of tax accounting and compiling tax declarations and annexes.
The subsystem interface SANBU intended for generation and exchange of relevant types of files that complies with certain standards, the EPS of the NBU in the case of interbank electronic payments. Functionally it provides automated:
> the introduction of inter-Bank payment documents;
Forming and issuing a session exchange And the RM-NBU;
G preparation of files the initial or outgoing payments;
G processing of files of incoming interbank payments;
G providing information on the status of exchange interbank electronic payments;
G dynamic displays of process of interbank settlement in correspondent accounts or internal subcoracoid;
G protection of electronic payment documents by applying digital signatures and encryption;
G control over the processing of files for electronic payments by providing the relevant files for the result of the adoption.
Management subsystem calculations for plastic payment cards is intended for automation of clearing settlements of physical persons with use of plastic payment cards. Functionally, the subsystem provides automation of:
G service and account for the movement of funds on card accounts of their clients;
G maintenance and records of transactions with customers that do not have open card accounts in the Bank;
G non-cash customer service in retail outlets using POS-terminals;
G customer service and account transactions at ATMs for the purpose of issue or cash;
G accounting offsets and income on transactions with payment cards.
A subsystem of formation of forms and files for accounting and statistical reporting is intended for drawing up of forms and files for accounting and statistical reporting to provide internal and external users. Functional subsystem automates:
G the production of daily, weekly, monthly, quarterly and annual reporting files provided in the prescribed manner by the NBU;
G compilation of reporting forms for internal users, such as daily turnover balance, turnover balance sheets, cash journals, etc.;
G formation and printing the information and documents necessary for client service, namely, extracts from accounts, electronic payment documents, etc.;
G formation and provide the necessary reporting forms the main or parent Bank;
G preparation of reporting forms in accordance with the established procedure to the state tax service, law enforcement, and the like.
Input information for generating statistical reports files is in the database subsystem operating day of the Bank, and the subsystem of generating of files and reporting forms automated form is appropriate according to established standards. NBU provides banks commercial AWP “Statetest” that allows you to create files stat-reporting according to accepted standards and the latest regulatory requirements. Arm “Statetest” cannot take into account the features of all available ABS commercial banks for the import of required data from the database in WSS ABS. Therefore, the problem can be solved manually enter a specific, usually summary information in APM “Statetest” corresponding template for the formation of output files from statistical reports. Every financial institution reports to the repository of statistical reports of the NBU files with corresponding indicators, where they are processed and form required reporting forms.
Some commercial banks have their own software for generating statistical reports files. However, the support and changes regarding new indicators, forms, or standards is not as rapid as in the NBU. In General, the primary objective AWP “Statetest” is to monitor and provide the correct files for reporting that are automated are formed by means of ABS in commercial banks. In cases when the Bank does not generate an ABS file reporting AWP “Statetest”have the ability to enter information and create the necessary files indicators.
Subsystem analysis of the activity of the Bank is designed to solve analytical tasks of OLAP class about the main activities of the Bank. Functional subsystem provides:
Renals the Bank to meet standards of economic activity of the NBU;
G analysis of income, expenses, profit and profitability of the Bank ;
G analysis of the structure of liabilities;
G analysis of the structure of assets;
G analysis of the consolidated balance sheet and in terms of classes, sections, groups;
G analysis of the implementation of the business plan of income and expenses;
G the analysis of the distribution and development funds of the Bank.