What does Core Financial Services Solutions comprise of?
Table of Contents:
Reasons for the introduction of the CFSS scheme 2020
An RBI report denotes that “By September 2025, the RBI requires NBFCs with ten or more branches to install Core Financial Services Solutions (CFSS). The CFSS would offer a smooth user interface with an end-to-end digital journey for full life cycle handling, similar to banks' Core Banking System (CBS).”
Meaning of CFSS:
Core Financial Services Solution (CFSS) is akin to the Core Banking Solution (CBS) adopted by banks.
The CFSS will provide for seamless customer interface in digital offerings and transactions relating to products and services with an anywhere / anytime facility,
CFSS also enables integration of NBFCs’ functions, besides providing centralized database and accounting records.
Benefits of CFSS:
By cutting down on the amount of time needed to connect to numerous branches, CFSS increases operational efficiency. Due to this, banks can process transactions quickly regardless of the customer's physical location.
CFSS offers a seamless customer experience for digital transactions involving goods and services at any time or place.
A suitable Management Information System (MIS) could be created by CFSS for both internal use and regulatory reporting.
Since these technologies require fewer human resources to operate, banks can rely on them to cut operating costs.
Reasons for the introduction of the CFSS scheme 2020:
The following reasons could be stated for the introduction of the CFSS scheme 2020:
By starting again and erasing all the non-compliance concerns that emerged owing to non-submission made by the firms registered under Indian law, the Ministry of Corporate Affairs intended to reduce the compliance burden placed upon the companies while introducing the CFSS scheme 2020.
This program is especially advantageous for businesses since it gives them a single chance to complete any outstanding compliance requirements by submitting the required paperwork to the MCA 21 registry, including annual filings, without incurring increased late fines.
The CFSS scheme allows the companies to correct any submission-related issues and begin fresh as a completely complying organization.
Conclusion
NBFCs must put in place a Core Financial Service Solution to satisfy expanding consumer demands. NBFCs require IT support to take part in their operations and address the difficulties of a dynamic market. Any sector can reduce operating costs by employing IT, and banks can provide clients with competitively priced goods & services.
At SynoFin, we have created the most comprehensive CFSS system with the following capabilities:
New-age, feature-rich, SaaS-based lending system, with a flexible pricing model
Highly configurable - you can make changes in days instead of weeks
Great support with super-fast implementation
Ready-made connectors available for migration within 3 weeks - from popular lending systems to SynoFin
For more details visit: https://www.synofin.tech/