CFSS is proposed for NBFCs on similar lines of Core Banking Solutions (CBS) widely used by banks. CFSS guidelines provide a centralized accounting record and database, allowing NBFCs to integrate different functions onto a single platform, thus providing a seamless digital customer interface. CFSS brings all the related functions of an NBFC onto a single platform, enabling ease of access for their operations team and customers.
CFSS provides a user-friendly and easily navigable digital customer interface that allows customers to access NBFC services effortlessly through multiple channels.
CFSS enables customers to access NBFC services from anywhere, at any time, using any device. NBFCs should ensure that CFSS services are available 24×7 and accessible through multiple channels.
CFSS integrates different functions of an NBFC on a single platform, providing a seamless digital customer interface. The integration must include loan origination, servicing, and collection, among others.
The centralized accounting record and database of the CFSS enable NBFCs to access real-time customer data and transaction history. The centralization of accounts reduces the need to open multiple systems and minimizes the customer’s need to contact the operations team for most of their queries or requests. Ensuring a Robust, Secure and Scalable CFSS is vital for managing a centralized database.
CFSS provides reporting and MIS capabilities that enable NBFCs to track their performance and make informed decisions. Real-time reporting and MIS should be available and accessible through multiple channels.
In October 2021, RBI introduced SBR- Scale Based Regulations, that divided NBFCs into four layers:
CFSS is a step towards digitization and will help NBFCs enhance customer experience and fuel growth. CFSS is expected to revolutionize the customer experience of end-users while strengthening the financial system pertaining to NBFCs.
Nucleus Software’s solutions and products are designed and evolved to fulfil the CFSS mandates and provide an efficient, secure and scalable app and infra-architecture that can sustain over a decade while providing a seamless user experience. With Nucleus Software’s expertise and solutions, NBFCs can transform their technological landscapes towards a better and compliant future.
https://www.pwc.com/gx/en/banking-capital-markets/transaction-banking-compass/assets/pwc-transaction-banking-compass-nov-2012.pdf
https://www.crisil.com/content/dam/crisil/ourbusinesses/coalition/pdf/2022/09/CoalitionTBIndex1H22.pdf
https://www.mckinsey.com/industries/financial-services/our-insights/sustainability-in-global-transaction-banking-a-market-imperative
Senior tech lead,
Nucleus Software