Standard Chartered Bank In Pakistan Information Technology Essay

A time ago in many organisations and businesses the manual method was used for making internal reporting which was usually an outcome of accounting system relating to some statistics which was time consuming relating to performance of management Before date had to be gathered manually by using manpower which required money and time both and then the data required was separated as required by the organisation for using purpose ,so it consumed a lot of time .This collection of data was then stored in a stores in cabinets and other storage places. Computer was initially used to keep track of the receivable and payables but soon applications were developed to give manager ideas about the sales and the stocks hence the term ‘MIS’ came out in reference to those applications ..Currently it is used in a systems like DSS ,RAPM ,retrieval of databases and e.t.c. and the list goes on . Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, project management and database retrieval application.( source : http://en.wikipedia.org/wiki/Management_information_system accessed on 20/12/2009)

“A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.”

Philip Kotler 2006

A management information system (MIS) is basically a subset of the controls which are internal to a business covering the application

People

Documents

Technologies

Procedures

by the help of the accounts of management to solve the issues relating to the businesses such as pricing ,costing strategies pertaining business issues. Management Information systems can be differentiated from the usual information systems due to the fact that they mainly used to analyse other information systems linked to activities of the organization operations (‘Brien, J (1999). Management Information Systems – Managing Information Technology Boston: Irwin McGraw-Hill.). Academically this term is used to interlink the human decision making to management information techniques such as  Decision Support Systems, Expert systems, and Executive information systems.

( ‘Brien, J (1999). Management Information Systems – Managing Information Technology Irwin McGraw-Hill)

It has been described as, “MIS ‘lives’ in the space that interlinks the sector of business with technology.. MIS combines with business the technology to get people the beneficial desired information they require in order to complete their task better/faster/smarter. Information is the blood of all organizations – making it vital for its survival more than ever. MIS professionals work as systems analysts, project managers, systems administrators, etc., interacting directly with staff and management through out the organization.” (http://www.sjsu.edu/isystems/ accessed 24/12/2009 )

Organization Introduction

The Standard Chartered Group was formed in 1869 through a merger of two banks: The Standard Bank of South Africa founded in 1863, and the Chartered Bank of India, Australia and China,founded in 1853.As its operations came under threat from nationalization programmes in the countries in which it was present in the 1970s, the bank sought expansion in developed countries, particularly the USA. A Standard Chartered Bank (HQ) in Singapore.(source: http://en.wikipedia.org/wiki/Standard_Chartered_Bank accessed 12/12/2009 ).In Pakistan standard Chartered merged in Grindlays’ operations, making Standard Chartered not only the largest foreign bank in the country, but the only one with branches in all four provinces.

OVERVIEW

Standard Chartered Bank (Pakistan) Limited is Pakistan’s oldest and largest foreign bank with over 150 branches in the country. The history of Standard Chartered in Pakistan dates back to 1863, when the Chartered Bank of India, Australia and China first established its operations in Karachi.(Source: http://en.wikipedia.org/wiki/Standard_Chartered_Bank_(Pakistan) accessed 12/12/2009 ).In 2006 Standard Chartered Bank acquired Pakistan’s Union Bank. On 30 December 2006, Standard Chartered merged Union Bank with its own subsidiary, Standard Chartered Bank (Pakistan), to create Pakistan’s sixth largest bank.

MAIN SERVICES:

Consumer Banking:

Standard Chartered provides a range of facilities which includes Mortgages, Personal Loan ,Islamic Banking Credit cards e.t.c. and in order to do it efficiently and effectively it also provides 24/7 telephone banking with other cards facilities..

Wholesale Banking:

Their Wholesale banking provides deposit products including serves of Corporate Finance and other various options such as Commodity finance e.t.c.

Islamic Banking:

Keeping the Islamic values in mind Standard Chartered Saadiq’s Banking team provides comprehensive international banking services including a wide range of Shariah compliant financial products.

VISION AND MISSION:

Vision

To be the preferred provider of Islamic financial products in the market.

Mission

To create exceptional value for our clients, investors and staff; through market leadership in providing innovative Shariah compliant products and solutions, and by adopting and living our core values.

AREAS OF BUSINESS:

Standard Chartered have branches in all the main 25 cities of Pakistan. It has more then 150 branches in Pakistan.

(Source : http://www.standardchartered.com/pk/personal/about-us/en/about-us.html )

TOTAL OFFICES AT NATIONAL AND INTERNATIONAL LEVEL:

In Pakistan Standard chartered is operating n more then 20 cities having more then 140 branches .Having a history of over a century in banking sector it operates with an exclusive global network of more then a 1000 branches in more then 60 countires from Asia to England and Srates employying more then 50,000 people cover across more then 85 nationalities The diversity is in its blood which helps it to grow day by day night by night.

MAIN OBJECTIVES

Standard Chartered Bank is an international bank, focused on the established and emerging markets of Asia, Africa, the Middle East and Latin America with an extensive global network of more than 600 offices in over 50 countries. The three principal business groups are Treasury, Consumer Banking and Corporate and Institutional Banking. Their main objective is to offer outstanding value to their customers by providing knowledgeable, efficient and reliable service in a personal, helpful and responsive manner. Central to this service philosophy is the professional consultative approach they take with each customer. By getting to know the customer better, they can identify the customer’s needs and match them with quality products which suit their best.

INFORMATION SYSTEM IN STANDARD CHARTERED

As standard chartered started their business in Pakistan in 2006 so as such there is no Pre-IS era of standard chartered bank in Pakistan. They are using IT since the start of their business in Pakistan. IT creates an evolution in whole world in every business and so in banking system. Now in standard chartered with the help of IS the daily transactions are recorded in branch computers and these branch computers are then connected to the main head office server so in this way they keep their daily process update on daily basis. As Time is money, and due to IS standard chartered bank make thousands of transactions per day. In fact, IS makes whole process much more quick, simple and reliable. Due to IS employees can easily connect with other branches, customer service get improved, online banking emerged and lot of others benefits. (Source : http://www.occ.treas.gov/handbook/mis.pdf ). Its Online Banking is unque which can be taileoed according to the desire of the customers making one to manager easily and timely.

Management Overview

Organisation Management Chart

Management Process Model

Source http://images.google.co.uk/imgres?imgurl=https://buildsecurityin.us-cert.gov/daisy/bsi/221-BSI/version/default/part/ImageData/data/overview-2.png&imgrefurl=https://buildsecurityin.us-cert.gov/daisy/bsi/articles/best-practices/incident/223-BSI.html&usg=__sGuTA20wjwAbHWUDfzNKCXZlS8w=&h=550&w=1110&sz=130&hl=en&start=8&um=1&tbnid=zmhVs0fuDcHQ9M:&tbnh=74&tbnw=150&prev=/images%3Fq%3Dmanagement%2Bprocess%2Bmodel%26hl%3Den%26sa%3DN%26um%3D1

Organization computing resources:

Software Resources:-

Following software’s are used for the functioning of our information system and

organization;

Application Software :-

Following application software’s are used in our organization and functioning of

our information system;

Microsoft Office

NOD32 Anti-Virus

Adobe Reader

System Software :-

Following application software’s are used in our organization and functioning of

our information system;

Operating System (Windows XP and Linux) for PC’s.

Windows 2003 server for mainframes.

Hardware Resources:-

Following hardware resources are required for the functionality of IS and

organization:

Personal computers

Canon Document Scanners

HP Printers

Networking cards

Currency counter

Coin counters

HP Digital Scanners

Dell Mainframes

Computing Type:-

In Standard chartered bank, they are using client/server network because it is accessible and the employees easily share the data and this network is cheaper than others and this is easily maintainable and manageable. All the data save in main server or HUB and employees can easily access it. This type of computing system provides an easy access and efficient flow of data, which increase the functionality of organization.

Organization transaction processing system

A Transaction Processing System (TPS) is a type of information system. TPSs collect, store, modify, and retrieve the transactions of an organization. A transaction is an event that generates or modifies data that is eventually stored in an information system. From a technical perspective, a Transaction Processing System (or Transaction Processing Monitor) monitors transaction programs, a special kind of programs. The essence of a transaction program is that it manages data that must be left in a consistent state. (Source :http://www.mainframes.in/sw/tp/tp.html )

TPS in Standard chartered bank:

Effective transaction processing system is working in Standard chartered bank that offer enterprise the means to manage the data flow quickly and timely through out

Payroll TPS

In Standard Chartered payroll TPS is designed to get information and record of the employ and then to calculate his/her annual earning. It get information about the employee from the employee’s department and from general ledger and send it to payroll TPS from where it links that information with the previous record and prepare a report which is forwarded to management.(source : http://www.cramster.com/other-math-answers-5-297600-cpi0.aspx) Management takes notice the “LN” record of the employee’s efficiency to work and may declare added bonus or other incentive. This report is checked and approved by the branch manager after which check is issued to the employee. And when that check is cashed, the record is updated in the general ledger as well as the master payroll (HUB)

Check

Passes by

Manager

Payroll TPS

Employee data

General

Ledger

Check

Issued to

Employee

Payroll

Master File

(HUB)

Employee Ledger -L

Customer Identification:

In Standard Chartered bank there is their own information management named software “Virses” is working which is connected to NADRA. So if any new client wants to open an account in the bank the system automatically send a request to NADRA to check and verify the customer ID number. Which helps the management to identify whether he/she is using his original ID card or not.

Management

NADRA

(customer

identification)

HUB

Virses

Input

(ID #)

Employees Record :

All employees are supposed to login when they enter the bank and logout on leaving, by tracing their thumb impressions on biometric device. This device is connected with the HUB which continuously makes record of their hours spent in the bank. Moreover, the bank has their own setup named “LN” which makes records of all the transactions made by an employee. This help management to monitor the working efficiency of an employee

Employee Job Login

Login

HUB

Biometric Device

& LN

Employee Job Logout

Login

Real time Banking:

In many circumstances the primary factor is speed. For example, when a customer withdraws a sum of money from his or her account the transactions are processed and the account balance updated as soon as possible, allowing both the bank and customer to keep track of funds.(Source : http://www.standardchartered.com/online-banking/en/index.html). The new transaction is send to LN. The LN enters the HUB where the specified file is accessed. The updates are made entered there and finally the update is done

Online Complains:

Standard Chartered bank allows the customer the option of online complains. (Source:http://answers.yahoo.com/question/index?qid=20070907055501AApxlvY).The customer submits the online complain which is then processed by Customer Service TPS which is linked by management and after the problem identification it is send to the concerned department

Advices

As all of the record of the customers are stored in main server (HUB) of Standard Chartered bank, so in case if someone account balance is getting near to zero the system automatically alert the management about that. Then manager take manual action and send him/her the advice (a letter, mail or phone call) to check the account balance.

Account Opening

This TPS is designed for opening a new account in the bank. Input: Give bio data, NIC no., income, city name. Process: Information send to the “virses”. Output: new account opened in the bank

Online Activity

Purpose: Transfer funds with the organization. Input: Concerned Branch code, city name, account title, amount & the transaction. Process: The information will send to organization server (HUB). Output: Transfer of fund to the concerned branch

ATM Card

Purpose: Easy with draw of cash.Input: Give bio data, income summary, company name, NIC.Process : NIC no. and bio data send to “virses” which directly linked to NADRA. If information is correct then it is forward to customer service centre. Output: Issue of credit card.

Car Financing

Purpose: Leasing a new car.Input: Account title, down payment amount. Process: the information is send to the HUB and verify the account of customer and make the

schedule for leasing for the given period of time. Output: Customer can get a new car.

Management information system

Relationship of MIS with TPS

MIS reports and summarizes the organization’s basic operations and these reports come from the basic transition processing systems. In case of our organization the TPS’s of ATM Cards, Payroll and Customer identification etc. provide the basic information about the organization’s activities. These activities are then summarized in the form of reports for the manager so that they can check whether the firm is working properly or not. (Source: http://answers.yahoo.com/question/index?qid=20070907055501AApxlvY) .If there are some flaws then they take control measures to fix those flaws

Transaction Management Information

Processing System

System

Transaction Management Information

Processing System

System

CONCLUSION

. This report discuses all the activities that the Management Information System perform in our selected organization “Standard Chartered Bank (Pakistan)”.The reports starts with the background history of the bank such as when it establish in Pakistan, the branches, pre and post era etc. It explains all the TPS how the transactions are made by the bank, using of these TPS from the new events such as account opening, new allowances etc to the routine work including cash and payments record, updating of records, payroll and the processing of the complaints. These TPS holds all the activities from the manager and employees to the customers. The report discuses the inbound and the outbound logistics and relate all the processes of TPS used in the bank with the MIS, enabling the bank to provide the quality and satisfactory services to their customers. Also includes the inter relations, of all the entities in the database of the bank. ERD diagram represents all these relations.

SUGGESTION

The bank is using the IS very efficiently and increasing its profitability, but still there are many things that should be improved. With the increase in the technology, the bank should made its IS up-to-date for providing best services to their customers and attracting more customers and increasing its productivity. The security of these system should be made. Credit cards system should be improved providing the unique facilities to their customers which the other banks has not yet introduce.