Standard Chartered Bank

Topic:
Management Information System

Muhammad Nayab Gul

131 (Eve.)
8th Sem. BBA (Hons.)

Department of Management Sciences

The
Islamia University of Bahawalpur, Pakistan
 Table of Contents

S. No Content Page No
1. Introduction 03

2. Introduction of Standard Chartered Bank 04

3. Vision & Mission Statement 05

4. Main Services 06

5. Business Areas 08

6. Information System 09

7. Description of Departments 10

8. IT In Standard Chartered Bank 12

9. Hierarchy of IT Department 13

10. Management Information System 15

11. EBBS (Electronic Basic Banking System) 17

12. EBBS - Advantages & Disadvantages 18

13. ECAP (Electronic Card Processing System) 19

14. ECAP - Benefits 19

15. Data Flow Diagrams (DFD) 23

16. Suggestions & Recommendations 25

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 17. Bibliography 26

Introduction:

The main objective of management information (MI) is the possession of the necessary
information on operational performance of the regular organization for planning and control.
Traditional techniques such as intuition, general, personal whims and prestige, etc. are now
considered unnecessary in the process of decision making. Modern Management is constantly
looking for specific quantitative information that can help analyze the alternatives proposed and
those who choose its decision. Thus, the functions of modern management information are more
popularly known as "Information Management". And the system by which information is
communicated to management so-called "Management Information System (MIS)”.

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Introduction of Standard Chartered Bank

Standard Chartered – leading the way in Asia, Africa and the Middle East

Standard Chartered Bank (Pvt. Ltd) name comes in 1969 by the uniting of two banks the Chartered
banking concern of Republic of India Australia and China and Standard banking concern of British
people South Africa. This is a multinational financial services company with headquarters based in
London, United Kingdom and active in seventy countries and more. It has over 1,700 branches and
outlets with staf around 80,000 people.

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Standard Chartered Bank is a universal bank that operates in both banks commercial bank and
investment bank. It is listed on LSE (London Stock Exchange), SEHK (Hong Kong Stock Exchange)
and NSE (National Stock Exchange of India). The biggest shareholder is Temasek Holdings.

Standard Chartered Bank is the oldest branches of foreign banks in Pakistan with over 160
branches throughout the country. Account of Standard Chartered Bank in Pakistan s can be traces
from 1863 when the hired depository financial institution of India Australia and People's Republic
of China to launching the companionship in Karachi.

Vision Statement:

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

Mission Statement:

To create exceeding value for our clients investors and staff done market leading in providing
innovative shariah law complaints products and answer and by adopting and living our core belief.

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Main Services:

Consumer Banking

Standard Charted provides services for

 Mortgages

 Credit Cards

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  Personal Loans

 Auto Loans

 Islamic Banking

 Wealth Management products.

In order to maximize customer convenience, they offer

 24-hour Phone Banking

 eStatements

 SMS Banking

 ATM Cards and VISA Debit Cards

 Online Banking

Wholesale Banking:

Wholesale banking provides

 Transactional banking

 Debt Capital Markets

 Corporate Finance

 Derivatives & Fx Options

 Commodity Finance and deposit products.

 Treasury

Islamic Banking:

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Standard Chartered Saadiq Islamic Banking dedicated team ofers comprehensive international
banking and a wide range of financial products compliant with Shariah law based on Islamic
values.

Priority Banking:

Priority banking is a new way of banking that understands what is significant to you through
perfective tense services unequalled benefits and solution.

SME Banking:

Standard Chartered Small Medium Enterprise banking provides services for Small to medium size
companies to expand their enterprise.

 Tijarat Accounts

 Business Installment Loans

 Industry Specific Solutions

Business Areas:

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Information System:

As Standard Chartered started their business in Pakistan in 2006, so they are using information
system since the start of their business in Pakistan, there were no PRE-IS era of Standard

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Chartered bank in Pakistan. At the time of acquisition of Union Bank of Pakistan, the Union bank
was using their own core banking solution which was then got shifted under one system. The
actual conversion happened on 17 th September 2006, when Standard Chartered cut over the
Union Bank systems. With the help of information technology Standard Chartered bank record the
daily transactions that took place from all over the Pakistan into a centralized database in real time
which means there is no Batch processing is taking place in Standard Charted all over the Pakistan.
Every bank branch is an online branch which is directly connected to the centralized server to keep
the data up to date to avoid any problems.

As Time is money and due to IS measure chartered banking concern make thousands of
proceedings per day in concept IS makes unit procedure large indefinite amount More area
simpleton and dependable. Due to IS employees can easily connect with diferent branches
consumer divine service gets built online banking emerged and lot of others benefits.

Standard Chartered Online is an innovative Online Banking religious service that you can seamster
to suit of clothes your accurate banking needs. It gives you accessible pear-shaped the finance
employment ranging from day to day account transactions to the coin time financial information..
Now you can manage your finances anytime, anywhere.

Description of Departments:

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Business Intelligence Unit (BIU):

The business intelligence unit (BIU) department provides valuable information to the bank
regarding to the new products. BIU gives detailed analysis of any product data provided by
Information technology department.

Legal & Compliance:

The legal and compliance department is playing a very important role in this organization. The
department is responsible for all the legal work of the bank. They have to make sure whether
everything is going according to the government policies and whether or not the organization is
following all the rules of STATE BANK OF PAKISTAN.

Credit & Collections:

The department is very vital in its functionality. That’s the reason why Standard Chartered pays so
much importance to it. The department performs several important functions for the organization.
Some of them are

 Loans Sanction

 Loans Recovery & Collection

Phone Banking:

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Another consumer banking department which is solely responsible for phone banking issues and
at the same time they have to make sure the user is having the same level of personalized services
that would expect in branches.

Complaint Management:

Complaint management department is responsible for complaints received from customer via
Phone, Email, Web and providing them support on timely manners.

Finance Department:

The department is very vital in its functionality. That’s the reason why Standard Chartered pays so
much importance to it. The department performs several important functions for the organization.
Some of them are

 Financial Forecasting

 Capital Budgeting

 Credit Management

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IT In Standard Chartered Bank:

As IT is playing a vital role in this organization, the bank has state of the art IT infrastructure which
is working 24/7 to ensure that everything is running smoothly and the bank systems are not
exposed to the outside world. IT Department itself is a huge department in Standard Charted
bank, having many sub departments under its area. The IT department provides services, support
to other departments as well as also acting as a backbone of the Core banking system of Standard
Chartered Bank. In broader terms the IT department is in charge of

 All Communications throughout the branches & data centers, which includes Voice, Data,
Fax, Wireless mediums.

 Monitoring the service’s of existing applications running inside the organization.

 Monitoring of Critical applications which need 99% uptime.

 Providing service to on production applications

 Network’s and other connectivity mediums

 Security of existing & new applications

 Security of networks

 In-house security issue’s

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Hierarchy of IT Department:

Networks & Communications:

The department is responsible for managing all the network and communication that took place
inside the bank which includes Internet, Intranet, Extranet, Voice, Fax services. The core
responsibilities of this department is

 Managing existing data network.

 Managing the voice network.

 Managing the Fax network.

Service Management:

The department is responsible for providing services to the new as well as existing applications
running inside the organization. The department is also responsible for monitoring the application
uptime and providing maximum uptime to the critical applications to avoid any financial & service
loss and assigning the privileges to the employees.

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Security & Risk:

The department is responsible for all the security issues that could happen in the existing system
which includes Internet Banking securities, network securities, external & local access etc.

Technical Support Services:

The department is responsible for all the hardware’s that are placed inside the organization; they
provide support and services to any kind of hardware issues from a single desktop pc to their
servers.

Banking Software’s:

Standard Charted has more than 80 diferent business software’s running to fulfill their business
needs. Each software is specifically designed for a specific department and intended to perform
some specific task in order to help the bank run their everyday business process efectively. Some
software’s are cross functional helping diferent departments.

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Management Information System:

Definition: Management Information Systems (MIS) is the term given to the discipline focused on
the integration of computer systems with the aims and objectives on an organization.

The evolution and direction of info engineering tools assists executives and the universal work
force in acting any tasks accompanying to the physical process of information. MIS and concern
systems are especially utile in the bite of concern information and the product of reports to be
exploited as tools for decision making.

Applications of MIS:
With computers existence as present as they are 24-hour interval location s hardly for any size
concern that does not rely extensively on their IT scheme. However there are several fact fields in
which MIS has become invaluable.

Strategy Support:

While computers cannot create concern strategies by themselves they can aid direction in
apprehension the personal efects of their strategies and aid enable efectual decision making.

MIS scheme can be exploited to transform information into info utile for decision making.
Computers can provide business statements and public presentation reports to aid in the
preparation, observance and execution of strategy.

MIS system provides a treasure function in that they collate into coherent reports unmanageable
volumes of accumulation that would otherwise be broadly inefectual to conclusion maker. By
studying these reports conclusion makers can identify patterns and trends that would have
remained unseen if the raw data were consulted manually.

MIS systems can also use this raw accumulation to run simulations theoretical scenarios that
response a reach of what if questions regarding alterations in strategy. For illustration MIS systems
can provide predictions about the result on income that an adjustment in terms would individual
on a product. These conclusion reinforcement Systems DSS enable many advised conclusion
fashioning within an endeavor than would be achievable without MIS system of rules.

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Data Processing:
Not exclusive do MIS systems allow for the bite of big amounts of concern information but they
also provide a valuable good welfare to the workforce. Where in the past business concern
information had to be manually pure for formation and psychoanalysis it can now be entered
quickly and easily onto a computer by an accumulation processor allowing for faster decision
fashioning and quicker reflexes for the endeavor as a whole.

Management by Objectives:

While MIS systems are extremely useful in generating applied mathematics reports and data
analytic thinking they can also be of use as a Management by Objectives MBO tool.

MBO is a management cognitive process by which managers and subordinates agree upon a series
of objectives for the underling to endeavor to achieve within a set clock time frame. Objectives are
set using the SMART quantitative relation that is objectives should be fact Measurable Agreed,
Realistic and Time Specific.

The aim of these objectives is to provide a set of key public presentation indicators by which an
endeavor can justice the public presentation of an worker or project. The achiever of any MBO
clinical depends upon the around-the-clock trailing of progress.

In tracking this performance it can be extremely utilitarian to shuffle use of an MIS system. Since
all smartness objectives are by distinctness measurable they can be tracked through with the
contemporaries of administration reports to be analyzed by conclusion maker.

Benefits of MIS:
The field of battle of MIS can deliver a extraordinary m benefits to enterprises in every
industriousness. Skilled organizations much as the association of MIS along with equal reviewed
journals much as MIS period continue to discovery and study new shipway to use MIS to achieve
concern objectives.

Core Competencies:
All marketplace directing endeavor volition rich person at afair one nucleus competence that is a
mathematical function they perform advisable than their competition. By building an exceptional
administration information system of rules into the enterprise it is applied to thrust out leading of
the competition. MIS systems provide the tools necessity to addition a bettor apprehension of the
marketplace as wellspring as a bettor apprehension of the endeavor itself.

Enhance Supply Chain Management:

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Better coverage of concern processes leads inevitably to a more aerodynamic product process
with the advisable info on the product procedure semen the power to improve the direction of the
provision concatenation including everything from the sourcing of materials to the manufacturing
and statistical distribution of the all over the product.

EBBS (Electronic Basic Banking System):

Core banking is the heart of any organization, Standard chartered core banking application is
“EBBS (Electronic Basic Banking System)” which is the actual strength of this bank. EBBS are the
single software suit that work on these basic modules;

 Saving / Current Accounts

 Customer Information System

 New Accounts

 Demand Deposits

 Clearings

 Time Deposits

 Loans

 Credit Lines

 Automatic Transfers

 Tax Information

 On-Line Transactions

 Authorizer

 Cashier’s Checks

 Construction Loans

 Sensitive Accounts

 Warnings

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Advantages:

 Make transaction from home.

 You can brand transfers and early changes piece while the depository financial institution is
shut.
 Most Banks if not all piece of work done an encrypted transmission channel with your info
 You can download a data file that holds your history info to easily reconcile your argument
with your fiscal direction software program QuickBooks MS currency KMyMoney Gnu hard
cash etc

Disadvantages:
 If the bank's server is down, you can't use it
 Some places will charge you for online access (many don't, however)
 Your net connation essential be operative in order of magnitude for you to rich person
entree galore
 Banks don’t display you how to use online finance precise advisable and those are usually
the ones with the non illogical user interface and untidy designing which makes it bad
easygoing for you to prison guard up something

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ECAP (Electronic Card Processing System):

Another core banking application that Standard Chartered is using is “ECAP (Electronic Card
Processing System)” which is used to manage all the Credit and Debit Cards of the account
holders. The software has these two basic modules

 Debit Card

 Credit Card

The most evident benefits of credit card processing system are:

 Stability and Safety. Credit card processing gateways are 24-hour stable, i.e. they always
function, and server breakdowns occur very rarely. 128 bit SSL encryption and other
certificate technologies shuffle it impossible action for hackers to read and modify credit
wag information

 Rapid Transactions. Especially if your e mercantilism shopping pushcart is furnished with a

one clink Buy function. This means that not lone you testament save large indefinite
quantity time with a bourgeois account your customers testament be able-bodied to
enough one signifier upon enrolment and point in time start purchase just by clicking.

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  Fully Automatable. Most e commercialism merchandiser accounts let their owners grip all
the minutes as wellspring as automatically physical process recognition identity card
information.

 24-hour Support. E-Commerce merchandiser service providers will usually ofer a free
customer support religious service which aid you to settle any questions without having to
query the processing depository financial institution directly.

 Global Access. You will be able to access your e mercantilism merchant chronicle control
Thomas Nelson Page from any country and any computing device letting you review
summary and dominance your credit entry card processing.

 Instant Statistics. The control condition Page of most e commercialism merchandiser

accounts gives you elaborate applied mathematics info regarding your consumers
placement age etc. your money flow (incomes, gateway expenses, totals, etc.), and other
important information, which can be vital when market strategies are being planned.

 Visa, MasterCard, etc. E-Commerce bourgeois accounts are able to process any type of Visa
and MasterCard s summation many Thomas More other credit entry card brands
depending on the locating and price of the processing banking concern.

Servers of Standard Chartered Bank:

Standard Chartered has a centralized server machines running day and night to ensure the
maximum uptime and top notch quality to their applications which dramatically support their
whole business process.

The bank servers resides in diferent cities and data center’s of Pakistan i.e. Karachi, Lahore,
Islamabad and all of them are interconnected with each other for real time data update and
synchronization.

As a rule stated by STATE BANK OF PAKISTAN; “A bank must have 3 years of customer data in their
servers.” To abide this rule, Standard Chartered stores the last 3+ years of data into their local
sever which are residing in Pakistani’s data centers for quick access of data and other issues.

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The bank archives the old data to their Main Server in Chennai, India which is the main server for
Middle East region. The Chennai server’s holds the archived data of all the Standard Chartered
branches in Middle East region and when any branch need to access the old data; they connect to
the Chennai servers and download the required data.

Standard Chartered is using IBM servers in Pakistan. The configuration of server depends upon the
load of work it handles and the application which is running on the server. If the application is
critical then the server is also of high configuration.

Networks in Standard Chartered Bank:

Networking is the milestone achieved by Standard Chartered bank which gives the integration
between information systems of various departments. Standard Chartered is using CISCO
networks to maximize the outcome and to enhance the communication quality within their
organization which results in the better service. Standard Chartered has diferent types of
network configuration for diferent scenarios; some of them are discussed below.

Local Area Network (LAN):

The local area network (LAN) is running inside the organization and providing ultimate
connectivity between the employees and other persons. There are some Workgroup applications
also running over their LAN for easy collaboration between the employees of same and diferent
departments. The LAN is not exposed to the outside world for security reasons and there is a
proxy server running for connectivity outside the organization which makes sure the internal
network is not exposed to the internet.

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Network Between Data Center’s:

As Standard Chartered has diferent servers located at diferent areas of Pakistan, so the
networking between them is necessary. Each data center is directly connected to another data
center using two links (i.e. Radio & Optical Fiber) because if one link goes down, there is a second

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one to give backup link, If a wired is cut of then the radio link is available for connectivity and if
there is a frequency block in radio link, there is a wired link to give backup to the network.

Each branch has two links, one is DXX which is connected to the nearest data center and another
link is VSAT which is connected to the second nearest data center to make sure branch keep
working if there is a problem occur in any one of the data centers.

Data Flow Diagrams (DFD):

Context Diagram of ATM Machine:

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Context Diagram Level 0 of ATM Machine:

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Weakness In Existing System:

Standard Charterer’s existing information technology to all of their needs without any error, and
the network terminology it is performed with an excellent in terms of quality and safety. The

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weakness in their legacy systems is that they only last 3 years of customer data stores in their local
server to the State Bank follows PAKISTAN law. But in some cases they have the old data from their
Chennai, India server that cost money to download and upload here.

Suggestions & Recommendations:

Standard Chartered Bank must store all their customer data in the local servers for faster access to
the old data and the money they spent to save the archived data can be downloaded from the
server Chennai.

Bibliography

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CASE STUDY: Standard Chartered Bank, 1 (2011). http://www.qualys.com/customers/casestudies/view/?
id=scbank

Pattee, A. (2011, April Friday). Standard Chartered Bank (Pakistan) Limited. MicroCapital , p. 1.

Rizwan, S. (2009). Management Information System of Standard Charterd Bank Pvt Ltd. Lahore: scribd.com.

Standard Chartered. (2011, Jun 06 Mon). Taipei Times .

standardchartered.com. (n.d.). Retrieved June 2, 2011, from Standard Chartered Bank:

http://www.standardchartered.com/pk

wikipedia.org. (n.d.). Retrieved June 2, 2011, from wikipedia:

http://en.wikipedia.org/wiki/Standard_Chartered

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