Management Information System of Dhaka Bank Essay Example

cost didn’t permit us to do so. If we had some more time, we could have prepared the report much better than we did.

Systems of Dhaka Bank is described briefly. Our report starts with the brief overview about the company. Then we will focus on the topic of our main interest, Information Systems of Dhaka Bank. There, we will discus about nature of the IS, IT department and infrastructure, and how different people perceiving the company’s IS. Finally we will mention the findings of the report. Acknowledgement We are taking this privilege to deliver our gratefulness to each and every people who are involved with us in every phase of our lives. Firstly, with Almighty Allah, we are grateful to our parents without whom we cannot be here.

They were beside us in every single situation and are still with us. Without the support of our parents, we could not be able to achieve our objectives and goals. Then we are thankful and grateful to our all teachers. They were always there with our parents and gave us all the needed education, manners, all the important lessons to live a perfect and honest life. We are grateful to our course instructor of Management Information System (MIS 405), Sharmin Islam who encouraged us to take such steps dealing with such a big company and provided us all the necessary helps.

She is a very helpful and friendly person and been always there, whenever we needed her. We are thankful to all the friends of us who have been very supportive. Without our friends we would not be able to have confidence in ourselves as they always kept trust

on us and provided all the helps to make this report. Without the help of Mr. Sajidul Huq and Fateul Islam we would not be able to prepare this report. Finally we are thankful to entire people who helped us to make our report.

Company

Overview Bangladesh economy has been experiencing a rapid growth since the '90s. Industrial and agricultural development, international trade, inflow of expatriate Bangladeshi workers' remittance, local and foreign investments in construction, communication, power, food processing and service enterprises ushered in an era of economic activities. Urbanization and lifestyle changes concurrent with the economic development created a demand for banking products and services to support the new initiatives as well as to canalize consumer investments in a profitable manner. A group of highly acclaimed businessmen of the country grouped together to responded to this need and established Dhaka Bank Limited in the year 1995.

Mission: To be the premier financial institution in the country providing high quality products and services backed by latest technology and a team of highly motivated personnel to deliver Excellence in Banking.

Vision: At Dhaka Bank, we draw our inspiration from the distant stars. Our team is committed to assure a standard that makes every banking transaction a pleasurable experience. Our endeavor is to offer you reliability, timely delivery, cutting edge technology, and tailored solution for business needs, global reach in trade and commerce and high yield on your investments.

Goal: Our people, products and processes are aligned to meet the demand of our discerning customers. Our goal is to achieve a distinction like the luminaries in the sky. Our prime objective is to deliver a quality that demonstrates a true reflection of

our vision Excellence in Banking.

Branches: The Bank has 37 branches across the country and a wide network of correspondents all over the world. The Bank has plans to open more branches in the current fiscal year to expand the network. Name of those branches are given below. Nature of the IS: The nature of the IS of the Dhaka Bank Limited is totally Computer Based Information System (CBIS). They try to use as less paper as they can. Though they use papers in their transaction but there IS is totally based on CBIS.

 Information Technology (IT) Department

Information Technology (IT) Department or the IT Department is one of the most important departments in the Dhaka Bank. It has around 32 employees. All of them are Computer Science Engineering (CSE) graduate. They are skilled enough to maintain the overall IS of the company properly. Through this IT Department, the Bank has launched Online Banking service, joined a countrywide shared ATM network and has introduced a co-branded credit card. A process is also underway to provide e-business facility to the bank's clientele through Online and Home banking solutions. Dhaka Bank Ltd. s the preferred choice in banking for friendly and personalized services, cutting edge technology, tailored solutions for business needs, global reach in trade and commerce and high yield on investments.

Investment: The Bank was incorporated as a public limited company under the Companies Act. 1994. The Bank started its commercial operation on July 05, 1995 with an authorized capital of Tk. 1,000 million and paid up capital of Tk. 100 million. The paid up capital of the Bank stood at Tk 1,289,501,900 as on June 30, 2006. The total

equity (capital and reserves) of the Bank as on June 30, 2006 stood at Tk 2,188,529,224.

Overall investment of the bank reached at Taka 6,132,618,801 by the year 2006. According to the Dhaka Bank officials, from that amount of money Taka 150,000,000 has been invested for the IT Department.

Information Technology (IT)

Infrastructure Information Technology Infrastructure as the shared technology resources that provide the platform for the firm’s specific information system application. The IT Infrastructure of the Dhaka Bank helps the organization to get some services that include. Data management services that store and manage corporate data and provide capabilities for analyzing the data. Application software services that provide enterprise-wide capabilities such as enterprise resource planning, customer relation management, supply chain management. And management systems that are shared the entire business units.

• IT management services that plan and develop the Infrastructure, coordinate with the business units for IT services, manage accounting for the IT expenditure, and provide project services.
• IT standards services that provide the firm and its business units with policies that determine which information technology will be used, when, and how.

IT Infrastructure Ecosystem. IT Infrastructure Ecosystem of the Dhaka Bank consists six major components that must be to provide the organization with a coherent IT infrastructure. Listed here are major technologies that the bank uses and suppliers fro each component.

Identify

"Input", "Output" and the "Process" in the given System. Electronic Banking with the Poor Increasing the outreach and sustainability of Microfinance through ICT Innovation, this is the institution its goal is recognized as an important part of poverty reduction strategies. It wants to deliver financial services at low cost. Because providing financial services to poor

people are expensive.

Poor people have small amounts of money, many live in sparsely populated areas, and they rarely have a credit history lenders can reference to make credit decision. Additionally, high transaction costs have limited the number of people who have access to formal financial services, especially those who are very poor or live in remote areas. Unfortunately, for decades, thousands of specialized microfinance institutions (MFIs) have wrestled with a difficult choice: struggle to cover costs by delivering services to these excluded populations, or earn profits by making larger loans to customers who are better off.

However, entrepreneurial banks and MFIs may finds that these customers (poor people), who once seemed beyond the frontier of formal financial services, are in fact a profitable and attractive market. In accordance to this, MFI wants to use and understand the effect of Information and communication technology (ICT) to expanding the frontier of formal financial services. In doing its business, MFI had a numbers of inputs, outputs and processes in its system. First input and output is, the micropayments service, where consumers pay for small items through their mobile phone, or through a value-carrying smart card.

It could be argued that ICT-enabled banking services were the application that propelled us into the “Information Economy”. Second input and output is, the E-Commerce—has its genesis in the banking sector. E-commerce has become so ubiquitous that, in some economies, cash is now almost superfluous. Cash is used for only the smallest transactions and even this is poised to be replaced by a micro payment. Third input and output is, the Mobile Computing: while the back-office MIS enables the MFP to monitor its loan portfolio,

this functionality is undermined if the data analyzed by the MIS is not up-to-date or contains errors.

With dispersed branch offices, paper-based transaction records and manual data entry, there can be a data delay of days and even weeks, and the possibility of introducing errors during the data entry process is high. A recent innovation that serves to overcome these issues is mobile computing systems—palmtop computers that loan officers take to the field so that financial transactions can be recorded directly into the MIS, without the need for intermediary data entry at the branch office.

The data entered in the palmtop computers is typically uploaded to the MIS at the end of the day, either directly in the branch office or via a remote communication link These mobile computing solutions also have significant implications with respect to data accuracy and integrity. Fourth input and output is, the Electronic data entry at field level, with on-the-spot, system-generated receipts for clients, significantly reduces data entry errors. Fifth input and output is, the credit cards and microcredit services.

Like microfinance methodologies, credit cards were introduced to reduce the high costs associated with small transactions lending. Other salient features of credit cards, which many microfinance clients would like their providers to duplicate, include on-demand borrowing, a re-draw facility, and repayment flexibility within predefined guidelines. EFTPOS functionality with third-party merchants and or Automatic Teller Machines (ATMs). With ATM solutions, deposited repayments and savings are processed “back at the office” and receipted later, a process that is unlikely to secure the confidence of clients.

In either solution, withdrawal of credit or savings is equally straightforward. Fifth input and output is, using Smart cards as part

of their “micro credit card” solution. Smart cards have an embedded computer chip that can store client and transaction data, as well as, process information. Smart cards function as electronic passbooks, thereby reducing reliance on printed receipts. Sixth input and output is internet banking, it provides clients with real-time information about their accounts, and the ability to transfer funds between their accounts.

It is an empowering tool because it gives bank clients the flexibility to manage their financial resources deliberately, at their own leisure, and without having to visit a bank office during openings hours. From the bank perspective, internet banking is an efficiency tool because it reduces the work of (human) tellers and therefore reduces labor costs. It is a relatively easy and inexpensive service to offer and the incremental cost of having 1. 000, 10. 000, or 100. 000 internet banking clients is negligible.

Seventh input and output is, the implementation of Microsoft’s Visual Basic and Access software development packages. Process of MFI is fully based on the help of information technology. Additionally, as microfinance is a growing industry with a large untapped market, rapid and unpredictable growth can be an important thing for MFIs to manage, particularly in competitive markets, to meet this challenge MFIs have turned to information technology-based solutions to optimize data collection. This refers to MFI initiatives that use some form of hand-held device to allow loan officers to do electronic documentation and/or evaluate redit applications in the field.

Loan officers of MFI travel from village to village, documenting clients, processing application, conducing meetings, collecting repayments, disbursing loans, resolving disputes and doing all of the basic tasks upon which the entire microfinance

industry relies. MFI has been unequivocally positive about the use of PDAs in the field has been Basix. Together with its technology partners, Basix has invested a lot of time and resources in developing IT solutions supporting its operation.

This includes an MIS solution (FAMIS_ Financial Accounting and Management Information System), with an integrated mobile solution for the field, using high-end hand-held devices from Oregon Scientific.

We have found regarding this report on the base of employees’ perception and customers’ perception. Employees’ Perception: Following Table 01 shows out of 20 employees of the Dhaka Bank 60% mentioned strong agreement towards the fact that their IS are supporting their activities and remaining 40% employees simply agrees to the same fact.

Conclusion

The Dhaka Bank has been CBIS from the very beginning when they started their journey that is in the year 1995. Information Technology (IT) Department or the IT Department is one of the most important departments in the Dhaka Bank. It has around 32 employees. The bank has invested around 2% of the total investment over the IT department. 60% employees mentioned strong agreement towards the fact that their IS are supporting their activities and 85% employees are very much satisfied with their current IS.

On the other hand, 35% customers mentioned strong agreement towards the fact that their IS are supporting their activities and 30% customers are very much satisfied with the current IS of the bank.