The Chartered Bank was founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. The bank opened in Mumbai (Bombay), Kolkata and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. The traditional trade was in cotton from Mumbai, indigo and tea from Kolkata, rice from Burma, sugar from Java, tobacco from Sumatra, hemp from Manila and silk from Yokohama.
The bank played a major role in the development of trade with the East following the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871. In 1957 Chartered Bank bought the Eastern Bank, together with the Ionian Bank’s Cyprus Branches and established a presence in the Gulf.
The Standard BankThe Standard Bank was founded in the Cape Province of South Africa in 1862 by John Paterson, and started business in Port Elizabeth in the following year. The bank was prominent in financing the development of the diamond fields of Kimberley from 1867. It later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. The bank expanded in Southern, Central and Eastern Africa and had 600 offices by 1953. In 1965, it merged with the Bank of West Africa, expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.
In 1987 Standard Chartered Bank sold its stake in the Standard Bank, which now operates as a separate entity.
2. INFORMATION SYSTEM USED IN STANDARD CHARTERED BANK, PAKISTAN
One of the information systems used in Standard Chartered Bank is Transaction Processing System (TPS). A Transaction Processing System 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 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.
Advantages of TPSThe transaction processing system can simultaneously coordinate thousands, even millions, of purchases, debit consumers’ bank accounts, hold each consumer’s private banking and address information, and ship out or process the order to the consumer. This system is helpful for any business that wants to make selling goods and services easier for consumers Another advantage is that usually transaction processing is really fast, it takes up usually a few seconds and it also makes the process of booking fairer as files are processed in order in which they had been queued
TPS in Standard Chartered Bank, Pakistan.Effective transaction processing system in Standard Chartered Bank that offer enterprise the means to rapidly process transactions to ensure the smooth flow of data and the progression of processes throughout the enterprise. The transaction processing system can simultaneously coordinate thousands, even millions, of purchases, debit consumers’ bank accounts, hold each consumer’s private banking and address information, and ship out or process the order to the consumer. This system is helpful for any business that wants to make selling goods and services easier for consumers
3. TRANSACTION PROCESSING SYSTEM IN STANDARD CHARTERED BANK, PAKISTAN.
4.1. Payroll TPS
In Standard Chartered payroll, TPS is designed to get information and record of the employ and then to calculate his or her annual earning. It gets 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.
Management takes notice of the 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).
General LedgerLPayroll TPSPayroll Master File (HUB)Management ReportsCheck Passes by ManagerCheck Issued to EmployeeGeneral LedgerLEmployee Data
General LedgerLPayroll TPSPayroll Master File (HUB)Management ReportsCheck Passes by ManagerCheck Issued to EmployeeGeneral LedgerL
4.2. Customer Identification:
In Standard Chartered bank there is their own information management named software “Virses” is working which is connected to NADRA. NADRA stands for National Database and Registration Authority of Pakistan. It is basicallythe same as Jabatan Pendaftaran Negara in Malaysia. 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 or she is using the original ID card or not.
Input(ID #)VirsesManagementHUBNADRA(customer identification)Input(ID #)VirsesManagementHUBNADRA(customer identification)
4.3. 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 helps the management to monitor the working efficiency of an employee.
Employee Job LoginBiometric Device& LNHUBEmployee Job LogoutEmployee Job LoginBiometric Device& LNHUBEmployee Job Logout
4.4. 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. 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.
4.5. Online Complains
Standard Chartered bank allows the customer the option of online complains. 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.
Customer QueriesCustomer Service TPSIdentify ProblemSend to concerned Dept.Customer QueriesCustomer Service TPSIdentify ProblemSend to concerned Dept.
As all of the records 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 will automatically alert the management about that. Then manager take manual action and send the advice (a letter, mail or phone call) to check the account balance to their customers.
Customer Service TPSCustomer Service TPSAccountAlertManagementHUBAdvices Send to CustomerAccountAlertManagementHUBAdvices Send to Customer
4.7. 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 is send to the “virses”.Output: new account opened in the bank.
ApplicantIdentificationVirsesA/C Dept.Customer Service TPSHUBNew A/C OpenedApplicantIdentificationVirsesA/C Dept.Customer Service TPSHUBNew A/C Opened
4.8. 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.
CustomerCustomer Service TPSHUBA/C DeptFund Trnsfr to Concerned BranchCustomerCustomer Service TPSHUBA/C DeptFund Trnsfr to Concerned Branch
4.9. 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.
ApplicantIdentificationVirsesA/C Dept.Customer Service TPSHUBNew A/C OpenedATM IssuedApplicantIdentificationVirsesA/C Dept.Customer Service TPSHUBNew A/C OpenedATM Issued
4. RELATIONSHIP OF MANAGEMENT INFORMATION SYSTEM (MIS) WITH TRANSACTION PROCESSING SYSTEM (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. If there are some flaws then they take control measures to fix those flaws.
In conclusion, Management Information System (MIS) is a system or processthat provides the information necessary to manage an organization effectively. MIS and the information it generates are generally considered essential components of practical and reasonable business decisions.
This report discussed all the activities that the Management Information System performs in Standard Chartered Bank, Pakistan. The report starts with the background history of the bank such as when it establish. It explains how the transactions are made by the bank, using TPS such as account opening, new allowances, 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 discussed the relationship between the processes of TPS used in the bank with the MIS, enabling the bank to provide the quality and satisfactory services to their customers.