MIS - Standard Chartered Bank Pakistan

INFORMATION SYSTEM STUDY REPORT OF

STANDARD CHARTERED BANK FOR THE SUBJECT

MANAGEMENT INFORMATION SYSTEMS (HS-107)

GROUP MEMBERS

SR.# N AM E 1 2

R O L L N UMBER

ARSALAN ATA KHAN MUHAMMAD UMER

2009-CE-124 2009-CE-137

SUBMITTED TO MUZAMMIL AHMAD KHAN ASSISTANT PROFESSOR COMPUTER ENGINEERING DEPARTMENT

SIR SYED

COMPUTER ENGINEERING DEPARTMENT UNIVERSITY OF ENGINEERING AND TECHNOLOGY KARACHI

Standard Chartered Bank (Pakistan) Limited

Acknowledgment

First of all, we are thankful to Almighty ALLAH (The most Gracious and the most Powerful, the knower of seen and unseen), for giving us courage and power to learn and to apply our knowledge for the benefits of mankind.

We would like to express profound gratitude to our advisor, Mr. Muzammil Ahmed Khan and Mr. Muhammad Kashif Shaikh, for his invaluable support, encouragement, supervision and useful suggestions throughout this project work. His moral support and continuous guidance enabled us to complete our work successfully and patiently guided us in this project and never accepting less than our best efforts.

We would also like to show our gratitude to all the staff members of Standard Chartered bank of Pakistan especially Mr. Abdul Azeem Qureshi and Mr. Aamir Saleem who devoted us their precious time to accomplish this task.

At last but not the least, we would like to thank our family, for their consistent support and faith which enables us to complete this project.

Sir Syed University Of Engineering & Technology, Karachi.

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TABLE OF CONTENT O F H E A D I N G

PAGE NO

S . N O

T I T L E

1.

Introduction

4

2.

Organization Introduction

5

3.

Main Business Function of the Organization

8

4.

Information System in Standard Chartered Bank

10

5.

Other Departments in Standard Chartered Bank

11

6.

Main Business Function of IT Department

13

7.

Electronic Basic Banking System (EBBS)

16

8.

Electronic Card Processing System (ECAP)

17

9.

Networks in Standard Chartered Bank

18

10.

Data Flow Diagram of Main Function

20

11.

Suggestions for Improvement in the Organization

22

12.

Conclusion

23

13.

Gantt Chart of the Project

Appendices Minutes of Meeting Questionnaire


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Introduction Information is the basis for every decision taken in an organization. The efficiency of management depends upon the availability of regular and relevant information. Thus it is essential that an effective and efficient reporting system be developed as part of accounting system. The main object of management information is to obtain the required information about the operating results of an organization regularly in order to use them for future planning and control. The old techniques like intuition, rule of thumb, personal whim and prestige, etc. Are now considered useless in the process of decision taking. Modern management is constantly on look out for such quantitative and such information, which can help in analyzing the proposed alternative actions and choosing one as its decision. Thus, modern management functions are information-oriented more popularly known as

“management by information”. And the system through which information is communicated to the management is known as “management information system (MIS)” .


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Introduction of Standard Chartered Bank Introduction: Standard Chartered has a history of over 150 years in banking and operates in many of the world's fastest-growing markets with an extensive global network of over 1,600 branches (including subsidiaries, associates and joint ventures) in over 70 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. As one of the world's most international banks, Standard Chartered employs 70,000 people, representing over 125 nationalities, worldwide. This diversity lies at the heart of the Bank's values and supports the Bank's growth as the world increasingly becomes one market. With strong organic growth supported by strategic alliances and acquisitions and driven by its strengths in the balance and diversity of its business, products, geography and people, Standard Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East. Standard Chartered derives over 90 per cent of profits from Asia, Africa and the Middle East. Serving both Consumer and Wholesale Banking customers worldwide, the Bank combines deep local knowledge with global capability to offer a wide range of innovative products and services as well as award-winning solutions. Standard Chartered is also committed to all its stakeholders by living its values in its approach towards managing its people, exceeding expectations of its customers, making a difference in communities and working with regulators.


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History of Standard Chartered Bank: Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853.

The Chartered bank: The Chartered bank was founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. Chartered bank opened its first branches in Mumbai (Bombay), Kolkata and Shanghai in 1858, followed by Hong Kong and Singapore in 1859.

The Standard bank: The Standard bank was founded in the Cape Province of South Africa in 1862 by John Paterson. The bank commenced business in Port Elizabeth, in January 1863.

Standard Chartered Bank in Pakistan: Standard Chartered Bank (Pakistan) Limited is Pakistan's oldest and largest foreign bank with over 176 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. `The year 2006 marked the beginning of a major transformation for Standard Chartered’s operations in Pakistan. It was during this year that the Bank announced its acquisition of Union Bank, one of the best private sector banks in Pakistan.

The US$ 487 million, the largest ever transaction in Pakistan’s banking history, spearheaded the establishment of Standard Chartered Bank (Pakistan) Limited (SCBP), the first international bank in


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Pakistan to be locally incorporated. The acquisition effectively cemented our position as the largest th

and fasted growing international bank in Pakistan: Standard Chartered is now the 5

largest bank in

terms of revenue and operating profit. In early 2007, the combined bank had 115 branches across 22 cities in Pakistan. A year later, by mid 2008, the bank has 176 branches across 41 cities. Our geographic footprint growth has led the Bank in becoming a part of the social and economic fabric of the country, positioning us to deliver on our vision of “Being the best locally embedded international bank”. The bank now has over 176 branches across over 41 cities of Pakistan.


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Services Offered by Standard Chartered

Consumer Banking Standard Charted provides services for Mortgages Credit Cards Personal Loans Auto Loans Islamic Banking Wealth Management products.

In order to maximize customer convenience, convenience, they offer

24-hour Phone Banking eStatements


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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: Standard Chartered Saadiq's dedicated Islamic Banking team provides comprehensive international banking services and a wide range of Shariah compliant financial products that are based on Islamic values

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


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Information System in Standard Chartered

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 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 th

happened on 17 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 t o 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 gets improved, online banking emerged and lot of others benefits. Standard Chartered Online is an innovative Online Banking service that you can tailor to suit your precise banking needs. It gives you convenient, round-the-clock banking services ranging from dayto-day account transfer transactions to real-time valuable financial information. Now you can manage your finances anytime, anywhere.


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DESCRIPTION OF DEPARTMENTS

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.


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CREDIT AND 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: 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 center’s, 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 different 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 effectively. Some

software’s are cross functional helping different departments.


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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 is 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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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

SERVERS OF STANDARD CHARTED 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 different 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. 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.


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NETWORKS IN STANDARD CHARTED 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 different types of network configuration for different 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 different 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 different servers located at different 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 one to give backup link, If a wired is cut off 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.


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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 Chartered existing information technology system is fulfilling all of their need without any error, and the network terminologies they implemented is serving excellent in terms of quality and security. The weakness in their existing system is that they stores only the last 3 years of customer data into their local server to follow the STATE BANK OF PAKISTAN law. But in some cases they have to retrieve the old data from their Chennai, India server, which cost them money for downloading as well as uploading.

SUGGESTIONS & RECOMMENDATIONS: Standard Chartered bank should store all of the customer data into its local servers for faster access to the old data and to save the money they spent in order to download the archived data from the Chennai server.


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CONCLUSION

This report is complete implementation of our course study. After our visit to multinational organization, we came to know how these organization works in order to maintain their standard and market share in the industry. We also came to know the different industrial standards that an organization has to follow in order become agile. This report helped us in clearly understanding the complex business logics as well as the impact of short and long term strategies. The report also gives us practical exposure to some state of the art IT infrastructure like redundant networks etc and their impact on day to day business. The project helped us in developing interpersonal skills, awareness of work environment in organization and the role of Information system in organizations. organizations.


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QUESTIONNAIRE 1. Hierarchy of the Standard Chartered Bank? 2. What are the different departments currently working in Standard Chartered Bank & what are their role & activities? 3. Hierarchy of Different Departments? Departments? 4. Main Business function of Standard Chartered Bank (Banking, Loans, Stock markets,

ATM’S, Online Banking, Mobile Banking) 5. What is the Role of IT Department throughout the Organization? Organization? 6. How do you manage such a huge amount of data? 7. Is there any Centralized Database. Which SQL Server you are using? 8. When and where Batch Processing took place in Standard Chartered Bank? 9. What kind of networks and other communication terminologies you use to interconnect all of your branches worldwide. 10. Which security terminologies you implemented in order to secure your system? 11. How often do you backup you data. 12. Backup for Emergency? 13. Still how much work is done manually in Standard Chartered Bank? 14. Do you follow any SDLC? 15. What kind of Hardware Server’s you have to fulfill your needs.


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MIS - Standard Chartered Bank Pakistan

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