Executive Summary

Executive Summary

Banking sector of Bangladesh is playing an important role in the socio economic situation of

the country. There are large numbers of banks operating for many years in Bangladesh

successfully. Today, most of these banks are now automated. So now days to operate their

activities and operations efficiently and effectively, Banks are using latest technologically

improved and updated banking solution soft-wares or ERP (Enterprise Resource Planning)

system. ERP system also helps to provide effective and quick services to the bank’s customers.

ERP- three letters that represent, a system that is multiple in scope, tracks a range of activities

including finance, management, accounting, MIS and human resource systems. It is

integrated, when data is added in one area, information in all related areas and functions also

changes. An ERP system is modular in structure. The system provides industry specific

solutions that enhance standard systems by providing best practices for key business

processes. That’s why we took the opportunity to know about the ERP system of the “City

Bank Ltd.”. We had the opportunity to study into the procedures of Information Technology

Management at Dilkusha, Motijheel branch of City bank. Therefore, we will be describing in

this report about the ERP system of City bank specifically about their computing resources,

banking solution and processing systems, TPS and MIS activities, business processes, supply

chain management system, database management system, security and control. The

deliberation of this report is impounded in exploring and explaining ERP system of banks in

Bangladesh. So our report will be a combination of different aspects of the banking activities

and operations rely on information technology under general banking activities and a

comprehensive view on IT division’s ERP system usages.

Banking sector of Bangladesh is playing an important role in the socio economic situation of

the country. There are large numbers of banks operating for many years in Bangladesh

successfully. Today, most of these banks are now automated. So now days to operate their

activities and operations efficiently and effectively, Banks are using latest technologically

improved and updated banking solution soft-wares or ERP (Enterprise Resource Planning)

system. ERP system also helps to provide effective and quick services to the bank’s customers.

ERP- three letters that represent, a system that is multiple in scope, tracks a range of activities

including finance, management, accounting, MIS and human resource systems. It is

integrated, when data is added in one area, information in all related areas and functions also

changes. An ERP system is modular in structure. The system provides industry specific

solutions that enhance standard systems by providing best practices for key business

processes. That’s why we took the opportunity to know about the ERP system of the “City

Bank Ltd.”. We had the opportunity to study into the procedures of Information Technology

Management at Dilkusha, Motijheel branch of City bank. Therefore, we will be describing in

this report about the ERP system of City bank specifically about their computing resources,

banking solution and processing systems, TPS and MIS activities, business processes, supply

chain management system, database management system, security and control. The

deliberation of this report is impounded in exploring and explaining ERP system of banks in

Bangladesh. So our report will be a combination of different aspects of the banking activities

and operations rely on information technology under general banking activities and a

comprehensive view on IT division’s ERP system usages.

1. INTRODUCTION

1.1 Origin of the reportThis term paper on “Enterprise Information System of City Bank” is a partial requirement of our MIS305 course. The topic has been assigned and supervised by our respected course instructor ASM Ashif. He instructed us well enough how we can proceed to properly prepare the term paper.

1.2 Background of the studyOur project aim was to find what type of Information System is used by organizations. We collected information from City bank limited. There we have consulted with some IT department officials.

1.3 Objective of the studyThe objective of this study is to understand the type and structure of information system is currently being used by organizations in our country. As a business executive in future, we should have to gather experience beside our class work. We should not concern our lesson only in classroom but to implement it in practical life that will help us in our future life. A clear objective helps in preparation of well decorated report, in which other take the right type of decision. So, identifying objectives is very much important.

1.4 Scope

This research has covered City Bank limited. We have focused on the IT department of the bank and only brief overview.

1.5 Methodology

This report is mainly based on information collected from City bank official.

Firstly, we determine the information we need to complete the report. Then, we give City Bank officials a list of required information. They, then, provided us with the information they can give.

After that, we analyze the information and review some related literature. Finally, we arranged the information in a structured format.

1.6 Limitation This topic is not free from limitations. Below are some limitations we have faced:

1. All the needed information was not available.2. The topic is so vast, so find difficulty to consolidate all area of information.3. We have faced difficulty in understanding very technical terms.

2. COMPANY PROFILECity Bank is one of the oldest private commercial banks operating in Bangladesh which started its journey on 27th march 1983 through opening its first branch at B. B. Avenue branch in the capital Dhaka city. It was the visionary entrepreneurship of around 13 local businessmen who braved the immense uncertainties and risks with courage. The City Bank commenced its journey with only taka 3.4 crore worth of capital which is now respectable taka 330.77 crore as capital and reserve. The bank is among the very few local banks which do not follow the traditional, decentralized, geographically managed, branch based business or profit model. Instead the bank manages its business and operation vertically from the head office through 4 distinct business divisions namely-

1. Corporate and investment banking2. Retail banking3. SME banking4. Treasury and market risks

Under a real time online banking platform, these four business divisions are supported at the back by a robust service delivery or operations setup and a smart IT backbone. The bank currently has 89 online branches and 10 SME service centers and 1 SME Agro center spread across the length and breadth of the country that include a fully-fledged Islamic banking branch. It currently has 99 ATMs of its own and ATM sharing arrangement with a partner bank that has more than 550 ATMs in place. City Bank offers a very personalized and friendly customer service with a customized service excellence model called CRP to ensure the happy customers through setting benchmarks for the bank’s employee’s attitude, behavior, readiness level, accuracy and timelines of service quality. City Bank is the first bank in Bangladesh to have issued Dual Currency Card. The bank is a principal member of VISA international and has launched American Express Credit Card and American Express Gold Credit Card in November 2009.

2.1 VISIONThe financial supermarket with a winning culture offering enjoyable experiences

2.2 MISSION Offer wide array of products and services that differentiate and excite all customer

segments Be the “Employer of choice” by offering an environment where people excel and

leaders are created Continuously challenge processes and platforms to enhance effectiveness and

efficiency Promote innovation and automation with a view to guaranteeing and enhancing

excellence in service Ensure respect for community, good governance and compliance in everything we

do

3. ORGRANOGRAM OR MANAGEMENT COMMITTEE

4. MANAGEMENT VALUES Result driven, accountable and transparent Courageous and respectful Engaged and inspired Focused on customer delight

K Mahmood Sattar (Managing Director & Chief

Executive Officer)

Sohail R. K. Hussain(Additional Managing

Director & Chief Business Officer)

Sheikh Mohammad Maroof

(Head of Wholesale Banking)

Kazi Azizur Rahman(Head of Information

Technolog)

Faruq Moinuddin(Additional Managing

Director & Chief Risk Officer)

Md. Abdul Wadud(Head of Credit Risk

Management)

Nasim Ahmed(Head of Internal

Control & Compliance)

Zabed Amin(Head of Retail

Banking)

Mashrur Arefin(Deputy Managing

Director, Chief Operations Officer &

CCO)

B Choudhury(Head of

SME Banking)

Md. Abdus Salam Bhuiyan

(Head of Human Resources)

5. ORGANIZATION COMPUTING RESOURCES5.1 Software ResourcesFollowing soft-wares are used for the functioning of city bank information system and organization:Application Software

Microsoft Open Office Org. 10 NOD32 Anti- Virus Adobe reader Finacle Banking Solution Software Oracle 10g for DBMS Microsoft IIS for application Crystal report 11 for reporting tool FIU (Financial Intelligence Unit) Reporting System

The objective of FIU is to combat against the financial crime and retrieve assets and money kept in overseas by embedded suspects. It is recommended by the Bangladesh Bank.

VNC Viewer 4.0It is remote control software that allows users to view and fully interact with one computer as the VNC server on another computer anywhere on the internet; even two computers don’t have to be the same. The function of this software is depicted through a diagram below:

Figure: VNC viewer function BASEL ΙΙ

Using this software requirement against loan is determined and it is also recommended by the Bangladesh Bank.

ATM software OSPF (Open Shortest Path First )

It is a routing protocol used to determine the correct route for packets within IP networks.

System Software Operating system as Windows XP and Linux Sun Solaris operating system Windows 2003 server for mainframes

5.2 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

5.3 Networking Devices and ServersFollowing networking devices are required for the functionality of IT system:

Dell Server BO (Business Objective) Server Juniper switch Juniper firewall RMAN online backup system Sun Firework X-5140 Server with quad core RAMS ADS (Active Directory System); number of ADS is 2 CAS Hub (Client access Server); number of CAS Hub is 1 Mail server or Exchange Server; number of Mail Server is 2 OTRS (Open Ticket Reservation System) ATM server EDGE server (Microsoft server) Antivirus server

Two antivirus servers have Kaspersky and SOPHOS antivirus software.

The connectivity infrastructure is based on blending of Fiber, Radio and VSAT links to ensure high availability. City Bank Ltd. has contracts with the following ISP’s:

Connection type ISP OrganizationsRadio link ALAP Communications, Brac netVSAT Square Informatix Ltd.Fiber Optic Dhaka Com., Telnet BD, Banglaphone, Metronet

A sample diagram is given below for any branch banking in City Bank Limited:

Figure: Network of computing resources used by City bank

6. ENTERPRISE RESOURCE PLANNING SYSTEM

6.1 FINACLE BANKING SOLUTIONCity bank uses FINACLE core banking solution as their ERP system. FINACLE core banking solution is a comprehensive, integrated yet modular business solution that effectively addresses the strategic and day to day challenges faced by the bank. The solution has an integrated CRM module enabling banks to offer a rich and differentiated value proposition to customer. The layered Service Oriented Architecture (SOA), STP capabilities, web enabled technology and 24X7 operations ensure multi-channel, multi-country and multi-currency implementations. Benefits of FINACLES are-

Differential product spread Agile operations Robust cross-sell framework Increased operational efficiencies and productivity

Bank’s Opportunity / Challenge Finacle Direct Banking Advantage

Penetrate new geographies and expand network in existing markets

High costs of setting up Greenfield operations

Pre-configured parameters and process maps that can be tweaked to include local flavors, for rapid branchless roll-out• Seamless integration leading to

Option to outsource operational logistics, and leverage right-skilled resources skilled in Finacle functions and processes

Need for innovative products and Services supported by multi-channel

self-service capabilities

High costs of customer acquisition and servicing

Multi-channel self-service fulfillment, with online sales enablers to drive customer e-acquisition

Reduced service distribution and transaction costs; passed on to

customers

Figure: FINACLE banking solution: Functional Architecture

Figure: FINACLE banking solution: Technical Architecture

Figure: City Bank’s Enterprise Resource Planning System Architecture

Intranet User

Customer Third Party

VT220 IE6Voice Phone

PDA/ Mobil IE6

ATM/Switch

RBIRTGS

V220Adapter

IVRAdapter

WAP/SMSAdapter

ISO8583Adapter

RBIRTGSAdapter

XMLAdapter

Interchange Engine

WorkflowEngine

WorkflowEngine

ProcessEngine

ProcessEngine

ProcessEngine

SecurityEngine

Time-eventEngine

RuleEngine

Database Engine

Oracle Sybase SQL SERVER

MySQL DB2

ExternalFirewall

InternalFirewall

MQ Series

MSMQ

DMZ

7. 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 which is stored in an information system. Also transaction processing system or transaction processing monitor monitors the transaction programs which are special type of programs. The advantage of transaction processing program is that it manages data or information that must be left in a consistent state.

7.1 TPS in City Bank

The transaction processing system of City Bank is working efficiently and effectively which offers the enterprise or management the means to process transactions rapidly to ensure the smooth flow of data and progression of process throughout the organization.

7.2 Payroll TPS

The payroll TPS of City bank is designed and created to gain and collect information and record of the employees and then calculate his or her annual earnings. It collect the information about the employees from the employee’s respective departments and from general ledger and send it to the payroll TPS from where it links that information with the previous record and then prepares a report which is then forwarded to the management. Management takes the notice the “LN” record of the employee’s efficiency to work and may declare extra bonus added or other form of incentives. This report is checked and approved by the branch manager after which check is issued to the employees. When that check is cashed, the record is updated in the general ledger as well as the master payroll (HUB).

Employee Data

General Ledger

Management Reports

Check Issued To Employee

General Ledger

Payroll TPS Check Pass by Manager

Payroll Master File (HUB)

7.3 Employees’ RecordAll employees are supposed to login to the system of bank when they enter into 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 employees hour spent in the bank. Moreover, the bank has their own setup which makes records of all the transactions made by an employee. Thus help management to monitor the working efficiencies and effectiveness of employees.

7.4 Customer IdentificationCity bank has their own information management software which is connected to Oracle 10 G database. So if any new client wants to open an account the system will automatically send a request to the Oracle 10 G database to check and verify the customer ID number.

7.5 Online ComplainsCity bank allows the customer the option of making complains. The customer submit the online complain which is then processed Customer Service TPS which is linked by management and after the problem identification it is send to the concerned department.

7.6 Advice Customer

Customer Queries

Customer Service TPS

Identify Problem

Send to Concerned

Department

Employee Job Login

Biometric Device & LN

Employee Job Logout

HUB

Info. Management SoftwareHUB

Input

Management CustomerIdentification

All the records of the customers are stored in the main server (HUB) of the City bank, so incase if someone account balance is getting near to zero the system automatically alert the management about that. The managers take manual action and send him the advice to check the account balance.

7.7 ATM CardPurpose of the ATM card is to make the process of making withdraw of cash easy and faster. One has to input or provide bio data, income summary, company name where he or she is working currently and NIC to apply for an ATM card. NIC no. and bio data send to the management who then linked it directly to the FINACLE ERP system and if the information is correct then it is forwarded to the customer service center. Later customer service center provide the ATM card to the customer which is earlier issued by the bank management.

8. MANAGEMENT INFORMATION SYSTEM

ApplicantNew

Account Opened

Customer Service TPS

Account Due

Information Management Software

Identification

HUBATM Issued

Advice

A/C AlertCustomer Service TPS

Management

HUB

MIS reports and summarizes the organization’s basic operations and these reports come from the basic transition processing systems. In case of City bank 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 bank is working properly or not. If there are some flaws then they take control measures to fix those flaws.

9. SUPPLY CHAIN MANAGEMENT SYSTEM

Transaction Processing System Management Information System

Payroll Master File

Customer Queries Master File

CI Info. Master File

Employee Info Master File

Payroll TPS

CustomerIdentification

TPS

Customer Service TPS

Employee Record TPS

MIS Files

Customer Data

Customer Complains Data

Employee’s Data

Payroll Data of Employee

Customer Master File

Advice TPSAdvice Data

Customer Master File

ATM Card TPS Customer Account

Data

MIS Reports

Manager

9.1 Working Capital Chain

PROCUREMENT SALES

10. DATABASE MANAGEMENT SYSTEM

Transaction Processing and

SettlementFinancing Information

Risk Mitigationand Credit

Enhancement

Supply Procure-ment Delivery Produc-

tion Sales Trans-port Distribut-ion Vending

EndUsers

Settlement1.Documentary Collections2.Import LCs3.Standby LCs

Financing1.Open Accounts2.Supplier Finance3.Commodity Finance

Information1.Electronic Delivery

Financing1. Inventory Finance2.CommodityFinance

Settlement1. DocumentaryCollections 2. Export LCs Financing1. Receivables Finance2. Import Finance3. Export Finance/ Discounting Bills4. Commodity Finance

Information4. Electronic Delivery

Settlement1. DocumentaryCollections

Financing1. ReceivablesFinance2. DistributorFinance

Financing1.Distributor Finance

Risk Mitigation1. Confirmations

City bank Uses Oracle Database 10g as their primary DBMS. Oracle Database 10g enables grid computing which is simply a pool of computers that provides needed resources for applications on an as-needed basis. It’s a Hybrid Object-Relational Database. Oracle Database 10g further reduces the time, cost, and complexity of database management through the introduction of self-managing features such as the Automated Database Diagnostic Monitor, Automated Shared Memory Tuning, Automated Storage Management, and Automated Disk Based Backup and Recovery. Below is some key feature of the DBMS:

1. Data Application Development Features: Oracle 10g allows application development. Programmers can use SQL to create database applications. Moreover the DBMS also has a procedure language extension to SQL (PL/SQL). It also permits the use of object oriented programing and 3G programming languages (JAVA, C, C++ etc.).

2. Database Connection Features: The database connection is responsible for supporting all communications between an application and the data it uses. Database users connect to the database by establishing a network connection using Oracle Net. Oracle’s Connection Manager reduces the number of Oracle Net client network connections to the database through the use of concentrators, which provide connection multiplexing to implement multiple connections over a single network connection.

Figure: Concentrators with Connection Managers for a large number of users

Database Server Server

ConnectionManger

Client

3. Distrusted Database Features: Data within an organization is often spread among multiple databases for reasons of both capacity and organizational responsibility. Distributed queries can retrieve data from multiple databases. Distributed transactions can insert, update, or delete data on distributed databases. Background recovery processes can ensure database consistency in the event of system interruption during distributed transactions.

4. Data Warehousing and Business Intelligence: Oracle 10g also has data warehousing feature. The DBMS has stored bitmap indexes to provide a fast way of selecting and retrieving certain types of data. Oracle also has optimized star query by introducing parallel bitmap star join, which uses bitmap indexes on the foreign keys to the dimension tables to speed star joins involving a large number of dimension tables. It has ANSI standard OLAP SQL analytic functions for windowing, statistics, CUBE and ROLLUP, and much more. Data mining applications are typically custom built using Oracle’s JDeveloper with DM4J.

5. Backup and Recovery: Oracle 10g database’s integrated recovery platform is Recovery Manager (RMAN). Typical backups include complete database backups (the most common type), table space backups, data file backups, control file backups, and archived redo log backups. RMAN can perform incremental backups which back up only the blocks modified since the last backup of a data file, table space, or database; thus, they’re smaller and faster than complete backups. RMAN can also perform point-in-time recovery, which allows the recovery of data until just prior to an undesirable event (such as the mistaken dropping of a table).

6. Database Availability: Oracle introduced partitioning as an option to provide a higher degree of manageability and availability, which can insure only legitimate users, can view specific data.

11. SAMPLE MIS REPORT

Figure: A sample report generated by Business Object Crystal Report Server.

12. SECURITY POLICY

City Bank is very strict about digital asset’s protection. For protecting the servers from external threats it uses ISG-1000 firewall in the head office and SSG-320M firewall in the branches with use of routers and switch at the end. Moreover, they use proxy server for network control of unauthorized access. To protect the physical location of server mainframe, City Bank uses Punch card door access and CCTV camera. For virus protection, it uses NOD-32 Antivirus.

Figure: Corporate Server protection by using Firewall and Router.

Oracle Technologies Finacle Core Banking System

Yes No

Database Vault

Audit Vault

Advanced Security

Database Vault provides highly privileged user access controls, separation of duty & ability to control who, when, where and how FINACLE data can be accessed. Audit Vault turns audit data into a key security resource for the Banks, providing consolidation, reporting, proactive alerting and protection of audit data. Thus provides advanced Security with Transparent Data Encryption (TDE), a simple method to encrypt sensitive data.

13. NETWORKING SYSTEM

Figure: City Bank Network Diagram.

14. CONCLUSION

A management information system is a system or process that provides the information necessary to manage an organization effectively. MIS and the information it generates are generally considered essential components of prudent and reasonable business decisions.

The reports start with the background history of the bank such as when it establish in Bangladesh, 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 reports discuss 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.

15. RECOMENDATION

The bank is using the IS and ERP system 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 it ERP and IS up-to-date for providing best services to their customers and attracting more customers and increasing its productivity.

The security of these systems should be made. Credit cards system should be more improved providing the unique facilities to their

customers which the other bank has not yet introduce.