2. Banking Technology November 2005M.V.Sivakumaran
Agenda
• What is MIS?
• Why MIS in banks?
• MIS procedure in banks
• Decision Support Systems
• DSS Vs MIS
• Executive Information System
3. Banking Technology November 2005M.V.Sivakumaran
Management Information System
Management Information System is an organized
assembly of resources and procedures required to
collect, process, and distribute data for use in
decision making.
MIS is an information system that integrates data
from all the departments it serves and provides
operations and management with the information
they require.
4. Banking Technology November 2005M.V.Sivakumaran
Why MIS in Banks?
Banks require MIS
• To have better control over the business
• To know the performance of the branch vis-à-vis the
budgetary goals
• To enable the apex office to furnish certain information
to regulatory authorities as per the statues
• To make the management decisions whenever there
are changes in policies of Government
• To monitor Capital Adequacy Ratio
• To have effective Asset-Liability and Risk Management
5. Banking Technology November 2005M.V.Sivakumaran
Why MIS in Banks?
A bank’s MIS should be designed to achieve the following
goals:
• Enhance communication among employees
• Deliver complex material through the institution
• Provide an objective system for recording and
aggregating information
• Reduce expenses related to labour-intensive manual
activities
• Support the organization’s strategic goals and direction
6. Banking Technology November 2005M.V.Sivakumaran
Why MIS in Banks?
MIS should be used to recognize, monitor, measure, limit and
manage risks
Risk management involves four main elements
• Policies or practices
• Operational processes
• Staff and management
• Feedback services
7. Banking Technology November 2005M.V.Sivakumaran
MIS Framework
Strategic
Planning
& Control
Decision Making for
Management Control
Operation Planning and Control
Transaction Processing Enquiry Response
8. Banking Technology November 2005M.V.Sivakumaran
Effectiveness of MIS
MIS should have the following five elements for it to be
effectively utilized in the organization
• Timeliness
• Accuracy
• Consistency
• Completeness
• Relevance
The usefulness of MIS is hindered whenever one or more of
these elements is compromised.
9. Banking Technology November 2005M.V.Sivakumaran
MIS-Management’s Responsibilities
Management needs to ensure that MIS systems are developed
according to a sound methodology that encompasses the
following phases:
• Appropriate analysis of system alternatives, approval
points as the system is developed or acquired, and task
organization
• Program development and negotiation of contracts with
equipment and software vendors
• Development of user instructions, trading and testing of
the systems
• Installation and maintenance of the system
10. Banking Technology November 2005M.V.Sivakumaran
MIS procedure in Banks
Reports to be submitted to the Head Office by the branches
Interval Reports to be submitted
Weekly General Ledger Balances
Monthly Performance report
Maturity wise and interest rates wise
statements of Assets and Liabilities
NPA positions
Yearly Statutory Audit returns on advances
The Management Information Department at Head
Offices who receives the data, process into information and
furnish to the user departments on requisition
11. Banking Technology November 2005M.V.Sivakumaran
Decision Support Systems
DSS refers to an interactive computerized system that gathers
and presents data from a wide range of sources, typically for
business purposes. DSS applications are systems and
subsystems that help people make decisions based on data
that is culled from a wide range of sources.
A decision support system (DSS) is a computer program
application that analyzes business data and presents it so that
users can make business decisions more easily. It is an
"informational application" (to distinguish it from an "operational
application" that collects the data in the course of normal
business operation).
12. Banking Technology November 2005M.V.Sivakumaran
DSS Vs MIS
DSS MIS
Offers integrated tools, data,
models and language users
Offers structured information to
end users
System analysis dimension
focuses on identifying the tools
required for decision process
Focus is on identifying
information requirements
It is an iterative process by
design
The system is based on
“Frozen” requirements
13. Banking Technology November 2005M.V.Sivakumaran
Decision Support Systems
There are two kinds of DSS- Personal DSS and Group DSS
Personal DSS Group DSS
Individual Knowledge worker
uses in daily work
Promote brainstorming and
group decision making
Raw data entered into a
program either by user or
drawn from other sources
Located in conference room or
on networked computers
Tax preparation software is an
example
Example-weigh votes to
overcome impasses
14. Banking Technology November 2005M.V.Sivakumaran
DSS-Components and Interfaces
Transaction
Processing
systems
Knowledge
Management
systems
Management
Information
Systems
User Population
DSS
Database
Mode Base-
Statistical Model
Forecasting Model
Planning Models
Operational Model
DSS Software
User Interface
15. Banking Technology November 2005M.V.Sivakumaran
Decision Support Systems…
Four core capabilities of DSS
Representations- Conceptualise information required for
decision-making in the form of graphs, charts, reports, symbols
etc
Operations- Manipulate data logically and/or mathematically
Memory aids- Offer capabilities to update and refresh
memory by way of databases, data views, libraries, links etc
Control aids- Allow user to control functions and activities of
DSS
16. Banking Technology November 2005M.V.Sivakumaran
Executive Information Systems
Executive Information System is a visual reporting system
that provides management with real-time updates on
critical elements of the company-wide data in a
geographical, easy-to-read format.
Gives quick access to key business measures, allowing
you to monitor your operations and increase the speed
and accuracy of decision-making process.
17. Banking Technology November 2005M.V.Sivakumaran
Features of EIS
• Drill-down of information
• Exception reporting
• On-line access to external information utilities
• Graphical user interfaces
• Graphical data display
• Electronic mail
• Text, video and audio data provision
18. Banking Technology November 2005M.V.Sivakumaran
Benefits of EIS
• Flexibility
• Ability to analyse, compare and highlight trends
• Easy use of graphics to look at more data in less
time
• Drilling down and highlighting trends
• Monitor and measure performance more
successfully in different areas of responsibilities
