A Study on Banking Information System.

Automated Banking Information System
Automated Banking
Information System
A Study on Dhaka Bank

Automated Banking
Information System
A Study on Dhaka Bank
Institute of Information Technology,
University of Dhaka
Date of Submission
04 May 2015
Submitted to
MD. Iftekharul Amin
Assistant Professor
Institute of Business Administration
University of Dhaka
Submitted by
Md. Rakib Hossain (BSSE 0516)
A. H. M. Azimul Haque (BSSE 0519)
Rashedul Alam (BSSE 0529)
Mahbub Islam (BSSE 0510)
Group-5

Letter of transmittal
To
MD. Iftekharul Amin
Assistant Professor
Institute of Business Administration
University of Dhaka
Subject: A Study on Automated Banking Information System at Dhaka Bank
Dear Sir,
We are very pleased to submit the report on ―A Study on Automated Banking Information
System at Dhaka Bank‖ You asked us to conduct this study with in 30 th
April , 2015. We are
very delighted to inform you that, we have completed the report on .we enjoyed preparing this
assignment and it helped us to gain deep knowledge about the practical communication process.
Thank you for providing us the opportunity to participate in this topic. We are also very grateful
for your kind help and advice. We are really obliged to you for giving us the scope to prepare
this Report under you. Besides, our all team members have worked very hard while preparing
this report.
If any confusion arises or further explanation is needed, we shall be available to explain the
matter to you as and when required despite having limitations. Your benign and authoritative
advice will encourage us to conduct further flawless research in future.
.
Sincerely,
Md Rakib Hossain
On behalf of ―Group Five‖
BSSE 5th
Batch
Institute of Information Technology
University of Dhaka.

Acknowledgement
First of all we would like to thank Almighty whose gracefulness let us complete this report.
Certainly, we should thank those kind ones whose help & kind support enable us to complete this
report.
Especially we are indebted to my Course teacher Assistant Professor MD. Iftekharul Amin who
helped us for both forming and editing this work.
During this task we worked really hard. Our all team members shared their knowledge and
experience which helped greatly to recover different obstacles during this study.
We would also like to thank Dhaka Bank LTD executive and corporate officer for providing
necessary information about the company and co-operating with us

Table of Content
CHAPTER ONE........................................................................................................................................................8
1. INTRODUCTION ..........................................................................................................................................................8
1.1Background......................................................................................................................................................8
1.2 Origin of the Report ........................................................................................................................................9
1.3Objectives of the study.....................................................................................................................................9
1.3.1 Board Objectives ....................................................................................................................................................... 9
1.3.2 Specific Objectives..................................................................................................................................................... 9
1.4 Scope of the study.........................................................................................................................................10
1.4.1 Geographical Scope................................................................................................................................................. 10
1.4.2 Subject Scope .......................................................................................................................................................... 10
1.4.3 Time Scope .............................................................................................................................................................. 10
1.5 Limitation of the Study..................................................................................................................................10
1.5.1 Lack of Information or Data:.................................................................................................................................... 10
1.5.2 Time Constraint:...................................................................................................................................................... 11
1.5.3 Secrecy of Information:........................................................................................................................................... 11
1.5.4 Comparison Status: ................................................................................................................................................. 11
1.5.5 Lack of Experience:.................................................................................................................................................. 11
CHAPTER TWO.....................................................................................................................................................12
2. METHODOLOGY OF THE STUDY....................................................................................................................................12
2.1 Data Collection Process.................................................................................................................................12
2.1.1 Primary Source ........................................................................................................................................................ 12
2.1.2 Secondary Source.................................................................................................................................................... 12
2.2 Questionnaires ..............................................................................................................................................13
2.3 Study Areas ...................................................................................................................................................13
CHAPTER THREE...................................................................................................................................................14
3. INFORMATION SYSTEMS IN BANKING INDUSTRY ................................................................................................14
3.1 Information Needs in Banks..........................................................................................................................14
3.1.1 Basic or Level 1........................................................................................................................................................ 14
3.1.2 Advanced or Level 2 ................................................................................................................................................ 14
3.2 Use and Benefits of Information Systems in the Banking Industry ...............................................................15
3.3 Nature of Information systems currently used by banks ..............................................................................15
3.4 Evaluation of Information Systems ...............................................................................................................16
3.4 Security..........................................................................................................................................................16
3.5 Cloud Computing...........................................................................................................................................16
CHAPTER FOUR....................................................................................................................................................18
4. OVERVIEW OF DHAKA BANK LIMITED (DBL) ........................................................................................................18
4.1 Vision, Mission and Values............................................................................................................................19
4.1.1 Vision....................................................................................................................................................................... 19
4.1.2 Mission .................................................................................................................................................................... 19
4.1.3 Corporate Values..................................................................................................................................................... 19
4.2 Corporate Information ..................................................................................................................................20
4.3 SWOT Analysis of Dhaka Bank Limited .........................................................................................................20

4.3.1 STRENGTH ............................................................................................................................................................... 20
4.3.2 WEAKNESSES........................................................................................................................................................... 21
4.3.3 OPPORTUNITIES ...................................................................................................................................................... 21
4.3.4 THREATS.................................................................................................................................................................. 21
CHAPTER FIVE......................................................................................................................................................22
5.PRESENT MANAGEMENT AND BANKING INFORMATION SYSTEM AT DHAKA BANK...................................................................22
5.1 Why Dhaka bank Use UBS computerized accounting system for their Banking Information System?.........22
5.2 What are the problems Dhaka bank is facing for maintaining this UBS computerized accounting system?23
CHAPTER SIX........................................................................................................................................................25
6. FUTURE INFORMATION SYSTEM THAT WILL BE USED AT DHAKA BANK .................................................................................25
6.2 Reason for Using FLEXCUBE as Core Banking System...................................................................................26
6.3 Bank Currently Using FLEXCUBE as their core banking system.....................................................................27
6.3.1 Citi-Bank .................................................................................................................................................................. 27
6.3.2 Natixis...................................................................................................................................................................... 27
6.3.2 Dutch Bangla Bank- ................................................................................................................................................. 27
6.4 Reason for Adopting New Technology..........................................................................................................27
CHAPTER SEVEN...................................................................................................................................................29
7. OTHER IT RELATED BANKING SERVICES PROVIDED BY DHAKA BANK LIMITED........................................................................29
7.1 E-Statement ..................................................................................................................................................29
7.2 Remittance Distribution ................................................................................................................................29
7.3 Green Banking Activities ...............................................................................................................................29
7.4 IP Phone in Dhaka Bank ................................................................................................................................30
7.5 Electronic Fund Transfer (EFT) ......................................................................................................................30
7.6 Online Utilities Bill Payment..........................................................................................................................30
7.7 MRP and MRV Free Collection ......................................................................................................................30
CHAPTER EIGHT ...................................................................................................................................................32
8. FINDINGS OF OUR STUDY...........................................................................................................................................32
CHAPTER NINE.....................................................................................................................................................33
9. CONCLUSION AND RECOMMENDATIONS........................................................................................................................33
9.1 Conclusion.....................................................................................................................................................33
9.2 Recommendations ........................................................................................................................................33
BIBLIOGRAPHY.....................................................................................................................................................34
APPENDIX...................................................................................................................................................................35
Questionnaires....................................................................................................................................................35

Automated Banking Information System vii
Executive summary
Information Technology is the driving force for any country to be prospering now-a-days.
Bangladesh has a great opportunity to do well in this sector. Basically, most of the giant
organization of this country is dependent upon the technology from abroad; especially any
banking or other software is imported rather developed locally. Although, there are lots of
software farms and companies are doing well in Bangladesh, they are not getting focused. This
report denotes that, there should be a parameter to evaluate IT farms and software companies.
Thus they should get a label to be recognized. This sector is a potential sector for future software
engineers of Bangladesh. So it is observed that new and emerging technology also should be
adopted in this field. As clients require the best and high quality product from this respective,
they should be more careful about their professionalism. This study provides information about
the increasing demand of software professionals and their professionalism. In addition, we shall
also recommend a set of activities to develop this sector.

Automated Banking Information System 8
Chapter One
1. Introduction
For over a decade, the rapid advancement in information and communication technology has
significantly affected the banking industry. Banks and other financial institutions have improved
their services as financial intermediary through adopting various Information Technologies.
Technology has become a tool that facilitates banks' organizational structures, business
strategies, customer services and related functions. The recent "Information Technology (IT)
revolution" has exerted far-reaching impact on economics, in general, and the financial service
industry, in particular. Within the financial service industry, the banking sector was one of the
first to embrace rapid globalization and benefit significantly from IT development. The
technological revolution in banking started in the 1950s, with the installation of the first
automated bookkeeping machines at banks. This was well before the other industries became IT
savvy. The first Automated Teller Machine (ATM) is reported to have been introduced in the
USA in 1968 with only a cash dispenser. Automation in banking have become widespread over
the past few decades as banks quickly realized that much of their labor intensive information-
handling processes could be automated with the use of computers.
1.1Background
The world witnesses an information and technology revolution. This revolution has touched
every aspect of people‘s life including banking. Technology has introduced new ways of
delivering banking services and products to the customers, such as ATMs, and internet banking
(IB). Hence banks have found themselves at the forefront of technology adoption for the past few
years. These changes and developments in the banking industry have impacts on service quality,
future of the banking activities, and consequently its continually competitive ability in the market
since going along with technology is one of the most important factors of economic
organization‘s success in general and banks in particular. This motivates banks to spend more on
technology and information to achieve maximum returns and attract large number of clients.
To continue meeting these goals, the authority of Dhaka bank has made some significant changes
to their automated banking system and IT functions in 2013. (About Us, 2003)

1.2 Origin of the Report
As per our course tutor Mr. Md. Iftekharul Amin instructed us to submit a term paper as part of
the course evaluation, we write the paper. By writing the report we have learnt how to
communicate with people, how to collect data and analyze them. We also have learnt writing
report and presenting them. So we are very thankful to our course tutor for giving us the
opportunity.
1.3Objectives of the study
1.3.1 Board Objectives
 The main objective of the study is to investigate and analyze how the authority of Dhaka
bank, Gulshan branch maintains a secure Internet and Automated Banking Information
System.
1.3.2 Specific Objectives
In line with the board objectives, the following are the specific objectives of the study:
 To find out the challenges faced when using Electronic (automated) banking system at
Dhaka bank, Gulshan branch.
 To examine electronic (automated) banking services solution provided by the Dhaka
bank, Gulshan branch
 To examine Green Banking Activities in Dhaka bank, Gulshan branch.
 To analyze the different approaches in order to ensure security in Internet Banking
Information System at Dhaka bank, Gulshan branch

1.4 Scope of the study
There are number of scope of our studies .Each of them is listed below.
1.4.1 Geographical Scope
The study was conducted at Dhaka bank, Gulshan branch. It is located at Plot# 7 Block# SE (D),
24 Gulshan Avenue Gulshan-1, Dhaka 1212. This branch was chosen because it is the main
branch where the state of the art electronic banking service is expected to satisfy customers.
However, the branch was shown well performances to maintain Internet Banking services, thus
prompting the researcher to find out how they maintain Internet and Automated Banking
Systems.
1.4.2 Subject Scope
This study was to examine the Electronic and Internet Banking Systems and its maintenances, a
case study of Dhaka bank, Gulshan branch, Dhaka Bank Limited. Where electronic and internet
banking system was the independent variable and its maintenances was the dependent variable.
1.4.3 Time Scope
The study covered a period from 29 March, 2015 to 22 April, 2015. This time frame was selected
due to the fact that, this is the period in which we are supposed to make a study on an
information technology related topics according to our academic course curriculums.
1.5 Limitation of the Study
The present study was not out of limitations. But as it was a great opportunity for us to know the
automated banking activities in Bangladesh especially of Dhaka Bank Ltd. Some constraints are
appended bellow:
1.5.1 Lack of Information or Data: Adequate and in-depth well-organized
information is not available for access. Though the officials tried to assist us proper assistance
what we needed. There is some information which need special permission from top level is not
always achievable.

1.5.2 Time Constraint: It is something like impossible to us cover the entire overall
automated banking information and performance phenomena exploiting just one day visiting.
1.5.3 Secrecy of Information: Some of the information needed to explore the
current market scenario of the company was not disclosed.
1.5.4 Comparison Status: We have had no opportunity to compare the banking
information system of the Dhaka Bank Limited with that of other contemporary and common
size banks. We had compared the banks that information is available. It was mainly because of
the shortage of time and our course nature.
1.5.5 Lack of Experience: Though we have prepared many reports before, we
had no experience of visiting any corporate office. So inexperience is one of the main constraints
of the study.

Chapter Two
2. Methodology of the Study
It goes without saying that a methodology is very important in any research as it is a guideline or
framework for conducting research, which describes the methods of investigation, the concepts
and the underlying analytical structures of a particular problem. Without clear methodological
framework, direction of research may not be proper and scientific. In other words, a well-thought
and sound methodological framework (which includes different tools, techniques and strategies)
can help researcher conducting scientific investigation.
2.1 Data Collection Process
The present study is a part of academic curriculum. The collected data and information will be
tabulated, processed and analyzed carefully. It will be prepared in present from to make the study
more informative and useful. The study period has been made only with in very short time. We
tried our best to be acquainted with all information.
The data was collected from a combination of two major sources; primary sources and secondary
sources.
2.1.1 Primary Source
This is a source that provides raw data, from an original source and the data collected was used
for the first time to test the working hypothesis. The source provided first hand data through in
depth interviews and self-administered questionnaires were distributed to the selected
respondents at Dhaka bank, Gulshan branch and its stakeholders.
2.1.2 Secondary Source
This source provides data that is already in existence and has been used before. The researcher
supplemented the primary data through the use of secondary data. Secondary data was sourced
from a body of existing literature and publications like journals, newspapers, university library,
textbooks, magazines and documentary review of Dhaka bank, Gulshan branch‘ monthly,
quarterly and annual performance records.

2.2 Questionnaires
Initially we developed a draft questionnaire on paper topic. After some discussions among the
group members the questionnaire was finalized and then used for the survey. Open ended
questions were incorporated in the questionnaire.
Total 2 respondents responded to the survey (2 Official Members).
2.3 Study Areas
The study has been conducted in capital Dhaka. We conduct this study at Dhaka bank Gulshan
Branch. For our Couse purpose generally we conduct our study only for this branch.

Chapter Three
3. INFORMATION SYSTEMS IN BANKING
INDUSTRY
Information systems are extremely vital for the growth and survival of business organizations in
today's world. All sectors of the industry are entirely dependent on these for the management of
important information and data. Small organizations to large, powerful businesses such as high
street banks and central and local government are taking the help of information systems to
regulate their data.
3.1 Information Needs in Banks
The need of information was first realized in the banking industry. Being in the service sector,
banks needed to store information to better their services and gain a competitive edge over their
competitors. Basic services include the book keeping records of the customers while the
luxurious ones include the facility of an IVR (Interactive Voice Recording) through which
customers can get answers to their F.A.Q's. However, developing an information system needs
huge investments, responsibility of non-leakage of information (robustness of the system), and
various other security measures. Banks therefore need information at every stage possible. The
benefits of information are many. Today, decision making systems are also used by banks for
purposes of marketing newer loan schemes. Typically, banks might need information at the
following levels. (Information Systems in Banking)
3.1.1 Basic or Level 1
This is the most basic level. Information at this level might be used purely for administrative
purposes. Tasks include book keeping, account handling of customers etc. The revolution of
internet banking has made the basic level much more attractive to customers than it used to be.
Moreover the concept of phone banking through IVRs has further proved to be a major
technological step towards the progress of banks and IT systems.
3.1.2 Advanced or Level 2
At this level, information is crucial and is used at the managerial level. Managers use certain
information like stock listings, annual general meetings etc. in databases that is to be kept secure.
This information is supposed to be secret and cannot be distributed without consent and proper
authoritative power. Information at this level is hardly for customer use. However, in cases of

fraud and cheating, banks can use this as a safety measure to ensure their reputation does not
lose.
3.2 Use and Benefits of Information Systems in the Banking
Industry
The advent of computers has given rise to information systems being used as a business tool on a
large scale. Computers and more specifically information systems are being used on a large scale
by almost all businesses. The application of the capabilities of Information systems and
technologies brings out improvement in business processes (Davenport and Short, 1990). One of
the major sectors to reap the benefits of computers and information systems is the banks. The
nature of the banking industry along with other financial industries involves information and
trust. Being in the service industry, banks are in the most need of information. Technologies like
cloud computing and other internet based information storage systems have allowed banks to
deliver state of the art customer services to its customers while maintain the market
competitiveness required for gaining business. The following paper analyzes the information
needs of the banks at various departmental levels and compares the security levels used by banks
with those in other sectors. At the end of the paper, one should be able to understand the most
commonly used technologies in banks, the security measures currently used in banks and
whether or not there is scope for further improvement. (Lenard, 1997,)
3.3 Nature of Information systems currently used by banks
A variety of information systems are being used by banks. Currently, most banks operate with
multiple legacy systems that operate on a single mainframe computer (Lenard ML, Ferran C
1997). With times, this basic concept has not changed much. The concept of object oriented
programming has given rise to the use of multiple servers thereby reducing the load on a single
PC. Moreover, the internet has evolved as a complete source of secure technology that acts as a
useful resource to the banks. The advent of internet based systems (popularly known as web
based systems) has allowed banks to be more precise and keep a hassle free record system.
However, the internet based systems have led to many security issues. The next section describes
them.

3.4 Evaluation of Information Systems
Majority of the banks in the western countries and more recently in Asian countries use the
advent of information systems to bolster their business. Decision making tools, account
management systems, and internet based systems are widely used by banks to lure customers in
the quest to attract them. Since the sector they operate is the service sector, banks need to realize
that they can ill afford to let their customer service affect due to the technological advances. To
evaluate the information systems used by banks, one needs to realize the general nature of
information systems used by banks currently. (Short, 1990)
3.4 Security
The main problem of internet based applications is the level of security provided. There have
been a number of cases with the most famous ones being the ATM card duplication and credit
card faults have all arisen due to information system vulnerability. Therefore, banks need to
provide a level of security that cannot be breached. It is tough to say that the system is
―foolproof‖ since programming involves coding and decoding. Therefore what can be coded can
also be decoded. However, many security measures have been taken by bank authorities in
accordance with the IT professionals to allow smooth hassle free banking through the use of
computers and information systems. Some of the common security features include the secure
server technology (SSL technology), Enforcement of laws like the Data protection act enables
for more careful banking by the banks. The law enables anyone the use the information provided
over the internet with due care and only with the consent of the provider of that information. This
law has worked wonders in that it has made the owners of websites more responsible to such
mishaps. Information flooded over the internet can only be used for purposes said and described
prior to collection of it. Law thus acts as one of the barriers to those who want to breach it. Apart
from law, security levels include password remembrance systems, additional information
provision and providing passwords to specific phone numbers only. By doing this, the internet
has taken help of other acquisitions of humans into consideration. The logic is that a human
cannot lose all at a time and hence is a good measure to reduce the security threats (Taylor,
1997)
3.5 Cloud Computing
Cloud computing is the term given to applications which operate over the web and are accessible
to everyone who has an access to the internet. Intranet, knowledge based systems and websites
are all examples of cloud computing. Cloud computing takes help of a third party service
provider to rent the applications. With cloud computing, users need to have little expertise over
the computer and its working. This calls for major security threats since it can be accessible by

anyone who has access to a computer. Computer literacy is also little required. However, for our
chosen organization cloud computing is not suitable. Although in other service sectors, cloud
computing has worked wonders to attract customer base, banks cannot afford to use such
systems. In fact, banks can operate with secure systems and yet gain an advantage by stating
their expertise and care they take for their customers.
To conclude, the use and benefits of information systems in banks are many. Along with these
come many challenges which the banks need to take care of. However, with the wonderful
invention, banks have certainly been revolutionized.

Chapter Four
4. OVERVIEW OF DHAKA BANK LIMITED
(DBL)
The nation was just halfway of its age; the passion for history and heritage and an obsession for
faster pace exerted a powerful force for change in the business world. Many budding hopes grew
as a choice of the new generation in the shadows of banking reformation of the nineties. Dhaka
Bank is such a dream that spread in profusion modern banking prospects with deep attachment to
its community and culture. A host of visionary entrepreneur friends inspired by a futurist leader
set forth the fight of this great corporate voyage that echoed the speed of technology on the inner
soul of Bangladesh. Dhaka Bank was incorporated as a Public Limited Company on April 6,
1995 under Companies Act, 1994. The company commenced banking operations on July 5,
1995.
From the very year of its landmark journey, Dhaka Bank has truly cherished and brought into
focus the heritage and history of Dhaka and Bangladesh from Mughal outpost to modern
metropolis. Most of its presentation, publications, brand initiatives, delivery channels, calendars
and financial manifestations bear Bank‘s commitment to this attachment. The Bank is widely
recognized today for its exceptional service, simplicity, proximity and cutting-edge way of
delivery.
The Bank has stood
out for its financial
strengtand operational
craftsmanship marking
its position as the
potential market player
in all core areas of
banking in the country.
It got listed in DSE
and CSE in 2000.
Alongside a lasting
bond with the corporate world, DBL has got hold of a countrywide reach through a larger
network of Branches, ATMs, SME channels, agricultural outreach and mobile banking. DBL has
made its vibrant presence at 81 locations including 2 Islamic Banking Branches; and 1 Offshore
Banking Unit, 3 SME Service Centers, 1 Business Kiosk and 47 ATMs across the country.

Catering to the needs of Capital Markets, the Bank has established a subsidiary company named
‗DBL Securities Ltd.‘ having 6 countrywide Branches. (About Dhaka Bank)
4.1 Vision, Mission and Values
4.1.1 Vision
At Dhaka Bank, we draw our inspiration from the distant stars. Our vision is to assure a standard
that makes every banking transaction a pleasurable experience. Our endeavor is to offer you
supreme service through accuracy, reliability, timely delivery, cutting edge technology and
tailored solution for business needs, global reach in trade and commerce and high yield on your
investments.
Our people, products and processes are aligned to meet the demand of our discerning customers.
Our goal is to achieve a distinct foresight. Our prime objective is to deliver a quality that
demonstrates a true reflection of our vision- Excellence in Banking. (Mission-vision-and-values)
4.1.2 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.
4.1.3 Corporate Values
 Customer Focus
 Integrity
 Quality
 Teamwork
 Respect for the Individual
 Responsible Citizenship

4.2 Corporate Information
Name of the Bank Dhaka Bank Limited
Status Public Limited Company
Date of Incorporation April 06, 1995
Date of Commencement July 05, 1995
Registered Office Biman Bhaban (1st
Floor) 100 Motijheel C/A, Dhaka-1000
Bangladesh
Telephone 9554514
Telex 9556584, 9571013, 9565011
Swift Code DHBLBDDH
E-mail info@dhakabank.com.bd
Web Page www.dhakabankltd.com
Chairman: Mr.Altaf Hossain Sarker
Vice-Chairman: Mr. Mohammed Hanif
Managing Director Mr. Niaz Habib
4.3 SWOT Analysis of Dhaka Bank Limited
4.3.1 STRENGTH
 Better customer relation specially with the Small and Medium Entrepreneurs
 Better customer relation specially with the Small and Medium Entrepreneurs
 Short time requirements of in loan application processing and approval.
 Authority granted to the branch manager to avail excess limit to a client in sudden need.
 A very well organized Credit Unit.
 Correspondence with most of the countries of the world.
 Quick understanding of customer needs
 Efficient and effective means of determining value of the client‘s properties
 Capability of doing online banking, internet banking and SMS banking
 Strong procedure in selection of new borrow
 Clearly defined measure in dealing with foreign exchange transaction.

4.3.2 WEAKNESSES
 High cost of fund
 Lack of sufficient field officer to sell different products of the bank
 High interest charged
 Security and collateral requirement while disbursing the loans
 Fishery, poultry, dairy and agricultural sector which are largest business sectors of the
country are left out of the target market for loans and advances
 Lack of strong recovery team.
 More dependency rests on government sources for deposit mobilization.
 The techniques specified for credit appraisal is not sufficient
4.3.3 OPPORTUNITIES
 Rising of new business venture and prospective entrepreneurs
 Bank‘s attractiveness and goodwill in the current market.
 Collection of huge foreign remittance from expatriate Bangladeshis.
 Bank‘s business expansion to prospective remote areas.
 Government positive attitude towards low classification.
4.3.4 THREATS
 Increased competition imparted new market participants in the banking industry
 Newer banks with diversity and flexibility to charge variable interest rates to different
loan applicants
 Banks with source of low cost fund are getting much better position in SME financing
(Report on Overall Banking of Dhaka Bank Limited)

Chapter Five
5.Present Management and Banking Information
System at Dhaka bank
Since Dhaka Bank starts its journey as a Commercial Bank in 1995 Dhaka Bank Limited (DBL)
has been laying great emphasis on the use of improved Technology. It has gone to Online
Operation System since 2003 when two new banking software namely FLEXCUBE & DBCUBE
was installed. But this installed software is used only for their central banking system. For their
regular branch office they use accounting software called UBS.UBS is a software solution that is
previously used by different bank in Bangladesh. But the IT division of Dhaka bank customizes
its operation according to their needs. As a result the Bank is able to give the services of
international standards. The bank has launched its Corporate Portal (Intranet), which was
initiated by IT/BPR with the primary goal to provide comprehensive and collaborative content
management, paperless communication and information management, and to provide a gateway
to the web application across the enterprise within one integrated platform, instead of relying of
separate fragmented systems.
After observing and analyzing their regular accounting system we found that employee are not
fully satisfy using this present system though it works very well with some little errors .As they
customize and adapted this system according to their needs they get some advantages for using
this system but at the same time it includes some disadvantages too. Both the advantages and
disadvantages of their current UBS account system are given below.
5.1 Why Dhaka bank Use UBS computerized accounting
system for their Banking Information System?
 Speed – data entry onto the computer with its formatted screens and built-in databases of
customers and supplier details and stock records can be carried out far more quickly than
any manual processing.
 Automatic document production – fast and accurate invoices, credit notes, purchase
orders, printing statements and payroll documents are all done automatically.
 Accuracy – there is less room for errors as only one accounting entry is needed for each
transaction rather than two (or three) for a manual system.

 Up-to-date information – the accounting records are automatically updated and so
account balances (e.g. customer accounts) will always be up-to-date.
 Availability of information – the data is instantly available and can be made available to
different users in different locations at the same time.
 Management information – reports can be produced which will help management
monitor and control the business, for example the aged debtors analysis will show which
customer accounts are overdue, trial balance, trading and profit and loss account and
balance sheet.
 GST/VAT return – the automatic creation of figures for the regular GST/VAT returns.
 Legibility – the onscreen and printed data should always be legible and so will avoid
errors caused by poor figures.
 Efficiency – better use is made of resources and time; cash flow should improve through
better debt collection and inventory control.
 Staff motivation – the system will require staff to be trained to use new skills, which can
make them feel more motivated. Further to this with many ‗off-the-shelf‘ packages like
MYOB the training can be outsourced and thus making a particular staff member less
critical of business operations.
 Cost savings – computerized accounting programs reduce staff time doing accounts and
reduce audit expenses as records are neat, up-to-date and accurate.
 Reduce frustration – management can be on top of their accounts and thus reduce stress
levels associated with what is not known.
 The ability to deal in multiple currencies easily – many computerized accounting
packages now allow a business to trade in multiple currencies with ease. Problems
associated with exchange rate changes are minimized. (E-banking software_tools)
5.2 What are the problems Dhaka bank is facing for
maintaining this UBS computerized accounting system?
 Cost – Although some small business accounting packages are reasonably priced, the
cost of the software is not the only cost of using the software. UBS Accounting software
requires minimum standards for computer use in regards to RAM, processor speed and
hard drive memory. Making a backup of your accounting data may also require more
storage space than an Excel spread sheet, which is easily copied to a flash drive.
Technical support for the software may cost extra, and you can incur annual licensing
fees in order to receive upgrades. If you are not skilled in software installation or
accounting setup, you may also incur the cost of hiring a consultant to perform those
tasks for you.

 Difficulty – Some accounting software packages are designed specifically for non-
accountants, but you will still experience a learning curve when converting to any
software package. If you have never used accounting software before, learning the
accounting terms, layouts and determining a proper setup may be more difficult than the
benefits received from utilizing the software. Running your own business already comes
with enough stress and aggravation. You should not add the stress of learning accounting
software to the mix unless it is absolutely necessary or the gains from utilizing the
software outweigh the losses.
 Time – Processing expenses and invoices in accounting software will usually take more
time than simply logging the expense on a ledger pad or spread sheet software and
creating handwritten invoices or spread sheet-based invoices. If using the computer is not
a large part of your daily routine, the time required to process basic daily financial data
may outweigh any benefit gained from the software.
 Maintenance – Maintaining accounting software not only includes performing upgrades
to the accounting software package, but also maintaining and upgrading all the necessary
equipment to utilize the accounting software as new versions can require upgraded
equipment. That equipment often includes your PC or laptop, monitor, printer, Internet
connection and modem, backup drive and operating system. If you do not wish to spend
the time and money to keep your equipment in compliance with the accounting software,
it is best to stick to spread sheet or ledger accounting.

Chapter Six
6. Future Information System that will be used at
Dhaka Bank
Oracle FLEXCUBE Core Banking helps banks overcome the challenges of intense competition,
reduced margins, and increased customer expectations by creating a unique competitive
advantage built upon improved profitability and an extended customer reach.
With Oracle FLEXCUBE Core Banking, banks gain a cost advantage through straight-through
processing and exception handling. In addition, the solution supports regulatory requirements in
key markets through a highly secure data management system, which can easily integrate with
third-party solutions at your bank.

Oracle FLEXCUBE Core Banking's application architecture supports agile and business
processes management using Business Process Execution Language (BPEL), service-oriented
architecture (SOA), and a Web services-based model. It enables integration of all third-party
applications, including in-house banking software, to facilitate simple and complex business
processes.
Dhaka Bank Ltd easily can automate their whole banking operations with BPEL and link them to
a large set of Web services within the Oracle FLEXCUBE suite. (Oracle-flexcube)
6.2 Reason for Using FLEXCUBE as Core Banking System
 24/7 processing of large transaction volumes, with high availability.
 Multiple delivery channel support, including branches, ATMs, point-of-sale terminals, call
centers, mobile devices, and internet banking.
 An XML Web-based user interface with context-sensitive help.
 Security management covering application and role-based access.
 Online validations and automated exception processing.
 Centralized, decentralized, and combination deployments.
 Ease of integration with existing systems using flexible Java Platform, Enterprise Edition
technology.
 Service-oriented architecture supports agile business process management.
 Componentized architecture helps build scalable and reusable solutions.
 Deliver product extensibility and increase flexibility and interoperability.
 Empower customers for self-service.
 Enable up-selling and cross-selling through intelligent dashboards.
 Drive higher fee Income with differentiated investment services.
 Monitor, manage and regulate processes, compliance and reporting.

6.3 Bank Currently Using FLEXCUBE as their core banking
system
6.3.1 Citi-Bank - Citibank, one of the largest banks in the world (www.citibank.com), was
managing its banking operations through a multicounty system. This system—with 59 versions
in 94 countries made it difficult for the bank to carry out system wide modifications. i-flex
FLEXCUBE (now Oracle FLEXCUBE Universal Banking was initially deployed to replace the
legacy back-office application (Core System Replacement ,a case Study of Citi-bank, 2002)
6.3.2 Natixis - Ranked among the largest banks in Europe, Natixis was experiencing
problems with its information systems and processes. It wanted to deploy a solution with
technical and functional homogeneity across all European branches without compromising local
requirements, and to reorganize and streamline international operations and build strong
information systems and processes. The bank initially planned to deploy Oracle FLEXCUBE
Universal Banking for its branches in Spain and Germany but subsequently extended the
deployment to Panama and Dubai.
6.3.2 Dutch Bangla Bank- Dutch Bangla Bank has been using world famous Core
Banking Solution, Flexcube Retail (FCR) and Flexcube Corporate (FCC) from the house of
Oracle Corporation since 2004. In the course of time, the bank has grown very large. The mass
people of the country has put their trust, faith and confidence on Dutch Bangla Bank, the
technology being one of the most important factors in doing so. The Dutch Bangla Bank
management, officers and executives are well concerned about it and trying to meet their
expectations. Dutch Bangla Bank has never allowed the interest of its valued clients to fall.
Considering these, the Dutch Bangla Bank management has decided to upgrade its Core banking
Solution from FCR & FCC to Flexcube Universal Banking Solution, FCUBS 11.2. (Core-
banking)
6.4 Reason for Adopting New Technology
 FLEXCUBE enables banks to standardize, transform and optimize banking business
processes. Banks can use FLEXCUBE to simplify and streamline
processes, track and administer complex multi-step transactions, efficiently distribute
workload and improve customer service by using predefined custom processes for
different segments of customers.

 Banks can achieve competitive differentiation by developing innovative business
offerings and to fine tune their processes based on insight and measurement. The release
of FLEXCUBE enables banks to and accomplishes this holistically.
 FLEXCUBE provides users with dashboards to measure process
performance and identify bottlenecks for process improvement. The product serves
Governance and Risk & Compliance frameworks allowing institutions to be compliant
with changing regulations, monitor fraud and manage their risks.

Chapter Seven
7. Other IT Related Banking Services provided
by Dhaka Bank Limited
7.1 E-Statement
This is the first time Dhaka bank Ltd. processed E-Statement for customer. To process E –
Statement automatically IT Division developed an In-house Software, which is already using for
processing DBL Employees Statement from 2013 January. Account Statement sending through E
– Mail can be benefited financially for the bank such as Printer, Paper or Courier cost is not
associated and also a part of implementing central Bank‘s Green Banking Policy.
7.2 Remittance Distribution
Remittance has a huge contribution in our economy. It is the second highest contributor to our
GDP. To facilitate smooth flow of remittance from foreign country to a remote place of the
country, Dhaka Bank has made arrangement with reputed remittance payment gateway like
Western Union, Al Ansary, Cash Express/Placid and Express Money. The technological platform
between these companies and Dhaka Bank is established by IT division. They are also providing
all necessary technical support to branch level for smooth pay out of remittance.
7.3 Green Banking Activities
They have been using a high performance automated core banking software and e-mail for intra
bank official correspondence where no more manual banking is required. With a view to
reducing the usage of hard copy statement as well as to popularize paperless banking, Dhaka
Bank, of late, introduced e-statements, M-Banking, Internet Banking, ATM, and ADM. Through
e-statements client can view, download or print an electronic version of the statement that looks
just like the paper version. Dhaka Bank is also planning to introduce Solar power ATM operation
on test basis and will be rolled out more this year.
Dhaka Bank Limited has been using twenty-first century‘s technology VIRTUALIZATION for
Data center Server & Application. With the help of VM server Administration, scalability and

recourse management have improved tremendously. Also the costs of Power, cooling, space
have reduced significantly.
7.4 IP Phone in Dhaka Bank
IP (Internet Protocol) Technology is the base of all digital communication. Basically it was
evolved for data communication and gradually evolving widely for using of voice transfer. In
every network even internet hub runs on IP. Voice communication through IP network is
popularly known as IP Telephone.
In development of telecommunication and connectivity in Bangladesh, scope of IP telephony
increases. Government provided licenses to different companies for IP telephony services
(IPTSP). For any internal communication within own organization through soft switch is open
but to reach other operator an IPTSP is required. Connectivity is the prime requisite for IP
Telephone. Due to centralized banking operations, all branches are connected mostly fiber link.
So the Dhaka Bank Limited setups IP Telephone by using an IP PBX – Soft or Hard. To waive
cost and limitations, they prefer soft PBX. BDCom online is one of the IPTSP and they have
selected their soft PBX for ip phone setup.
7.5 Electronic Fund Transfer (EFT)
Dhaka Bank Limited has successfully implemented EFT process as per Bangladesh Bank
requirement. They also played Pilot Bank role in that project. Gradually now all branches and
few divisions of Dhaka Bank Limited are using Electric Fund transfer specially Business
Operations division for Remittance & dividend processing.
7.6 Online Utilities Bill Payment
Dhaka Bank Limited has implemented most advanced solution in receiving WASA bill payment
through its branches jointly with Dhaka WASA. With the help of Business Operations Division,
IT Division has developed a full real time online web based platform in order to receive WASA
bill payments and update the Dhaka WASA central database accordingly. This facility has
enables anyone needs to pay the WASA bill in a smooth and hassle free manner.
7.7 MRP and MRV Free Collection
Dhaka Bank Limited being a tech-savvy bank supported by state-of-the-art technology always
prioritizes digitalized financial and banking services that they have been doing for more than a

decade. Although they carry out formal banking operations through our 74 branch locations but
virtually they are present here and there across the globe through real-time online banking, card
services, internet banking, utility bill collection units and remittance network. DBL has signed a
contract with Department of Immigration & Passports and five leading banks which will pave the
way to technological leadership in public payment system. Besides, this will strengthen green
banking initiative which is already on the go in Bangladesh. By this agreement, the following
mile steps will be achieved.
It‘s most inspiring to see, their payment system is getting more tech-savvy and bank-centric. The
more they add technology to public payment system, the more they can relieve people‘s pain and
financial insecurity. (information-technology-division)

Chapter Eight
8. Findings of Our Study
After conducting our studies at Dhaka Bank we are able to find several aspects of automated
banking information system in Bangladesh. All the finding of our studies is listed below.
1. Most of the banks in Bangladesh are using their own automated baking information and
management system for providing better services to their client and employee.
2. Dhaka Bank Ltd uses an automated information system that is imported from India
named UBS.
3. This information system named UBS is previously used by many banks in Bangladesh
for example DBBL, Citibank.
4. As UBS is developed by an Indian software firm, they didn‘t develop this system only for
the needs of any bank running their services in Bangladesh.
5. For better using of this system the Information Technology division of Dhaka Bank Ltd
customizes this system according to their needs.
6. As any information system is not suitable for every company policy, there remain some
system bugs in their system after customizing this system.
7. Now for better performance and services Dhaka Bank in now moving for adopting a new
technology called Oracle flexcube as their core banking system.
8. Oracle flexcube is the most popular banking information system that is used by many
banks in Bangladesh and other foreign countries. It gives better performance and security.
9. Here we noticed most important point that most of the bank in Bangladesh doesn‘t use
any information system developed by any Bangladeshi software firm.
10. The reason why they don‘t use is Bangladeshi software firm didn‘t prove their ability and
work in front of global banking industries. Besides there is actual benchmarks of software
work in Bangladesh.
11. Using imported information system has some demerits too. When any problem occurs in
their system they didn‘t get the proper services from the software firm immediately.

Chapter Nine
9. Conclusion and Recommendations
Technology has introduced new ways of delivering banking services and products to the
customers. The recent "Information Technology (IT) revolution" has exerted far-reaching impact
on economics, in general, and the financial service industry, in particular. This Study examines
the automated banking information system of Dhaka Bank Ltd.
9.1 Conclusion
In the conclusion, we want to state that, this emerging sector needs an important look from the
respective authority. Bangladesh has the most potential chance do well in this sector world-wide.
Automated banking system is must for a developing country to grow the economy quick. In this
aspect, we tried to discover the basic need of ICT sector related with this system. The
Government of Bangladesh should take necessary steps to give opportunity to the ICT
companies and software farms to do their best from all respect.
9.2 Recommendations
1. Necessary steps should be taken to advertise the local ICT companies and software farms
with banks and organizations.
2. Future software engineers should be encouraged to be world class professional.
3. Govt. should take steps to make a parameter to evaluate and recognize the ICT
companies and Software farms.
4. Banks and giant organizations should rely on local ICT companies and Software farms.

Bibliography
 (2002). Core System Replacement ,a case Study of Citi-bank. Boston, MA 02109 USA: Celent
Communications.
 About Us. (2003, 01 03). Retrieved 04 17, 2015, from Dhaka Bank Ltd: http://dhakabankltd.com
 About Dhaka Bank. (n.d.). Retrieved 04 21, 2015, from Dhaka bank Ltd:
http://dhakabankltd.com
 Core-banking. (n.d.). Retrieved 04 25, 2015, from Dutch Bangla Bank:
http://www.dutchbanglabank.com
 E-banking software_tools. (n.d.). Retrieved 04 24, 2015, from UBS: http://www.ubs.com
 Information Systems in Banking. (n.d.). Retrieved 04 18, 2015, from ukessays:
http://www.ukessays.com
 information-technology-division. (n.d.). Retrieved 04 28, 2015, from Dhaka Bank Ltd:
 Lenard, C. F. (1997,). An Object Oriented Approach to Banking Information Systems. Journal of
Information technology, pp. 1-7.
 Mission-vision-and-values. (n.d.). Retrieved 01 22, 2015, from Dhaka Bank Ltd:
 Oracle-flexcube. (n.d.). Retrieved 04 25, 2015, from oracle: http://www.oracle.com
 Report on Overall Banking of Dhaka Bank Limited. (n.d.). Retrieved 04 23, 2015, from
Assignment point: http://www.assignmentpoint.com
 Short, T. D. (1990). Information technology and business process design. Operations
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Appendix
Questionnaires
 What is your company‘s IMS?
 Is your system completely technology based or you record a ledger?
 Which type of software you use copyrighted (solely developed for you) or generic (other
companies also run it)?
 Does your system have any technical bug?
 Who is your software provider?
 Why do you choose a foreign IT company instead of local?
 Don‘t you believe, local IT companies can provide them to you?
 What is the main functionality of the system (as far you are allowed to tell us!)?
 Who can access your different level user interface?
 How clients get benefit through your system?
 What is the database management system of your software?
 How do you get the service from your provider?
 Who is the administrator of your system software?
 Tell us about your IT section?
 Do you have any personal information database?
 Does your system run any forum?
 Do you get solutions of your problems?
 We came to know that, you are upgrading your system with new software, what is the
reason behind?
 How do you get services from your provider?
 Don‘t you think this is a little bit unease rather having a local provider?
 What is your requirement from a local IT company if they want to provide?
 You think there should be a parameter to evaluate the local IT companies, what is your
suggestion about that?
 Who do think to take this responsibility to parameterize?
 Do you think Govt. would take this sort of initiatives to show Bangladeshi IT companies
a better path?
 What is your opinion about future software engineers like us?
 If, imagine, we ask you to have our service, what is your expectation from us?
 Is there any kind suggestion from you for us?

A Study on Banking Information System.

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