MIS in Finance (Management Information System)


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Presentation on "MIS in Finance" by Shabbir Akhtar (PGPM 10, Globsyn Business School - Global Campus) for the subject "Management Information System"

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MIS in Finance (Management Information System)

  1. 1. MIS in Finance Presented by – Shabbir Akhtar (PGPM 10, Globsyn Business School – Global Campus)MIS in Finance
  2. 2. State Bank of India Worlds LargestCentralized Core Processing Implementation Case Study
  3. 3. Overview• Founded as bank of Bengal in 1806 and today largest bank on earth in terms of branches, accounts and other metrics• SBI consists of itself plus 7 associate banks• Total of 17385 branches in India, 20000 ATMs• Employee strength : 205000• Asset of USD271 billion incl. associate banks
  4. 4. State Bank of India – IS• In 1991, bank undertook computerization initiative using KINDLE BANKMASTER to be deployed in largest branches• Used a standalone IBM mainframe for interbranch re-conciliation• In2003, rolled out internet banking
  5. 5. Decision to Migrate to Core Systems• Customers did business with branch not bank• Losing corporate customers• Due to technology dis-advantage, bank was loosing deposit share (26%-23%)
  6. 6. Selection of TCS BaNCS• TCS group included Hewlett-Packard, Financial Network Services (FNS), and China Systems• 24x7 availability providing customer service• Online real time internet banking• Faster product launches• Primary data centre set up – Mumbai• Duplicate set up – Chennai
  7. 7. Implementation Milestone• TCS set up team of domain experts, architects, product experts• TCS people trained employee of SBI• 58 training centres• More than 175000 employees trained• Processing results: 1577 transactions/second
  8. 8. Reports
  9. 9. Grameen Foundation Improving Lives Through Better Microfinancing Case Study
  10. 10. The Need• Banking services not available to those wanting to raise their standard of living• Even a small amount of money can become a source of subsistence• Conventional banks cannot cover costs dealing with such small sums• People are often forced to turn to unregulated local moneylenders who charge huge interest• The microfinance movement was born in the 1970s• MFIs now serve nearly 18% of the population, with approximately 188 million accounts
  11. 11. The Problem• MFIs operate very differently from conventional financial institutions• MFI representatives travel to villages and meet with them at home or in village meetings• Simple spreadsheets or even handwritten paper records are often used to handle transactions• Information is often inaccurate due to recording and data entry errors• Bank management does not have visibility into the actual cash position of branches
  12. 12. The Solution• Conventional integrated banking is neither suited to nor affordable for MFIs• MFIs need simplicity, low maintenance, low cost and the flexibility to run on various hardware platforms• Need to increase visibility, roll out new products faster, efficiently add new customers and branches, and raise capital — all important factors• Need the ability to centralize information in order to grow the business
  13. 13. The Solution Provider• Grameen Foundation was formed to address this need• With a mission that included finding ways to use technology to better deliver microfinance services• The Foundation set out to develop a software platform designed specifically for the needs of MFIs• IBM teamed with Grameen to take the first, Foundation- developed version of Mifos to the next level• IBM engineers worked closely with Foundation developers• The team made use of the Eclipse Web Tools Platform development environment, an open-source toolkit originally developed by IBM
  14. 14. The Implementation• Grameen Foundation and IBM worked closely with Grameen Koota, an MFI serving parts of India• Its legacy systems were spread across 46 branches and there was no centralized data or application repository• Skepticism among the local Grameen Koota branches existed• The deployment experience provided valuable lessons, highlighting key considerations for the industry• Three important things learnt: – First, data migration is key – Second is the need to adapt to the new technology – Third is the need to align business processes with the technology
  15. 15. The Result• Grameen Koota field representatives can now record transactions as they are conducted• This information, updated in real time, makes it possible to produce reports much more quickly• The bank now knows its cash position at the close of each day• Field representatives can carry less cash, increasing efficiency• New products can be introduced very easily now, it takes just three days• Grameen Koota now serves some 400,000 customers, and is on course to reach its goal of two million within five years
  16. 16. The Reports
  17. 17. Thank YouMIS in Finance