85323526 final-case-study-report-of-mis
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DEPARTMENT OF COMMERCE
AND MANAGEMENT STUDIES
UNIVERSITY OF CALICUT
REPORT ON CASE STUDY IN FEDERAL
BANK, RAMANATTUKARA
Submitted to, submitted by,
Dr. P. Mohan Harikumar c
Faculty, DCMS Vishad k
Sareesh k
Submitted on: 29-feb.2012
ACKNOWLEDGEMENT
We would like to keep on record our heart full thanks to our HOD, Prof.M.A.Joseph,
DCMS Calicut University.
We express our special thanks to Dr.P.Mohan, lecturer in Management Information
System, for his encouragement, able guidance and kind co-operation projected at
various stages of this work.
The case with which the firm visit could be conducted was wholly due to the whole
co-operative assistance of Senior Manager, Federal bank- Ramanattukara, and staff
members of the entire division of the concern, for their valuable suggestions and
ideas.
CONTENT
SL NO:
TOPIC
PAGE NO.
1 ABSTRACT 1
2 INTRODUCTION 2
3 ABOUT THE FIRM 3
4 LITERATURE REVIEW 5
5 CASE ANALYSIS AND DISCUSSION 7
6 FINDINGS 13
7 CONCLUSION 16
8 REFERENCES 17
ABSTRACT
In today’s world, which is highly competitive, having the proper installed
management information system is a basic reason for the survival and growth of
banking companies in general. In fact it is the era of the information explodation. All
banking deals with the well maintained MIS to track the customers from time to
time. Proper planning and installation of MIS in a bank, is a must.
We visited FEDERAL BANK, RAMANATUKARA on 24th February, 2012 to study the
MIS installed in the bank. The study helped a lot to understand what sort of impact
can be made by the proper MIS to the bank.
The objective of the study is to understand the way in which the bank is conducting
its events with the help of its well established MIS. Federal bank is using MIS in a
well arranged manner and gaining maximum advantage through the system.
Introduction
The globalisation of business, widespread technological innovations, social
and political changes and an increased awareness in customers are some of the
factor that has forced the business world to undergo rapid changes. A growing need
for guidance on concept, issues and strategies for understanding, developing and
managing information system in organisation is being felt over the world. This is
because of the fact that information is vital and necessary input in decision making.
It goes without saying that all managerial functions are performed through
decision making; for taking rational decisions, timely and reliable information is
essential and is procured through a logical and well structured method of
information collecting, processing and disseminating to decision makers. Such a
method in the field of management is widely known as management information
system (MIS)
In today’s world of ever increasing complexities of business as well as
management, every business organisation, in order to survive and grow, must have
a properly planned, analysed designed and maintained MIS so that it provides timely
, reliable and useful information to enable the management to take speedy and
rational decision.
Here we, HARI KUMAR C, SAREESH K AND VISHAD focusing on the MIS of the
Ramanatukara Branch of Federal bank in the coming pages.
Type Public Traded As NSC:FEDERAL BANK
BSC:500469 LSC:FEDS
Industry Banking And Allied Industries Branch name Ramanattukara
Address Ramanattukara, Kozhikode, Kerala
About The Firm
Federal Bank- An Overview
Founded Kochi 1945
Headquarters Federal Towers, Aluva, Kochi 683 101 Kerala, India
Key People Shyam Srinivasan(CEO)
Products Loans, Savings, Etc......
Website www.federalbank.co.in
BANK PROFILE
Federal Bank is a fast growing premier private sector bank in India with
business exceeding INR 3,600 million and INR 61.3 million. As of December 31, 2011,
it has 832 branches spread across 24 states in India and 803 ATMs around the
country (across 108 metro centres, 224 urban centres, 384 semi-urban locations and
87 rural areas). The bank is planning to expand its branch network to 1000 by march
2012.Technology has played a major part in the bank’s aim to differentiate itself to
its customers. ATMs, Internet, mobile banking and other channels have broken the
barriers of location and time, and have expanded the reach of the bank’s
operations, earlier confined to the branches.
Background of federal bank
the federal bank limited, previously known as, the Travancore federal bank
limited in its entire span of customer services has been both ups and downs. The
bank started with an auction-chitty business along with other banking transactions
related to agriculture and industry. In the year 1945 a new board of directors was
constituted and opened a branch in Aluva. A massive expansion plan was introduced
in the years 1975 and1976by opening 53 and 42branches respectively.
Across the globe, banks focus on IT investment protection, best use of
available resources and reuse of developed components. Even though the objectives
appear to be simple, putting these into practice has been a tough task and very few
organizations have accomplished these objectives on a scale that is comparable with
the global standards and demonstrated perceivable benefits. Federal Bank is one of
the very few organizations that have accomplished these objectives.
LITERATURE REVIEW
What is MIS?
A management information system (MIS) provides information which is
needed to manage organizations efficiently and effectively. Management
information systems involve three primary resources: people, technology, and
information or decision making. Management information systems are distinct from
other information systems in that they are used to analyze operational activities in
the organization.
The successful MIS supports a business's long range plans, providing reports
based upon performance analysis in areas critical to those plans, with feedback
loops that allow for titivation of every aspect of the enterprise, including
recruitment and training regimens. MIS not only indicate how things are going, but
why and where performance is failing to meet the plan. These reports include near-
real-time performance of cost centers and projects with detail sufficient for
individual accountability.
Types of MIS
Most management information systems specialize in particular commercial and industrial sectors, aspects of the enterprise, or management substructure.
Management Information Systems (MIS), per se, produce fixed, regularly scheduled reports based on data extracted and summarized from the firm’s
underlying transaction processing system to middle and operational level managers to identify and inform structured and semi-structured decision problems.
Decision Support System (DSS) are computer program applications used by middle management to compile information from a wide range of sources to support problem solving and decision making.
Executive Information System (EIS) is a reporting tool that provides quick access to summarized reports coming from all company levels and departments such as accounting, human resources and operations.
Marketing Information System are MIS designed specifically for managing the marketing aspects of the business.
Office automation System (OAS) support communication and productivity in the enterprise by automating work flow and eliminating bottlenecks. OAS may be implemented at any and all levels of management.
School Management Information System (MIS) cover school administration, often including teaching and learning materials
THE MIS STRUCTURE OF FEDERAL BANK
HEAD OFFICE
MANAGER
ZONAL OFFICE
MANAGER
REGIONAL OFFICE
MANAGER
BRANCH OFFICE
SENIOR MANAGER
INTR
AN
ETWO
RK
DR
ISYA
MED
IA
CASE ANALYSIS AND DISCUSSIONS
Federal bank has the great potential to become the best service provider in its
area of operation. Its management information system includes the introduction of
the software named finacle and the intranet, drishya media they are using.
Why MIS in Federal Bank?
One of the main challenges on the way to growth for Federal Bank's management
team was to choose between a packaged cores banking solution or to continue
leveraging its proprietary system. The bank envisaged aggressive plans for growth -
both organic and inorganic, and the team ultimately felt that the existing proprietary
system was not capable of meeting requirements due to its rigidity. The
commitment to goals and an organization-wide attitude to welcome the change
were most important for the final decision in this regard. As per the management at
Federal Bank, to move to a new generation core banking solution, it was essential
that:
The new solutions was capable of accommodating and building upon existing
products that the bank offers and also help bank release futuristic products.
The new solution significantly improves the customer's banking experience
ASSISTANT MANAGER ASSISTANT MANAGER
PROBATIONARY OFFICER
CLERCK CLERCK
CLERCK
The system is capable of interfacing with various delivery channels like ATM,
Internet banking and so on
The new solution helps the bank comply with regulatory requirements. The
next step was the selection of the packaged solution.
Federal Bank framed a well-defined and clear-cut plan for selection of
appropriate system identifying the strength and weakness of the recourses
and infrastructure available
A strong pool of experts was identified to lead the mission
A thorough selection process was initiated which resulted in three shortlisted
solutions
Vertical and horizontal evaluation process was performed by experts taking
inputs from all possible sources
The bank's team mapped the capabilities of each system against the business
requirements and Finacle from Infosys was selected by the bank.
What is Finacle?
FINACLE universal banking products are designed to address the core banking,
e-banking, Islamic banking, and treasury, wealth management and CRM
requirements of retail, corporate and universal banks. It is developed by Infosys and
is one of the major players in the arena of core banking in Indian and Asian banking
domains.
Services
Providing support & services is typical in such huge software implementations.
Services provided by Infosys for the maintenance of the application include.
Application development and maintenance
Application management
Independent validation
Migration services
Performance tuning
Software performance engineering
System integration
Value mining
Integration into Pricing Engines typically used in Banks, with partners such as
Suntec.
FINACLE – The solution
Federal Bank decided to adopt a centralized architecture for better efficiency,
more control and for meeting challenges of the future. After a rigorous selection
process, Federal Bank decided to adopt innovative technology by procuring Finacle
universal banking solution from Infosys to fuel its retail core banking transformation
initiative.
The solution was fully equipped to accommodate and build upon existing
products that the bank offered to its retail customers and empower the business to
introduce futuristic products as well. It promised to significantly improve the
customer's banking experience and support it through various delivery channels like
the Internet etc. A significant reduction in time-to-compliance was another key
solution differentiator.
The replacement exercise began with rigorous testing of the Finacle solution using a
large number of test cases, representing various types of retail transactions typical
of Federal Bank's operational scenario. The setting up of the data centre and
disaster recovery site in accordance with international standards, in different
seismic zones, was also planned and executed.
Federal bank started an aggressive roll out of the system in the last week of April
2007. Once the full-fledged implementation started, the bank surmounted the
change management challenges in human capital. The most important factor was
getting the staff to unlearn whatever they had learnt and the staff had to be
motivated to assimilate the benefits of migrating to a new environment, explore
more of the new solution and draw more from it.
Federal bank is an end-to-end solution provider for customers in a distributed
system through various channels such as ATM, telebanking, mobile alerts, e-mail
alerts, and electronic bill payments, RTGS, NEFT and its flagship offering – anywhere
banking. Federal Bank identified 36 channels, which enabled the bank to run a
centralized system even though it was running on a distributed system; seamless
integration of these entire channels was a major focus during CBS implementation.
The solution is designed with Oracle RDBMS back-end; open architecture is
developed and tuned on HP, Sun & IBM UNIX platforms.
Finacle solution came ready with almost all channel services. A major business
challenge was the seamless integration of these channels providing customers with
un-interrupted service even during the transition period. The technical team
identified Finacle channel integrator Connect 24 as the starting point for channel
integration. Most of the Fed Soft legacy system was integrated with Financial
Messaging Service (FMS) and an interface was internally developed for
communicating between Fed soft and Finacle. Every channel was integrated thought
this interface.
Some Federal Bank channel features integrated are listed below;
FedNet (Finacle e-Banking)
A customer who wishes to access his/her accounts through Internet has
to register by submitting the FedNet application downloaded it at the branch
where he/she is having the account. If the account is maintained by more
than one person (irrespective of the various modes of operations like, Joint /
Either or Survivor etc), mandate in favor of the user (operator) in the specified
form also should be submitted along with the application. There are separate
mandate forms download it for individual accounts and
Partnership/Trust/Company etc accounts. Mandate form should be signed by
all the account holders/signatories. In case accounts in more than one branch
are to be linked, customer can submit the FedNet application to any one of
these
E-mail alerts
Now the customer can receive their account details in their mailbox. All
they need is an email address for receiving the alerts. Following are the areas
covered under e-mail alerts
Statement of accounts: the customer have the option to request Daily, /
Weekly / Monthly statement of accounts and can receive statement by email
provided there was transactions in that account during the period selected.
Intimation of cheque book issue: the customer will receive e-mail intimation
of cheque issue in the registered account on the same day.
Deposit due date intimation: the customer will receive the due date
intimation mail 10 days prior to the actual due date.
Deposit renewal details: the customer will receive the details of the new
account by email on the same day of the renewal.
Standing instruction expiry: The customer will receive the intimation mail 10
days before the standing instruction is due for expiry.
FedFast
Fed Fast is the state-of-the-art remittance platform through which NRIs
can make Rupee remittance from Gulf countries to the beneficiary’s account in
India. Once the remitter remits money at the Bank / Exchange house in the Gulf,
the amount is credited to the beneficiary’s account with Federal Bank or any
other Bank within a short span of time.
Why Fed Fast?
Fed Fast is not restricted to the Federal Bank customers alone. NRIs can
also remit funds through Fed Fast to accounts with any banks in India. Federal
bank have the largest number correspondent arrangements from GCC and this
gives more choices for our customers to transfers funds. Federal Bank have tie-
ups with 52 Exchange Houses and 5 Banks in the Middle East for making
remittance.
Mobile banking
This is a facility that enables customers to access banking facility through
mobile. Mobile Banking enable customers to make inquiries and do transactions
(like fund transfer, cheque book request etc.) through their mobile phones
Eligibility
All SB and current account holders with mode of operation as Single/
Sole proprietorship, either or survivor or anyone or survivor can be registered
for FedMobile facility. Joint accounts and accounts in which minors are
involved are not eligible for FedMobile registration
Services Offered
PULL based services (initiated by the customer)
PUSH based services (originated by the Bank)
Request services (initiated by the customer for placing various
requests/instructions to Bank)
(The customer can avail Mobile Banking on any Mobile Phone with valid connection
from a service provider. However for enjoying all the services offered through
Mobile Banking, a handset with added features is essential.)
Technology in Use
SMS: It works on the "Text Messaging Facility"also called the SMS that is
available on mobile phones. This facility allows you to send a short text
messages to 5676762 or +919895088888 from your mobile phone instead of
making a phone call. The response is sent to you as an SMS message, all in the
matter of few seconds.
GPRS: General Packet Radio Service (GPRS) is a packet oriented mobile data
service through which you can access the services of Federal Bank Mobile
Banking using your MPIN. GPRS will be enabled by the mobile service
provider.
J2ME: Using GPRS Internet Connection, You can download the Mobile Banking
application on your mobile handset from our Bank's website
https://mobile.federalbank.co.in/j2me
FedEpay
Cash management system (CMS).
RTGS –FedFlash
Anywhere banking
FINDINGS
In the fast changing environment of the Indian banking space, the speed and
efficiency of banking services through effective use of technology will be essential
for banks to attract and retain profitable customers. Federal Bank believes that
technology enables banks to have better centralized control systems. Finacle core
banking solution has positively impacted Federal Bank’s customers and staff. Some
of the key benefits are highlighted below:
CBS pilot implementation target of 16 branches by March 2007 was achieved
in February 2007, well ahead of schedule
Phase by phase CBS migration was successful. Currently all branches have
been migrated and are running on Finacle. Entire bank’s migration was
achieved in a record speed of less than a year
Bank has been able to translate a substantial number of general customers to
regular and frequent customers
Federal Bank conducted a customer survey and around 60% of customer have
noticed a marked improvement in the usefulness and convenience of the
features of the new banking system
Improved 24/7 availability - 99% uptime
Apart from acting as a tool for customer accretion, features and
functionalities in Finacle helped to generate revenues by reducing transaction
cost, increased speed and reduction of dependencies and thereby providing
comfort to the customers in the arena of banking transactions and allied
services
Disaster Recovery Setup (DR) became operational offering all the facilities
according to international standards (Level 3+). DC/DP switching was
performed smoothly without any branch activity being affected
Realignment of business processes with industry best practices which was
achieved by adopting Finacle; this also resulted in reduced support &
maintenance costs
Consolidated MIS is now available as per requirements on a daily basis.
Consolidation was earlier done monthly and trade finance business reports
excluded from consolidation
Highly parameterized product definition functionality permitting bank to
introduce products in minimum time
The bank has already launched:
Complete straight through cash management system which handles entire
clearing and collection requirements of branch (Complete web-based J2EE
solution developed in house)
Online account opening and loan processing. (Complete web based (J2EE)
solution developed in house )
Products in pipe line expected to be launched soon
Savings account (4 Categories) current account (4 Categories)
Online share trading
Straight Through Processing of foreign remittance
Mobile commerce
The bank expects to increase the number of customers to 4.6 million with the
help of technology in the next 12 months without increasing any staff
resources
Centralized bank functions - The performance of the bank will improve in all
spheres of activities; some of the advantages the bank have been able to reap
by implementing a centralized solution like Finacle are:
Reduced time to launch and time to market for various products - the
availability of the product is simultaneous at all its branches
Also interest rate changes, daily exchange rates etc. can be centrally
administered. Branches will act as service outlets and cater to the needs of
the customers
Most back office jobs like account opening, issue of cheque books, customer
letters, clearing etc are centralized at a Central Processing Centre. Once field
level functionaries are relieved from such drudgeries, they can concentrate on
business development, resource mobilization, recovery etc.
MIS is available centrally. Hitherto the administrative offices sought various
reports from the branches. With the data residing at a central point, any
report can be generated centrally
With data hosted centrally, various sophisticated software for data
warehousing and data mining can help the bank in implementing a decision
support system to aid the bank in arriving at decisions in Asset Liability
Management or monitoring compliance with regulatory requirements
With CRM module in place, it is easy to segment customers and products can
be designed to suit each segment of clients
All channels like AWB, FedFast , FedNet Bill Pay online bill realization, Mobile
Alert, and Email Alert were successfully integrated with Finacle enabling the
bank to continue to offer the unique services available in FedSoft. Even during
the transition period, entire channel service was offered to customers without
any interruption
Transition period did not pose any hurdles to the expansion strategies of
Federal Bank including ATM expansion to 447 numbers. During migration
period nearly 100 new ATM’s were opened
New wing “Central Processing Centre” (CPC) has been set up and is fully
functional. Nearly 25000 loan and 38000- account opening and modifications
were processed through the system during this short span
Development of complete MIS system was based on Finacle data.
CONCLUSION
The technology has opened up new markets, new products, and new services and
efficient delivery channels for the banking industry. Online electronics banking,
mobile banking and internet banking are just a few examples. Information
technology has been the cornerstone of recent financial sector reforms aimed at
increasing the speed and reliability of financial operations and of initiatives to
strengthen the banking sector. MIS provides vital information at the right amount, in
the right time. It has set the stage for unprecedented increase in financial activity
across the globe.
MIS makes the tremendous changes in banking sector. Banks provides lot of services
to its customers with the help of the MIS. It enhances speed, reliability, global access
and reduce burden of paper. By using Finacle core banking solution reduce man
power in banking and effectively addresses their strategic and needed flexibility to
adapt to dynamic environment.
REFERENCE
1. Management information system- Gordon B Davis & Margrethe H Olson.
2. www.federalbank.co.in
3. Booklets and broachers of the federal bank.
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