Management Information System of Allied Bank

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Project of Management Information System Supervisor: M. Amir Ghafoor

By: Malik Saad Noman 2649-FMS/BBA/F09 Umar Farooq 2671-FMS/BBA/F09

FMS-BBA (20) A

international islamic University,

islamabad

2011

Company Allied Bank Limited

12/14/2011

Generated by Foxit PDF Creator © Foxit Softwarehttp://www.foxitsoftware.com For evaluation only.

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ACKNOWLEDGEMENT

All Praises to ALLAH Almighty, WHO guided us throughout this project and helped us in making it possible successfully.

We are very much thankful to our Respected Teacher Mr. Amir Ghafoor

Who gave us direction and directed us in the completion of the project.


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Contents

Sr. no Topics Page

1 Introduction of Management Information System 4

2 Introduction of Bank 4

3 Vision 4

4 Mission 4

5 Core Values 4

6 Company History 4

7 Reason for selecting Allied Bank 5

8 Services Offered by Allied Bank Limited 5

9 Information System in Allied Bank Limited 6

10 Old Management Information System in Allied Bank 6

11 Benefits of UNI Banking System 6

12 Draw backs of UNI Banking System 6

13 Present Information System in Allied bank 6

14 Management Overview 7

15 Management Information System 7

16 Organizational transaction processing system in T24 8

17 Payroll Transaction Process System: 8

18 New Customer Identification 8

19 Employee’s Record 9

20 Real time Banking 10

21 Automated Teller Machine Card (ATM Card) 11

22 Management Information System after TPS 11

23 Diagram of TPS and MIS 12

24 T24 Information System in Allied Bank 13

25 Benefits of TEMINOS Information System 13

26 Drawbacks of T24 13

27 Conclusion 13


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Introduction of Management Information System For decision making, every organization needs information. Regular and relevant information are necessary for the efficiency of an organization. For that it is essential that an effective and efficient reporting system be developed as part of accounting system. Management information system collects and obtains regularly required information about the operating results of an organization in order to use them for future planning and control. Now a day, all old techniques (e.g) intuition and rule of thumb etc are useless. Now modern management is constantly look out for such information which can help in analyzing the proposed alternative actions. There for modern management functions are information oriented which is known as management by information and that system through which information is communicated is “Management Information System”.

Introduction of Bank

Allied Bank Limited was the first bank, established in Pakistan. Before independence in 1942 it started out in Lahore, the name of bank was Australasia Bank; in 1974 it was renamed to Allied Bank of Pakistan Limited and later on Allied Bank Limited in 2005.

In August 2004, the Bank’s ownership was transferred to an Ibrahim Leasing Limited and Ibrahim Group because of capital reconstruction.

Today, with its existence of over 60 years, the Bank has built itself a foundation with a strong equity, assets and deposit base. It offers universal banking services, while placing major emphasis on retail banking. The Bank also has the largest network of over 800 online branches in Pakistan and offers various technology based products and services to its diverse clientele. Vision To become a dynamic and efficient bank providing integrated solutions in order to be the first choice bank for the customers. Mission

To provide value added services to our customers To provide high tech innovative solutions to meet customers' requirements To create sustainable value through growth, efficiency and diversity for all stakeholders To provide a challenging work environment and reward dedicated team members according to

their abilities and performance To play a proactive role in contributing towards the society

Core Values

Integrity Excellence in Service High Performance Innovation and Growth

Company History:

Under the Chairmanship of Khawaja Bashir Bux bank was esblished in December 1942 as the

Australasia Bank at Lahore with a paid-up share capital of Paki Rs.0.12 million, and his business associates, including Abdul Rahman Malik who was amongst the original Board of Directors, the bank had attracted deposits, equivalent to PKR 0.431 million in its first eighteen months of business. Total


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assets then amounted to PKR 0.572 million. Today Allied Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposit exceeded Rs. 143 billion and total assets equal Rs. 170 billion. Reason for selecting Allied Bank:

Reason of selecting Allied Bank is that, it is one of the leading bank in Pakistan with international

standards and which keeps on innovating and secondly because we have a reference in this organization which help us in extracting the required information in this project more easily and without much difficulty.

Services Offered by Allied Bank Limited

Personal Banking Services

Forex Services

Demate Services

Cards

Insurance

Gold Banking

Mutual FundsCorporate

Banking Services

Project finance

Corporate Accounts Groups

Merchant Banking

Business Banking Services

Cash management

Trade services

Transaction banking

Investment banking

Custodial services

Online Services

SME Banking Services

Other Services

Locker facility

Demand drafts

e-Tax

e-Freight

Public provident

fund

Centralized pension

processing

Travelers cheques

Money transfer


Information System in Allied Bank Limited Allied Bank Limited is using information system since 2005-2006. Previously they was using core banking solution UNION BANKING SYSTEM (UNI), and almost about one year ago bank starts another banking solution named TEMENOS (T24). Old Management Information System in Allied Bank Previously management information system which allied bank used was UNI BANKING SYSTEM. Language of that information system was UNIX, and in banking terminology this language was called COBAL. This information system was MS DOS biased. With the help of this information technology allied bank record the daily transactions that was of only one branch. It was decentralized database. Decentralized means all transactions and processes are record in one place. All daily transactions were recorded and saved into one server; every branch of allied bank had its own server which was not linked to any other branch of allied bank. This information system was only being operated on LINUX OPERATING SYSTEM. Benefits of UNI Banking System:

Easy to use: It was easy to use because people are expert they were using this operating system from many years. It was most familiar to operators because it was user friendly and also not complicated.

Safety: This operating system was safe because its programming (coding) was very difficult, that’s why hackers can’t hack information from this operating system. This information system was can only used on LINUX operating system for that it was free of virus, so data was very safe.

Low cost: This system was low cost, because LINUX operating system was almost free of cost and easily available.

Draw backs of UNI Banking System:

Problem in system: It was logical error, means missing numeric values; this operating system was full of problem in online system. Sometimes during online working it was missing transactions and banker had no knowledge of that missing transaction.

Decentralized: It was decentralized database system not centralized; mean had not relation with other branches.

Difficult installation: This information system was difficult to install, because it can only operated on LINUX.

Difficult in troubleshoot: When ever there was a problem in “line code”, then it cannot be resolved by any one. For solution of that problem, bank always called to special application developer from head office.

DOS biased: DOS is only biased on commands, and this operating system was DOS biased. So it was difficult to operate.

Present Information System in Allied bank: Almost one year ago Allied Bank replaces UNI BANKING to TEMENOSE (T24). T24 is the latest information system which is now a day mandatory from State Bank of Pakistan for every new bank. With the help of new information technology Allied Bank Limited records the daily transactions, and that took place from all over the Pakistan into a centralized database in real time and now there is no batch processing is taking place in Allied Bank all over the Pakistan. Every bank branch is an online branch and is directly connected to the centralized server to keep the data up to date to avoid any problems.


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Now information system of Allied Bank makes thousands of transactions per day. And this

information system makes whole process more quick, reliable and simple. And employees can easily

connect with other branches; customer service gets improved, online banking emerged and lot of other

benefits.

Now a day Allied Direct Internet Banking is an innovative online banking service. Allied Direct

Internet Banking offers you good policy to manage and control your banking and finances (when you

want to, where you want to. Now it’s Simple & Convenient, Secure and Faster. So, just get clicking.)

MANGEMENT OVERVIEW

Management Information System:

Through TPS all routine information are collected in Allied Bank. All details of TPS’s HUBs go

into Management Information System. This information is then summarized in the form of

reports for the manager so that they can check whether the firm is working properly or not. If there

are some flaws then they take control measures to fix those flaws. In one branch all daily transactions are

recorded and all reports are prepared on daily basis. TEMINOS generate daily information report at the

end of the day.

CEO

Exactive Directores

Regional Managers

Branch Managers

Branch Managers

Regional Managers

Branch Managers

Branch Managers

Regional Managers

Branch Managers

Branch Managers


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Organizational transaction processing system in T24:

TPS is a type of information system. It collects, store, modify, and save the transactions of

organization. One transaction is an event that generates and modifies data that is eventually stored in

information system. TPS monitors transaction programs. Basic purpose of TPS program is that must be

left in a consistent state. TPS that Allied Bank is using is effective, that system’s process is fast and

rapidly, to ensure the smooth flow of data and the progression of processes.

Payroll Transaction Process System:

TPS in Allied Bank is for to get information and record of the employee payroll and calculate

his/her annual earning. It get information about the employee from the employee’s department and also

from general ledger and send it to payroll TPS. From where it links that information with the previous

record and prepare a report which is forwarded to management. Management takes notice of the record of

the employee’s efficiency to work and may declare bonus or incentive or demote him/her. This report is

checked and approved by the branch manager after which check is issued to the employee. And at the

time of salary or any incentive or benefits, when that check is cashed, the record is update in the general

ledger as well as the master payroll (HUB).

New Customer Identification: Allied bank is using TEMENOS banking system which is connected to NADRA. Bank’s information system automatically verifies customer’s ID number, address, income, and city name. Which helps the management to identify whether he/she is using his original ID card or not. Whenever new customer come for open an account customer fill and form named “KYC”, abbreviation of KNOW YOUR CUSTOMER. Operational manager enter all date of that form into system which contains actual worth and expectations of deposit and after that manger enter his/her comment which he/she knows personally about that customer. “Customer due diligence” named report related to that customer goes to

Pay Roll

TPS

General Ledger

Cheque issued

by Manager

Check passed by

manager Management

reports General Ledger

Employee Data

Payroll

Master files

Hub


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Head office and State bank also have access to that customer, through which State Bank knows the credit history of that customer.

Employee’s Record:

All employees having their personal login ID’s which allotted at the time of employment and they

are supposed to login when they enter the bank and logout on leaving. Their accounts are also connected

with the HUB which continuously makes record of their hours spent in the bank. Moreover, the bank has

their own setup which makes records of all the transactions made by an employee. All these help

management to monitor the working efficiency of an employee. Through this information system

management also have record of, how many customers served by whom employee. And they also have

information through this system that how many customers convinced to open an account by whom.

State Bank of Pakistan

Head office of Allied Bank

Branch of Allied Bank

Customer’s

Data

TEMENOS

HUB

NADRA Management


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Real time Banking:

When a customer withdraws a sum of money from his or her account the transactions are

processed and the account balance updated as soon as possible, allowing both the bank and customer to

keep track of funds. When a customer goes to bank for withdraw or deposit the cash through cheque or

cash then there are certain steps. We will just describe withdraw transaction. First step on the time of

withdraw through cheque is, first cashier made entry of that cheque into information system (put cheque

number, name of a/c holder) and then cheque is scanned into FLATBED PRINTER. And after that

information system configure instrument number, amount in words & digits, and signature etc. If entered

and scanned information will be same then system will proceed to next step. If transaction is of less than

Rs.25, 000 then it needs the verification of just one person. And if cheque is of more than Rs.25, 000 then

it needs the supervision of two supervisors. In case of more than twenty five thousand rupees’ transaction,

system of Allied Bank generates one “supervision code”. One person made transaction and second

supervises. And after configuration transaction is done. TEMENOS system of Allied Bank shows option

of debit and credit at the time of transaction. And when transaction is made then the new transaction is

send to Lane. Date and time of transaction automatically entered when ever transaction made. The Lane

enters the HUB where the specified file is accessed. The updates are made entered there and finally the

adjustment is done.

Employee

login

Employee

job logout

HUB

TEMINOS

New

transac

tion

update

Update

previou

s date

HUB

LANE


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Automated Teller Machine Card (ATM Card):

Through ATM card customer can withdraw of cash easily. At the time of apply he/she give bio

data, income summary, company name, NIC. That data (NIC no. and bio data) send to system TEMINOS

which directly linked to NADRA. If information correct then it is forward to customer service centre and

the issue of credit card.

Management Information System after TPS:

Through TPS all routine information are collected in Allied Bank. All details of TPS’s HUBs go

into Management Information System. This information is then summarized in the form of

reports for the manager so that they can check whether the firm is working properly or not. If there

are some flaws then they take control measures to fix those flaws. In one branch all daily transactions are

recorded and all reports are prepared on daily basis. TEMINOS generate daily information report at the

end of the day.

Customer

service TPS

Applicant

Account

details

Identification

ATM Issues

NADRA

HUB

New account

opened


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Diagram of TPS and MIS

Managers

MIS Files

Payroll Transaction

New Customer

Identification

Employee’s Record

Real time Banking

ATM Card

Payroll

file HUB

Real

time

banking

file

Employe

es’ file

HUB

New

customer

’s file

HUB

ATM

Cards

HUB

ATM

cards TPS

Real time

Banking

TPS

Employees

’ record

TPS

New

customer

Identificatio

n TPS

Payroll

TPS

MIS Reports

Transactional Process System Management Information System


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T24 Information System in Allied Bank: New management information system, of Allied bank is TEMINOS (T24). In banking language it is called T24. This information system is recommended by State Bank Pakistan, it is easy to use and operate. Trainings of Allied Bank are also held on computers. ABL has one training institute in Lahore. The bank provides on the job training facilities to employees through job rotation to in different department as per requirement training more emphasis is in practical.

Benefits of TEMINOS Information System:

User friendly: It is easy to use. This Information System run on windows operating system and graphics of this system also works like windows. As compare to UNI Banking System, UNI banking has just black graphics and contains on command system.

Web page: Through registered ID, employee of the bank work online that is easily accessible for manager, immediate boss and head office.

Security: Data of bank is secure in this information system. Easy to install: This information system is easy to install as compare to UNI Banking system.

Bank install this IS through web. And if there is any problem in system then it can resolve through web.

Centralized: This information is centralized so transactions are recorded on daily basis. And head office has record of each branch.

Drawbacks of T24:

Cost: T24 is expensive as compare to UNI banking. Centralized: If performance of one branch is not good then it has effect on other all performance. Security: Security of T24 is less then UNI Banking, because it is easy to hack. So data is unsecure

in T24 Transaction missing Chances: After migrating on TEMINOS T24, Allied bank is still using

manual system because there are some problems (regarding missing Transactions). Communication: Communication between employee and boss through this Information System is

possible just within the branch. That is E-mail service. Messenger service is not available in this system.

Conclusion:

A management information system is a system or a process that provides the information necessary to manage an organization effectively. This report discus, all the activities that the Management Information System performs in our selected organization “Allied Bank limited”. The report starts with the background history of the bank such as when it establishes in Pakistan, the branches, pre and post era etc. Our conclusion is that, how the transactions of TPS are made by the Allied Bank Limited, using

of these TPS from the new events such as account opening, new allowances etc and routine work

including cash and payments record, updating of records, and payroll. These TPS holds all the activities

from the manager and employees to the customers. The report discuses the inbound and the outbound

logistics and relate all the processes of TPS used in the bank with the MIS, enabling the bank to provide

the quality and satisfactory services to their customers. Also includes the inter relations, of all the entities

in the database of the bank.


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Management Information System of Allied Bank

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