MIS - Standard Chartered Bank Pakistan

INFORMATION SYSTEM STUDY REPORT OF

STANDARD CHARTERED BANK

FOR THE SUBJECT

MANAGEMENT INFORMATION SYSTEMS (HS-107)

G R O U P M E M B E R S

SR.# NAME ROLL NUMBER 1 A R S A L A N A T A K H A N 2 0 0 9 - C E - 1 2 4

2 M U H A M M A D U M E R 2 0 0 9 - C E - 1 3 7

S U B M I T T E D T O

M U Z A M M I L A H M A D K H A N

A S S I S T A N T P R O F E S S O R

C O M P U T E R E N G I N E E R I N G D E P A R T M E N T

C O M P U T E R E N G I N E E R I N G D E P A R T M E N T

S I R S Y E D U N I V E R S I T Y O F E N G I N E E R I N G A N D T E C H N O L O G Y

K A R A C H I

Standard Chartered Bank (Pakistan) Limited

Sir Syed University Of Engineering & Technology, Karachi. 2

Acknowledgment

First of all, we are thankful to Almighty ALLAH (The most Gracious and the most Powerful, the

knower of seen and unseen), for giving us courage and power to learn and to apply our knowledge

for the benefits of mankind.

We would like to express profound gratitude to our advisor, Mr. Muzammil Ahmed Khan and Mr.

Muhammad Kashif Shaikh, for his invaluable support, encouragement, supervision and useful

suggestions throughout this project work. His moral support and continuous guidance enabled us to

complete our work successfully and patiently guided us in this project and never accepting less than

our best efforts.

We would also like to show our gratitude to all the staff members of Standard Chartered bank of

Pakistan especially Mr. Abdul Azeem Qureshi and Mr. Aamir Saleem who devoted us their precious

time to accomplish this task.

At last but not the least, we would like to thank our family, for their consistent support and faith

which enables us to complete this project.



TABLE OF CONTENT

S.NO T ITLE OF HEADING PAGE NO

1. Introduction 4

2. Organization Introduction 5

3. Main Business Function of the Organization 8

4. Information System in Standard Chartered Bank 10

5. Other Departments in Standard Chartered Bank 11

6. Main Business Function of IT Department 13

7. Electronic Basic Banking System (EBBS) 16

8. Electronic Card Processing System (ECAP) 17

9. Networks in Standard Chartered Bank 18

10. Data Flow Diagram of Main Function 20

11. Suggestions for Improvement in the Organization 22

12. Conclusion 23

13. Gantt Chart of the Project

Appendices

Minutes of Meeting

Questionnaire



Introduction

Information is the basis for every decision taken in an organization. The efficiency of management

depends upon the availability of regular and relevant information. Thus it is essential that an

effective and efficient reporting system be developed as part of accounting system.

The main object of management information is to obtain the required information about the operating

results of an organization regularly in order to use them for future planning and control. The old

techniques like intuition, rule of thumb, personal whim and prestige, etc. Are now considered useless

in the process of decision taking. Modern management is constantly on look out for such quantitative

and such information, which can help in analyzing the proposed alternative actions and choosing one

as its decision.

Thus, modern management functions are information-oriented more popularly known as

“management by information”. And the system through which information is communicated to the

management is known as “management information system (MIS)”

.



Introduction of Standard Chartered Bank

Introduction:

Standard Chartered has a history of over 150 years in banking and operates in many of the world's

fastest-growing markets with an extensive global network of over 1,600 branches (including

subsidiaries, associates and joint ventures) in over 70 countries in the Asia Pacific Region, South

Asia, the Middle East, Africa, the United Kingdom and the Americas.

As one of the world's most international banks, Standard Chartered employs 70,000 people,

representing over 125 nationalities, worldwide. This diversity lies at the heart of the Bank's values

and supports the Bank's growth as the world increasingly becomes one market.

With strong organic growth supported by strategic alliances and acquisitions and driven by its

strengths in the balance and diversity of its business, products, geography and people, Standard

Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East.

Standard Chartered derives over 90 per cent of profits from Asia, Africa and the Middle East.

Serving both Consumer and Wholesale Banking customers worldwide, the Bank combines deep

local knowledge with global capability to offer a wide range of innovative products and services as

well as award-winning solutions.

Standard Chartered is also committed to all its stakeholders by living its values in its approach

towards managing its people, exceeding expectations of its customers, making a difference in

communities and working with regulators.



History of Standard Chartered Bank:

Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of

British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China,

founded in 1853.

The Chartered bank:

The Chartered bank was founded by James Wilson

following the grant of a Royal Charter by Queen

Victoria in 1853. Chartered bank opened its first

branches in Mumbai (Bombay), Kolkata and

Shanghai in 1858, followed by Hong Kong and

Singapore in 1859.

The Standard bank:

The Standard bank was founded in the Cape

Province of South Africa in 1862 by John Paterson.

The bank commenced business in Port Elizabeth, in

January 1863.

Standard Chartered Bank in Pakistan:

Standard Chartered Bank (Pakistan) Limited is Pakistan's oldest and largest foreign bank with over

176 branches in the country. The history of Standard Chartered in Pakistan dates back to 1863, when

the Chartered Bank of India, Australia and China first established its operations in Karachi.

`The year 2006 marked the beginning of a major transformation for Standard Chartered’s operations

in Pakistan. It was during this year that the Bank announced its acquisition of Union Bank, one of the

best private sector banks in Pakistan.

The US$ 487 million, the largest ever transaction in Pakistan’s banking history, spearheaded the

establishment of Standard Chartered Bank (Pakistan) Limited (SCBP), the first international bank in

http://en.wikipedia.org/wiki/1863

http://en.wikipedia.org/wiki/Chartered_Bank_of_India%2C_Australia_and_China

http://en.wikipedia.org/wiki/Karachi



Pakistan to be locally incorporated. The acquisition effectively cemented our position as the largest

and fasted growing international bank in Pakistan: Standard Chartered is now the 5th

largest bank in

terms of revenue and operating profit.

In early 2007, the combined bank had 115 branches across 22 cities in Pakistan. A year later, by mid

2008, the bank has 176 branches across 41 cities. Our geographic footprint growth has led the Bank

in becoming a part of the social and economic fabric of the country, positioning us to deliver on our

vision of “Being the best locally embedded international bank”.

The bank now has over 176 branches across over 41 cities of Pakistan.



Services Offered by Standard Chartered

Consumer Banking

Standard Charted provides services for

Mortgages

Credit Cards

Personal Loans

Auto Loans

Islamic Banking

Wealth Management products.

In order to maximize customer convenience, they offer

24-hour Phone Banking

eStatements



SMS Banking

ATM Cards and VISA Debit Cards

Online Banking

Wholesale Banking:

Wholesale banking provides

Transactional banking

Debt Capital Markets

Corporate Finance

Derivatives & Fx Options

Commodity Finance and deposit products.

Treasury

Islamic Banking:

Standard Chartered Saadiq's dedicated Islamic Banking team provides comprehensive

international banking services and a wide range of Shariah compliant financial products that are

based on Islamic values

SME Banking:

Standard Chartered Small Medium Enterprise banking provides services for Small to medium

size companies to expand their enterprise.

Tijarat Accounts

Business Installment Loans

Industry Specific Solutions



Information System in Standard Chartered

As Standard Chartered started their business in Pakistan in 2006, so they are using information

system since the start of their business in Pakistan, there were no PRE-IS era of Standard Chartered

bank in Pakistan. At the time of acquisition of Union Bank of Pakistan, the Union bank was using

their own core banking solution which was then got shifted under one system. The actual conversion

happened on 17th

September 2006, when Standard Chartered cut over the Union Bank systems.

With the help of information technology Standard Chartered bank record the daily transactions that

took place from all over the Pakistan into a centralized database in real time which means there is no

Batch processing is taking place in Standard Charted all over the Pakistan. Every bank branch is an

online branch which is directly connected to the centralized server to keep the data up to date to

avoid any problems.

As Time is money, and due to IS standard chartered bank make thousands of transactions per day. In

fact, IS makes whole process much more quick, simple and reliable. Due to IS employees can easily

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

others benefits.

Standard Chartered Online is an innovative Online Banking service that you can tailor to suit your

precise banking needs. It gives you convenient, round-the-clock banking services ranging from day-

to-day account transfer transactions to real-time valuable financial information. Now you can

manage your finances anytime, anywhere.



DESCRIPTION OF DEPARTMENTS

BUSINESS INTELLIGENCE UNIT (BIU):

The business intelligence unit (BIU) department provides valuable information to the bank regarding

to the new products. BIU gives detailed analysis of any product data provided by Information

technology department.

LEGAL & COMPLIANCE:

The legal and compliance department is playing a very important role in this organization. The

department is responsible for all the legal work of the bank. They have to make sure whether

everything is going according to the government policies and whether or not the organization is

following all the rules of STATE BANK OF PAKISTAN.



CREDIT AND COLLECTIONS:

The department is very vital in its functionality. That’s the reason why Standard Chartered pays so

much importance to it. The department performs several important functions for the organization.

Some of them are

Loans Sanction

Loans Recovery & Collection

PHONE BANKING:

Another consumer banking department which is solely responsible for phone banking issues and at

the same time they have to make sure the user is having the same level of personalized services that

would expect in branches.

COMPLAINT MANAGEMENT:

Complaint management department is responsible for complaints received from customer via Phone,

Email, Web and providing them support on timely manners.

FINANCE DEPARTMENT:

The department is very vital in its functionality. That’s the reason why Standard Chartered pays so

much importance to it. The department performs several important functions for the organization.

Some of them are

Financial Forecasting

Capital Budgeting

Credit Management



IT IN STANDARD CHARTERED BANK

As IT is playing a vital role in this organization, the bank has state of the art IT infrastructure which

is working 24/7 to ensure that everything is running smoothly and the bank systems are not exposed

to the outside world. IT Department itself is a huge department in Standard Charted bank, having

many sub departments under its area. The IT department provides services, support to other

departments as well as also acting as a backbone of the Core banking system of Standard Chartered

Bank. In broader terms the IT department is in charge of

All Communications throughout the branches & data center’s, which includes Voice,

Data, Fax, Wireless mediums.

Monitoring the service’s of existing applications running inside the organization.

Monitoring of Critical applications which need 99% uptime.

Providing service to on production applications

Network’s and other connectivity mediums

Security of existing & new applications

Security of networks

In-house security issue’s



HIERARCHY OF IT DEPARTMENT

NETWORKS & COMMUNICATIONS:

The department is responsible for managing all the network and communication that took place

inside the bank which includes Internet, Intranet, Extranet, Voice, Fax services. The core

responsibilities of this department is

Managing existing data network.

Managing the voice network.

Managing the Fax network.

SERVICE MANAGEMENT:

The department is responsible for providing services to the new as well as existing applications

running inside the organization. The department is also responsible for monitoring the application

uptime and providing maximum uptime to the critical applications to avoid any financial & service

loss and assigning the privileges to the employees.



SECURITY & RISK:

The department is responsible for all the security issues that could happen in the existing system

which includes Internet Banking securities, network securities, external & local access etc.

TECHNICAL SUPPORT SERVICES:

The department is responsible for all the hardware’s that are placed inside the organization; they

provide support and services to any kind of hardware issues from a single desktop pc to their servers.

BANKING SOFTWARE’S

Standard Charted has more than 80 different business software’s running to fulfill their business

needs. Each software is specifically designed for a specific department and intended to perform some

specific task in order to help the bank run their everyday business process effectively. Some

software’s are cross functional helping different departments.



EBBS (ELECTRONIC BASIC BANKING SYSTEM)

Core banking is the heart of any organization, Standard chartered core banking application is “EBBS

(Electronic Basic Banking System)” which is the actual strength of this bank. EBBS is the single

software suit that work on these basic modules

Saving / Current Accounts

Customer Information System

New Accounts

Demand Deposits

Clearings

Time Deposits

Loans

Credit Lines

Automatic Transfers

Tax Information

On-Line Transactions

Authorizer

Cashier’s Checks

Construction Loans

Sensitive Accounts

Warnings



ECAP (ELECTRONIC CARD PROCESSING SYSTEM)

Another core banking application that Standard Chartered is using is “ECAP (Electronic Card

Processing System)” which is used to manage all the Credit and Debit Cards of the account holders.

The software has these two basic modules

Debit Card

Credit Card

SERVERS OF STANDARD CHARTED BANK

Standard Chartered has a centralized server machines

running day and night to ensure the maximum uptime

and top notch quality to their applications which

dramatically support their whole business process.

The bank servers resides in different cities and data

center’s of Pakistan i.e. Karachi, Lahore, Islamabad and

all of them are interconnected with each other for real

time data update and synchronization.

As a rule stated by STATE BANK OF PAKISTAN; “A bank must have 3 years of customer data in

their servers.” To abide this rule, Standard Chartered stores the last 3+ years of data into their local

sever which are residing in Pakistani’s data centers for quick access of data and other issues.

The bank archives the old data to their Main Server in Chennai, India which is the main server for

Middle East region. The Chennai server’s holds the archived data of all the Standard Chartered

branches in Middle East region and when any branch need to access the old data; they connect to the

Chennai servers and download the required data.

Standard Chartered is using IBM servers in Pakistan. The configuration of server depends upon the

load of work it handles and the application which is running on the server. If the application is

critical then the server is also of high configuration.



NETWORKS IN STANDARD CHARTED BANK

Networking is the milestone achieved by Standard Chartered bank which gives the integration

between information systems of various departments. Standard Chartered is using CISCO networks

to maximize the outcome and to enhance the communication quality within their organization which

results in the better service. Standard Chartered has different types of network configuration for

different scenarios; some of them are discussed below.

LOCAL AREA NETWORK (LAN)

The local area network (LAN) is running inside the organization and providing ultimate connectivity

between the employees and other persons. There are some Workgroup applications also running over

their LAN for easy collaboration between the employees of same and different departments. The

LAN is not exposed to the outside world for security reasons and there is a proxy server running for

connectivity outside the organization which makes sure the internal network is not exposed to the

internet.



NETWORK BETWEEN DATA CENTER’S

As Standard Chartered has different servers located at different areas of Pakistan, so the networking

between them is necessary. Each data center is directly connected to another data center using two

links (i.e. Radio & Optical Fiber) because if one link goes down, there is a second one to give backup

link, If a wired is cut off then the radio link is available for connectivity and if there is a frequency

block in radio link, there is a wired link to give backup to the network.

Each branch has two links, one is DXX which is connected to the nearest data center and another

link is VSAT which is connected to the second nearest data center to make sure branch keep working

if there is a problem occur in any one of the data centers.



DATA FLOW DIAGRAMS (DFD)

CONTEXT DIAGRAM OF ATM MACHINE:



CONTEXT DIAGRAM LEVEL 0 OF ATM MACHINE:



WEAKNESS IN EXISTING SYSTEM

Standard Chartered existing information technology system is fulfilling all of their need without any

error, and the network terminologies they implemented is serving excellent in terms of quality and

security.

The weakness in their existing system is that they stores only the last 3 years of customer data into

their local server to follow the STATE BANK OF PAKISTAN law. But in some cases they have to

retrieve the old data from their Chennai, India server, which cost them money for downloading as

well as uploading.

SUGGESTIONS & RECOMMENDATIONS:

Standard Chartered bank should store all of the customer data into its local servers for faster access

to the old data and to save the money they spent in order to download the archived data from the

Chennai server.



CONCLUSION

This report is complete implementation of our course study. After our visit to multinational

organization, we came to know how these organization works in order to maintain their standard and

market share in the industry. We also came to know the different industrial standards that an

organization has to follow in order become agile. This report helped us in clearly understanding the

complex business logics as well as the impact of short and long term strategies.

The report also gives us practical exposure to some state of the art IT infrastructure like

redundant networks etc and their impact on day to day business. The project helped us in developing

interpersonal skills, awareness of work environment in organization and the role of Information

system in organizations.



QUESTIONNAIRE

1. Hierarchy of the Standard Chartered Bank?

2. What are the different departments currently working in Standard Chartered Bank & what are

their role & activities?

3. Hierarchy of Different Departments?

4. Main Business function of Standard Chartered Bank (Banking, Loans, Stock markets,

ATM’S, Online Banking, Mobile Banking)

5. What is the Role of IT Department throughout the Organization?

6. How do you manage such a huge amount of data?

7. Is there any Centralized Database. Which SQL Server you are using?

8. When and where Batch Processing took place in Standard Chartered Bank?

9. What kind of networks and other communication terminologies you use to interconnect all of

your branches worldwide.

10. Which security terminologies you implemented in order to secure your system?

11. How often do you backup you data.

12. Backup for Emergency?

13. Still how much work is done manually in Standard Chartered Bank?

14. Do you follow any SDLC?

15. What kind of Hardware Server’s you have to fulfill your needs.

MIS - Standard Chartered Bank Pakistan

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