Emirates Bank Int.Ltd: IT Management Report [MBA]
Emirates Bank International Ltd: IT Management Report [MBA]
This is an era of information technology, which thrives, on the speedy processing of data through various wireless/telecommunications means. Information Technology infra structure and related rules and regulations are being developed at an accelerated pace in Pakistan as well. The government has also shown clear indications and has offered various incentives in this perspective.
For decades banks have reaped many benefits from the use of the computers, but the system of yesteryears are no longer adequate. In-fact the prime use of the computers was the ease of calculations and recording of enormous amount of data, which took the form of automated book keeping, later on shaping in to modern account keeping procedures and techniques. Many transitions have occurred since that period and the usage of computers has progressed to engulf the entire banking sector not to mention the entire social setup.
Information technology is no more limited to book keeping or accounting in the banks rather it has taken over the entire communication, management, all sorts of transactions and other daily chores. The existence of information technology department has become imperative for the banking sector involving substantial portion of human resource. It would be appropriate to consider the information technology department as the backbone of the entire sector, which is evident in shape of on-line banking.
Emirates Bank International is a subsidiary of Emirates Group of UAE. It is one of the major foreign banks operating ten branches in Pakistan. It has a full fledged I T department which caters for their entire needs starting from software packages of word processing and accounting systems to connectivity/hardware and online ATMs.
This report focuses into all aspects of the Information Technology department briefly elaborating the set up and places in the organisational chart, the functions and the resources available. The problems and the future plans have also been catered for wherever relevant. Emirates Bank International can correctly be called as a progressive institution based on the modern which can act as a role model for our domestic banking sector.
TABLE OF CONTENTS
|Marking Evaluation Sheet||I|
|Letter Of Acknowledgement||II|
|Letter Of Authorization||III|
|Letter Of Transmittal||IV|
|Emirates Bank-A brief Overview||2|
|Computerised Banking System||3|
|The main modules of EQUATION/3||5|
|Benefits of I.T. to Emirates Bank||18|
Starting from abacus the use of computers has always been the trademark of all trade and business community. Banks being the forerunners in the services segment of the business world are the most significant users of the computers since early ages. In-fact computers with their ability to carry out fast and error free computations, storage ability of enormous amounts of data and finally the presentation of information in desirable fashion are the major inspiration for the banking sector.
Today communication facilities in shape of inter-active connectivity provide the lifeline of any bank with its Information Technology department acting as the nervous system controlling all the functioning. The three major components of IT department at any bank are the hardware facilities and networking system which helps the efficient running of the software packages and the knowledgeable work force which manages the functioning, maintenance and up gradation of the facilities in accordance with the banking requirements.
Emirates Bank International is a modern Bank with a sound footing in the industry. The bank has an established a full-fledged Information Technology department to confront the requirements of twenty-first century’s information age.
EMIRATES BANK – A BRIEF OVERVIEW
EBI Pakistan is basically a Trade Finance Bank. However, it is also involved in Financing Projects both in private and Public Sectors. Government of Dubai has over 80% of share holding.
The Bank’s comprehensive Corporate Banking Services include Trade Finance, Project Finance, Working Capital Finance, Foreign Exchange and Treasury Management, Capital Market Activities and Loan Syndicate for Domestic and Multinational Corporations.
The Bank delivers the widest range of retail products such as Credit, Charge and Smart Card, Drive-in ATMs, Car Finance and Telephone Banking etc.
COMPUTERIZED BANKING SYSTEM
For decades, banks have reaped many benefits from the use of computers, but the systems of yesterday are no longer adequate. On the other hand new applications and new technologies bring new uncertainties and risks.
The dilemma is how to choose a system, which is proven in practice while offering a sound foundation for the years ahead.
Emirates banks banking application system, EQUATION/3 is an economic solution which meets the needs of the Bank not only for today but also for the foreseeable future. EQUATION/3 is the new integrated universal banking system from KAPITI. KAPITI has been providing systems to the banking community since 1975 with over 700 installations in 70 countries. The rich heritage of experience has been distilled into the design of the EQUATION/3.
It combines retail banking, corporate banking and treasury operations within the same system and supports both multi-bank and multi-branch operations.
EQUATION/3 embodies design concept, which reflect the new needs of the banking community. It recognizes the increasingly international nature of banking. Its multi-language currency system is able to handle a full range of international banking requirements. EQUATION/3 is flexible and open and may be used either as complete solution, or in conjunction with other applications. It is a fully integrated system with:
- Retail, corporate banking, treasury and trade finance operations
- Complete standardized system for overseas branches
- International operations server, working alongside existing domestic retail and corporate banking mainframe systems linked to the banks general ledger.
THE MAIN MODULES OF EQUATION/3
The main modules of the system are
- Retail banking
Equation/3 can help you implement a competitive and efficient set of services for individuals and small businesses.
- Customer management
The design of the database allows you to maintain as much information as may be relevant to your dealings with individuals, and to have an overall view of their relationships with the bank. Using the various selection criteria, you can extract detailed marketing information on branches, types of customers, or groups of accounts, or on any combination of these.
- Product management
Equation/3 supports the full range of retail product variation within a centralized accounting, including:
- Current or checking accounts
- Saving accounts
- Demand deposits
- Fixed term deposits
- Loans, overdrafts and mortgages
- Customer documentation
The system is delivered with a number or predefined customer document formats for statements, advises and confirmation.
- Retail advantage
The retail advantage superset contains a number of modules, all of, which augment the standard retail functionary, either by simplifying a complex manual procedure, or by enhancing customer services. A few examples are as follows:
- Retail Deposits
- Cheque Processing
- Corporate banking
With Equation/3, it is relatively easy to build a range of quality corporate banking services, which will satisfy a demanding clientele. Equation/3 supports:
- Commercial lending and deposits
- Trade finance
- Global cash management
- Treasury management services
- Commercial lending
The system provides comprehensive facilities to support the management and control of fixed term and revolving loans, draw downs and repayments.
- Trade finance
Trade finance involves huge volumes of documentation and, without automation, is labor intensive and prone to errors.
Equation/3 windows based trade finance application, trade innovation, including:
- Import and export documentary credits
- Discounted bills
- Inward and outward bills for collection
- Guarantees, indemnities and acceptances
By reducing the volumes manual paper work and providing vital management reports, the system offers increased productivity as well as substantial reduction in operating costs.
Specific features includes:
- Customization of documentation, including customer advice notes, letters, acceptances and collection schedules.
- Automatic collection of fees and charges, and creation of accounting entries and management reports, with details of revenue tracking and reciprocity reporting.
- Automatic generalization and transmission of swift and Telex messages.
- Monitoring of exposures.
- Electronic links Express, which allows customers to excess the trade, finance system directly.
- Global cash management
Corporate clients are becoming increasingly sophisticated in their needs for global cash management. They look for the best rates and demand ever-higher standards of service. Equation/3 help by providing:
- Balance reporting. Information can be extracted and transmitted to lead banks or third party networks.
- Multi currency balance orders, standing orders, and concentration accounts.
- SWIFT and telex interfaces for funds transfer.
- Clearing facilities for volume payments such as payroll processing.
- Treasury management services
The EQUATION/3 treasury management facilities described next can also be used to support dealings on behalf of corporate customers. Specific corporate services can include options contracts and transfers, and cross currency foreign exchange deals.
- Treasury activity
EQUATION/3 manages bank’s activities in the foreign exchange, money market and capital market areas.
EQUATION/3 is designed to streamline front to back office operations, and covers a wide range of instruments, including:
- Spot and outright froward exchange contracts
- Spot/forward and Forward/Forward Swaps
- Term placements and deposits
- Overnight placements and deposits
- Call/notice money
- Issuance and secondary market trading of certificates of deposits
- Secondary market trading of Government debt securities, Euro bonds and most other discount, fixed or floating rate securities.
- Arrange or off balance sheet instruments.
- Back office operations
Equation/3 s data management facilities complement the front office services by simplifying the settlement and reconciliation functions. The automatic addition of standing settlements instructions means that there in no delay in the production of confirmations or swift transfers. Confirmation may be in the counter party’s language, and you can define your own format.
For the treasury operations, accurate an up to date information indispensable
The cashier system brings KAPITI EQUATION facilities into front office by allowing cashiers to record transactions daily onto EQUATION’s database.
The Cashier System provides the link between the KAPITI EQUATION system and the cashier in a branch-serving customer. The cashier and efficiently.
The system offers the following benefits at the front desk.
- Validation of account details
- Available Balance Checking
- Stopped Cheques Validation
- Balance Inquiries
- Adding New customers
- Opening of customer accounts
- Processing of customer Debit and Credit transactions
- Accounts transfers between accounts in different currencies
- Deposit/Withdrawal of cash to / from an account in any currency
- Automatic Exchange and commissions calculations for the trading of foreign currency notes and Traveler’s Cheques
- Automatic control of passbook issuance and updates.
- Automated multi currency cashier cash book
- Reporting of transactions input by teller or by branch
When the cashier enters a transaction, it is verified locally and then sent on to the KAPITI EQUATION system to be verified and applied to the customer’s account. The transaction details are printed and if a passbook account, the passbook can be updated.
All cash movements are recorded so that at end of day, each currency cash drawer’s contents can be verified against the transaction entered in that currency.
EBI is the first Bank to introduce IBM AS/400 in 1991.
Network Set-up (NOS) is AS/400. On AS/400 runs OS/400. The setup is designed keeping the convenience and facility of clients in mind. The cabling of PRO (Pakistan Regional Office) is based on LAN and is done with Unshielded Twisted Pair cable. The EBI has a pro network setup and at various points and through various phases in the working, computers are connected in a star topology. Ethernet is being used.
This configuration grants autonomy of connection amongst individual departments as well as linking to the central host computer, which is the reservoir of all data and the command in chief of all setup.
At present the speed range of intercommunication is 100 Megahertz but measures are being taken to increase it to several Gigahertz, in order to make each operation swifter smoother and speedier.
The Emirates Bank has 10 branches all over Pakistan, as well as others in U.A.E and London. The head station is in Dubai and information of daily transaction is relayed here.
The main station in Pakistan is in Karachi where the regional office on I.I. Chundrigar Road has the satellite .The Clifton branch has a radio link. In all six branches have satellites (very small aperture terminals or VSATS. The remaining branches exchange information through radio links. Altogether there are three links on radio link:
The ATMs of Emirates Bank are connected to IBM and make 24 hour banking a great facility for their customers and clients. The cashier system makes use of token ring with 4 terminals, which is then followed by SDLC.
The ATM system is connected with Dubai:
This WAN is based on Fiber optic cable.
A MasterCard has been developed which can be used on swipe machines at Shopping Malls and Hotels or for purchasing goods and services anywhere.
A Network Operating system of any given setup is a program that runs in conjunction with the operating system and application programs and manages the network.
At Emirates Bank the network operating system in use is AS/400. The IT setup also consists of Windows Network version 8. The Hub or host at the center in the bank is Microsoft Exchange Server or MES.
For interaction of various nodes and devices in different departments of the bank there is a System Architecture Gateway.
The sequence is such that data and information of any banking transaction goes from the desktop, through conversion operations at the S.N.A Gateway and finally reaches the As/400 system in the required form. The system being used is the Microsoft Windows + Switch System, Base 24 software ARCSYS (International Link Card).
The cashier system is on token ring (4 terminals) after which it goes to SDLC.
ON THE INTERNET
In order to facilitate customers and clients and to provide easy access to information, a 24-hour online facility is provided. The hardware interrupts Internet connection in a network to avoid hacking and to prevent unauthorized access to critical data. The e-mail software used is Microsoft Outlook.
People can visit their web-site and view in detail what services, facilities, benefits and profits the bank has to offer as well as obtain useful information regarding how transactions have been simplified and made profitable for their specific business.
Various backup and recovery procedures maintain a security of the transactions. At an independent site, all proceedings of the day and the details of the transactions are stored on backup copies and the originals kept on record.
Software is a general term for a set of instructions that control a computer communication network. A software program is a specific set of instructions that tells a computer how to perform a particular action.
The software programs being used in EBI are:
- The main software being used is a switch system Base 24 software called the
- Signature Database by the name of
This software saves the client’s signature. It daily copies the signatures of all its clients into its database. This ensures that no imposter can cheat by accessing into any another account.
- Statements Archival (DARS: Documents Archival and Retrieval System)
The cashier system is DOS based but it is in the process of being shifted to windows. All clients can be easily served at the front-end computer.
NETWORK OPERATING SOFTWARE
Every computer that runs on a network must have a network operating software that runs in conjunction with the computer’s operating system and manage the network. For AS/ 400 servers the operating software being used is OS/400.
Virus software provides a shield to computer and network systems against sabotage. The virus software being used in EBI is Trend Micro System ver 3.5.
It is software through which email messages can be sent amongst each other. For emailing Microsoft Outlook is being used. Internet connection has been disabled EBI for security purpose except for specialized computers and for specialized purpose.
BENEFITS OF I.T. TO EMIRATES BANK
- Validation of accounts details
- Available Balance checking
- Balance Inquiries
There is a special dial up service facility for corporate customers for inquiry about their average balances
- Adding new customers Opening of customers accounts
EBI is online with all customers world wide
- Processing of customer Debit Credit transactions
- Deposit/Withdrawal of cash to/from an account in any currency
The customers are entitled to withdraw 50,000 daily, which is their withdrawal limit.
The analysis of use of information technology in EBI clearly shows the high level of implementation. In EBI, business transactions occur in a systematic and organized manner, keeping the convenience and facility of clients in mind.
The fact that all companies operate Local Area Network and Wide Area Networks in their organizations show they are at par with their global partners in processing sharing and transmitting of data and information for efficient operational activities.
The software side of the company is strong with safety and security measures taken all along. Efforts are also being taken to upgrade the hardware at various stages and to upgrade the operating system along.
Hence we conclude that EBI has a sound setup of Hardware and Software with an awareness to upgrade it to the latest versions. This has surely benefited the bank in its functions.
REGIONAL OFFICE: I.I CHUNDRIGAR ROAD
|350:+ PENTIUM I, PENTIUM II|
|LAPTOPS||ONLY FOR DEPARTMENT HEADS AND THOSE WHO ARE MOBILE OR TRAVEL A LOT|
|FOR SCANNING SIGNATURES|
|PRINTER||· LASER PRINTERS|
|· LINE PRINTER FOR PRINTING REPORTS|
|MULTIMEDIA|| CD DRIVE ONLY ACCORDING TO JOB TYPE|
REGIONAL OFFICE: I.I CHUNDRIGAR ROAD
|ANTIVIRUS SOFTWARE||Trend Micro System ver 3.5.|