A study on the MIS activities and its roles and importance in a Bank:A Standard Chartered Bank perspective

A study on the MIS activities and its roles and importance in a Bank: A Standard Chartered Bank Perspective

Submitted to:

Homayara Latifa Ahmed

Chairman

IBA Career Center

Prepared by:

Reezwan Ahmed

ZR 82

Batch: BBA 17

Institute of Business Administration

Supervised by:

Mohammad Saif Noman Khan

Assistant Professor

Institute of Business Administration

University of Dhaka

June 30, 2013 Homayara Latifa Ahmed Chairperson, IBA Career Center Institute of Business Administration University of Dhaka Subject: Submission of Internship report on A study on the MIS activities and its roles and importance in a Bank:A Standard Chartered Bank perspective Dear Madam, I would like to submit this report titled A study on the MIS activities and its roles and importance in a Bank: A Standard Chartered Bank perspective prepared as a part of the requirement of my internship at Standard Chartered Bank under the BBA program of Institute of Business Administration, University of Dhaka. I have completed my internship in the Management Information System (MIS) unit under the Cash Management Operations (CMO) department for organization attachment period of 3 months. In this period of time, I have acquired some working knowledge on the MIS activities and also activities of some other units of CMO as well. This report has been prepared under direct supervision of Mr. Mohammad Saif Noman Khan. This report never has been, and never will be reproduced for any other IBA course. I sincerely hope that this report fulfills the objectives and requirements of my internship and that it finds your acceptance. Sincerely,

_________________ Reezwan AhmedZR 82BBA-17 Institute of Business Administration University of Dhaka

Acknowledgement For the successful completion of this report, I would sincerely like to thank Mr. Aparup Barua, Senior Manager, PMI & CAAR, CMO, Standard Chartered Bank for giving me the opportunity to work in the department under his supervision and facilitating me with the support of the department. I would like to thank Mr. Abu Shams Mahmood Arif, Assistant Manager, PMI unit, CMO department for his direct support and his valuable time through the 3 months and also for his direct guidance about the working of MIS unit. I would also like to thank the Cash Management Operations Department as a whole for providing the best of support and guidance during my tenor. Finally, I would like to thank Mr. Mohammad Saif Noman Khan, my supervisor at Institute of Business Administration for guiding me and giving me valuable advices.

Table of ContentsExecutive summaryvii1. Introduction11.1 Rationale of the Study11.2 Background11.2.1 About Standard Chartered Bank11.2.2 Management Information System (MIS)21.3 Objective of the Study31.3.1 Broad Objective31.3.2 Specific Objectives31.4 Scope41.5 Limitations41.6 Methodology41.7 Acronyms52. Standard chartered bank62.1 EXPANSION OF SCB62.2 PRESENT SITUATION OF SCB72.3 THE ORGANIZATION STRUCTURE72.3.1 BUSINESS/ CORPORATE BANKING OF SCB92.3.2 CONSUMER BANKING123. MIS of SCB153.1 CMO (Cash Management Operations)153.2 PMI (Project, MIS & Investigation)163.2.1 PMI activities173.2.2 MIS activities203.2.2.1 Reporting203.2.2.2 Other activities243.2.3 MIS Tools253.2.4 Summarized MIS Workflow:273.2.5 Shortcomings284. Conclusion294.1 Summary294.2 Suggestions/ Recommendations29

List of FiguresFigure 1: Classification of SCB Banking Services8Figure 2: Business/ Corporate Banking of SCB9Figure 3: Organizational structure of Standard Chartered Bank12Figure 4: Flowchart of Bangladesh bank letter tracking activity19Figure 5: Flowchart of activities for internal report generation21Figure 6: Flowchart of activities for regulatory report generation23Figure 7: Summary of MIS activities27

List of TablesTable 1: Volume based activity of PMI and their type17Table 2: Fixed activity of PMI and their type18Table 3: List of reports and their sources22

Executive summaryStandard Chartered Bank is one of the most prominent International Banks in Bangladesh. With an operating history of more than 150 years, it is now a very strong banking brand in the world. It is also credited with providing the best banking services and using the latest systems and technologies to assist that. MIS (Management Information System) is one of the core components through which the bank aims to achieve the level of quality. The MIS activity of SCB is not centralized. However, the major segments of the bank often have their own MIS personnel or small units for the purpose.The following study is about the activities of the MIS departments and what role it plays in the CMO (Cash Management Operations) department and then proceeds to suggest any possible improvements to the current MIS.The main part of the study is a result of direct working experience from attachment to MIS and also direct guidance and interview of related personnel.The report starts with a background study of SCB in general and then moves on to the MIS unit and its related units in the CMO Department. The roles and activities, as seen there, are very widespread. The MIS unit is incorporated alongside projects and investigations in PMI (Projects, MIS & Investigations). The major activities conducted are reporting, which maybe both for internal and regulatory purpose with frequencies vary from daily to yearly and on demand basis. Other activities also include call back, Bangladesh Bank letter tracking, Delegation of authority, database management, etc. Often these activities are related to other units while some are done solely by MIS using information from central Database.The units of the CMO (ITT, OTT, STS-PODD, FCU, LCU, CAAR, Billspay) all are linked to MIS (PMI) in the way that all have to submit periodic information to MIS for reports. Also, the Bangladesh bank letter headed to the units are passed through and backed up by MIS. Moreover, the call back carried out by PMI also requires information and documents from other units. Also, often clearance is required for foreign remittances. These clearances include regulatory reports, which are maintained by MIS.The MIS activities in SCB Bangladesh, however, are mainly limited to activities similar to data mining. In many countries, it is a practice to incorporate heavy-duty analytics to MIS. Often, units called Analytics are present to provide in depth analysis for enhanced decision making. Currently only Consumer banking has a small scale analytics. But the major portion of the analysis is done by team in India. According to MIS in SCB, Dhaka, it would be beneficial to incorporate a full-fledged Analytics team in SCB Bangladesh. Also, there should be a centralized properly-defined MIS department to handle all MIS related activity. This would allow focus on reports and figures as suited to Bangladesh market and regulations. The MIS team uses a custom made macro based MS Excel application to deal with the reporting and forecasting. While this has made the working significantly efficient, it has not been recognized by SCB. Implementing this or upgrading this more thoroughly may provide an even more efficient MIS team. Another most important finding was that the MIS team, though quite efficient, is often bottlenecked by the staffing shortage in other related departments since the interlinking is quite strong. So, often the input of required information is halted, thereby slowing down the process.This report sheds light on the MIS activities and its link to other unit and from those studies, also provides suggestions / recommendations. The organization is likely to find the report helpful for its purpose.

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1. Introduction1.1 Rationale of the StudyThis study is prepared as a mandatory requirement for the completion of the internship program under the BBA program of Institute of Business Administration of the University of Dhaka. The organization affiliated throughout this period is Standard Chartered Bank. The topic of the study was chosen due to affiliation with the PMI (Projects, MIS & Investigation) unit of the CMO (Cash Management Operations) Department. This study was made under the supervision of Mr. Saif Noman Khan, Associate Professor of the institute.

1.2 Background1.2.1 About Standard Chartered BankStandard Chartered Bankis the leading multinational bank in this country. To maintain its leading position in the Bangladesh, Standard Chartered Bank is always keen to develop long-term beneficial relationship with trustworthy clients. To achieve this end, they have always upgraded their approaches to achieve profitability. The Standard Chartered Bank is an international banking and financial services group that is incorporated in the U.K. with its headquarters in London. It has a unique international network. It now spans in the developed and emerging economies of the world, after been built over 150 years.Standard Chartered Banks operation is segmented under six regions: Europe, Middle East, South Asia, South East Asia, Australia and the USA. Globally, SCB group owns a network of 600 offices in more than 50 countries with staff of about 28000 people. Globally, SCB specializes in personal, corporate, institutional and personal finance and custodial services. The bank excels in providing the most efficient, consistent and timely services and is the multinational bank in the Middle East, South Asia and North African regions.Standard Chartered Bank opened its operation in Chittagong in 1947 which, at that time was the eastern region of the newly created Pakistan. The branch opened mainly to facilitate the post war re-establishment and expansion in South East Asia. The bank opened its first branch in Dhaka in 1966 and shifted its headquarter from Chittagong to Dhaka after the birth of the Republic of Bangladesh in 1971.The bank increasingly invested in people, technology and premises as its business grew in relation to the countrys thriving economy. SCB acquired ANZ Grindlays Bank for 1.34 billion dollars in the year 2000. The new venture that is the merger was named as Standard Chartered Grindlays Bank. Now after the takeover it is known as Standard Chartered Bank. Recently it also has acquired AMEX bank and has grown even more in strength and size as well as customer base.Extensive knowledge of the market and essential expertise in wide financial services underline Standard Chartered Banks strength to build business opportunities and institutional clients at home and abroad. Continuous upgrading of technology and control system has enabled the bank to offer new services, which include 33 ATM booths, Phone Banking services through call center, SMS banking and I-banking on a 24 hour basis through its 24 branches. Standard Chartered Banks services in Bangladesh, ranges from Personal & Corporate Banking to Institutional Banking, Treasury and Custodial services which has resulted in the expansion of the bank since its inception.1.2.2 Management Information System (MIS)A management information system (MIS) is a system that provides information needed to manage organizations effectively. Management information systems are regarded to be a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems.

Common applications of MIS:

Strategy Support While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision-making. MIS systems can be used to transform data into information useful for decision making. Computers can provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy. MIS systems provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers. By studying these reports decision-makers can identify patterns and trends that would have remained unseen if the raw data were consulted manually. MIS systems can also use these raw data to run simulations - hypothetical scenarios that answer a range of what if questions regarding alterations in strategy. For instance, MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product. These Decision Support Systems (DSS) enable more informed decision making within an enterprise than would be possible without MIS systems. Data Processing:Not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole.

1.3 Objective of the StudyThis study has the following broad and specific objectives. 1.3.1 Broad ObjectiveThe broad objective of this study is to study the work flow in the MIS unit of SCB and find out its links with other units and suggest possible improvements.1.3.2 Specific ObjectivesThe specific objectives of this study are as follows: To find out the work flow in MIS To find the relation and interdependency between MIS and other departments To find out the importance of the roles that MIS department serves To suggest possible improvements

1.4 ScopeThe study describes the MIS activities of SCB and find out its role in CMO (Cash Management Operations). The study also deals with relation of MIS with other units. It is a qualitative report and is limited to a descriptive study. Moreover, the focus of the study is on the MIS activities of the CMO department and also the workings of other units of CMO.

1.5 LimitationsWhile preparing this report, there was several difficulties faced, without which the quality of the report could have been better. They are: Confidentiality of information: SCB is very strict about the confidentiality of its information. Therefore no quantitative information or any models was disclosed. Therefore the report had to be limited to qualitative only. Whereas presence of quantitative analysis could have been more fruitful. Lack of previous studies: There have not been much previous studies on the MIS activities focusing on SCB Bangladesh. Therefore, there was very less secondary information to use. Lack of public information: There is no publicly disclosed information regarding MIS or CMO of SCB. Therefore, the study was a product of attachment to the related units and departments only.

1.6 MethodologyThe study was mainly based on primary studies. Secondary information was used to provide the background of the organization. Other parts were done by primary studies which include: First-hand experience from attachment to MIS of CMO Informal detailed interviews with Mr. Abu Shams Mahmood Arif, Assistant Manager, PMI, CMO. Informal interviews with other CMO personnel.

1.7 Acronyms SCB: Standard Chartered Bank CMO: Cash Management Operations MIS: Management Information System PMI: Project, MIS & Investigations ITT: Inward Telegraphic Transfer OTT: Outward Telegraphic Transfer STS-PODD: Straight Through Service Pay Order & Demand Draft CAAR: Commercial And Airlines Remittance eBBS: Electronic Basic Banking System

2. Standard chartered bankStandard Chartered Bank is the largest international bank in Bangladesh with 26 Branches, 57 ATMs and 7 Financial Kiosks; employing over 1,300 people. It is the only foreign bank in the country with presence in 6 cities Dhaka, Chittagong, Khulna, Sylhet, Bogra and Narayanganj; including the country's only offshore banking units inside Dhaka Export Processing Zone (DEPZ) at Savar and Chittagong Export Processing Zone (CEPZ).The acquisitions of Grindlays bank (in 2000) and the commercial banking business of American Express Bank in Bangladesh (in 2006) are reflections of the Banks increasing commitment to Bangladesh. The bank increasingly invested in people, technology and premises as its business grew in relation to the country's thriving economy. It currently provides both Consumer Banking and Wholesale Banking Services, ranging from Personal & Corporate Banking to Institutional Banking, Treasury and Custodial services. Continuous upgrading of technology and control systems has enabled the bank to offer new and improved services such as Phonebanking, I-banking, e-Lending.2.1 EXPANSION OF SCBAcquisition has long been popular vehicle for expanding the scope of the organization into new business areas. Companies typically acquire a company when they lack important competencies (resource or capabilities) and very often they end up purchasing an incumbent company that has those competencies and they do so at a reasonable price.The acquisition of Grindlays Bank from the ANZ Banking Group by the Standard Chartered Group on 1st October 2000 was opportunity driven. It has given Standard Chartered an opportunity to expand into new areas where it was not operating at all. Moreover, buying Grindlays from ANZ now propels it from number five to number one among international banks in India, with some extra footholds in the Middle East. In addition to that, at 1.3 bn U.S dollars, it is hard to complain that Standard Chartered has overpaid. The financial ease is less compelling for ANZ shareholders, as there are advantages to getting out of a strategically peripheral business.This acquisition of Grindlays Bank has added 6000 employees and 4 countries to Standard Chartereds existing network of 27,000 employees and 570 offices in 50 countries. The end result is that Standard Chartered, which went into the 1997 Asian Crisis with strong business in Hong Kong, Singapore and Malaysia, emerges with additional core markets in India and Thailand. Moreover, the deal has made Standard Chartered the largest foreign bank by assets in India, Pakistan and Bangladesh and the second largest in Sri Lanka and the United Arab Emirates. The bank had been seeking to expand in the region since the end of the Asian economic crisis, and has finally become successful in its expansion.2.2 PRESENT SITUATION OF SCBGlobally, the key resources of SCB include: A network of over 600 offices in 50 countries. A staff of about 33000 people managing assets of around 47 billion pounds. Standard Chartered Banks international business in Personal Banking, Corporate Banking and Standard Chartered Markets are its special strengths. Standard Chartered Bank also maintains correspondent relationship with over 600 banks in 157 countries around the world.The global strategies of Standard Chartered Bank are: To build and grow strong businesses in East and South East Asia- the Asia Pacific Region. To enhance historical position in the Middle East and South Asia region. To concentrate operations in those activities that support Standard Chartered Banks remarkable franchise in newly industrialized and emerging markets.

2.3THE ORGANIZATION STRUCTURESCB in Bangladesh has its headquarters and sixteen branches in Dhaka, five in Chittagong and one branch in Sylhet, Khulna, Narayanganj and Bogra each. While the full range of services is available at the headquarters, other branches offer specific services appropriate for the location. At the headquarter, the bank mainly consists of two divisions: Business SupportThe business division has the following departments: Corporate Banking Group (CBG) Treasury (TSY) Institutional Banking Group (IBG) Consumer Banking (CB) Custodial Services (CUS)SCB is primarily corporate driven. More than the corporate banking generates 40% of its revenue group while Treasury contributes more than 20% to the overall revenue. The rest is generated from Personal Banking, Custodial Services and Institutional Banking.The Support division provides assistance to the above business activities and consists of the following departments: Operations Finance, Administration and Risk Management Information Technology Center Human Resource Department Legal and Compliance External Affairs CreditBANKING SERVICES OF SCB IN BANGLADESHThere are two types of services provided by SCB1. Business or Corporate Financial Services2. Retail or Consumer Financial ServicesBut these two services can be classified further by the following ways:

Figure 1: Classification of SCB Banking Services

2.3.1 BUSINESS/ CORPORATE BANKING OF SCBStandard Chartered Banks corporate clients mainly comprise the top local and multinational companies operating in Bangladesh. The main objective of this department is to build and maintain positive relationships with their clients. As a result, each and every company is assigned a Relationship Manager, who maintains regular contacts with clients. Moreover, this department offers the following facilities to its clients: Project Finance. Syndicated Loans. Bonds and Guarantees, etc.As figure 4.1 shows SCB offers corporate banking facilities to both local corporate and multinationals. Besides, it also provides commercial, institutional, quasi-government or correspondence and treasury banking facilities.

Figure 2: Business/ Corporate Banking of SCBMERCHANT BANKINGSCB is recognized as the leading financial institution in corporate finance services in Bangladesh. A professional management team caters to the needs of its clients and provides them with a wide range of financial services some of which are project financing and investment consultancy, syndicate debt and equity, bond and guaranties, local and international treasury products.INSTITUTIONAL BANKINGThe IBG of Standard Chartered Bank offers a wide variety of products and services to the different fund based organizations like donor agencies, NGOs, voluntary organizations, foreign missions, airlines, shipping lines and their personnel. It has global links with leading banking institutions, local banks, financial institutions and agency arrangements through its network of offices in 40 countries. The bank offers a full range of clearing, payment, collection and import-export handling services. The bank offers foreign missions, voluntary organizations, consultants, airlines, shipping lines, and their personnel the following financial services: Current accounts in both Taka and other major foreign currencies. Convertible Taka accounts (these funds are freely convertible to major Internationalcurrencies. Local and foreign currency, remittance, etc.The verities of financial products offered by this department are: Vostro Accounts IBG, Bangladesh maintains Vostro Accounts of banking and financial institutions worldwide. Customers maintaining such accounts can remit funds throughout the country through the Standard Chartered Groups branch network as well as through the Groups local correspondent relationships. Nostro Accounts In order to increase and promote the correspondent banking business worldwide, IBG uses Nostro accounts to Bangladeshi banks and financial institutions in almost all Es panning the Standard Chartered Groups global network. Group branches and subsidies provide full clearing and payment services in the UK, USA, Hong Kong, Malaysia, Singapore and many African countries. Worldwide payments services are facilitated by a network of branches supported by electronic cash management (available in select locations), fund transfer system and membership of SWIFT.

COMMERCIAL BANKINGSCB offers different commercial banking facilities to all commercial concern especially those with particular involvement with import and export finance. It provides the finance facilities like trade finance facilities including counseling, confirming export L/Cs, and issue import L/Cs backed by its international branch and correspondent network. It also provides bonds and guarantees, investment advice, leasing facilities, project finance opportunities.

QUASI GOVERNMENT BANKINGThe quasi-government service of SCB helps the government by providing different financial service like efficient and knowledgeable management of trade business (import & export), skills in barter, swaps and counter trade deals. In addition, the opportunity of debenture finance for new projects, possibilities of hard currency loans and lease deals, the opportunity of syndicated hard currency, financing of loans and import L/Cs, highly efficient account management and remittance handling within country or abroad.TREASURY BANKINGThe foreign exchange and money market operation of the Standard Chartered Bank in the world is extensive. Exotic currencies happen to be one of its specials areas of strength. A 24 hour-service is provided to customers in Bangladesh through the Banks network of dealing centers placed in the principal of the world. The Banks treasury specializes in offering solutions to who wish to manage interest rate and currency exposures that result from trade, investment and financing activities of other dynamic economies of the region. Treasury operations are developed in line with changing market conditions to offer the best services to its customers. According to BAFEDA (Bangladesh Exchange Dealers Association), Standard Chartered Bank presently controls 42% of the local foreign exchange markets traded volume.

2.3.2 CONSUMER BANKINGThe bank is divided into several divisions and business units, which are also further sub-divided. The divisions are mainly based on some service lines designed for and provided to targeted customers, other divisions and units are there to support the business activities of the major two divisions namely the corporate banking division and the consumer banking division. The organogram of Standard Chartered Bank in Bangladesh is given belowThe organization structure of Standard Chartered Bank:

Figure 3: Organizational structure of Standard Chartered BankSuperior retail banking services comprising a wide range of deposits and loan products are offered by Standard Chartered Bank to its individual customers through consumer banking. This division constantly faces challenges and meets them by developing new products and services to fulfill the specific requirements of local and foreign customers. The consumer banking division provides the following services through the numerous branches spread throughout the country.1. Personal Banking2. Private Banking3. Customer Finance4. Investment Management5. Wage Earners Services6. Locker FacilityCORRESPONDENT BANKINGThe International Network Service (INS) department offers its correspondent customers: Current account services where Taka settlement is necessary. The ability to issue bonds and guarantees in support of their customers business. Advising of L/C and negotiation of documents Market intelligence and status reports. Inter branch transactions facilities Risk exposuresPHONE BANKING This department gives the following services: Operations of accounts over the phone Transfer of money between accounts Order Cheque books, account statement Any kind of query related to banking transactionsOTHER SUPPORT SERVICESFor providing all these services to customers efficiently, the bank undertakes some other necessary support services, which are described below:CUSTODIAL SERVICES: THE EQUITORHeadquartered in Singapore, SCB equitorfulfils the groups strategic commitment to the provision of custodial service in Asia. Equators customers are primarily foreign global custodians and broker/dealer requiring cross border information as well as sub-custodian services. SCB, Bangladesh is responsible for the planning in Bangladesh, but the overall management of the custody business is based on Equitors international business strategy. Clients are offered a customized and comprehensive range of products and services, which include: Custodial services Brokerage, clearing and settlement services Securities lending Foreign exchange Transfer agent for institutional debt and equity offerings Delivery, receipt, settlement, registration and physical safe custody of securitiesOPERATIONS DEPARTMENT This department helps to run the businesses of the bank in a smooth and controlled manner. They deal with the closing and opening of different types of accounts and other payments and accounts related processing of the Personal Banking division. Moreover, they also deal the processing works of the treasury division. Following are the main functions of the operations department: Central operations deals with the closing and opening of accounts and other payments and account related processing of the Personal Banking Division. Treasury operations help to deal with the processing works of the treasury division. Loan Administration Unit (LAU) deals with the processing of the Corporate Banking division.FINANCE, ADMINISTRATION AND RISK MANAGEMENTThis department performs the following activities: Administration, audit and back office operation. Taking care of taxation and financial control of the Bank. Keeping track of overall credit operation. Quality Control and Inspection

INFORMATIONAL TECHNOLOGY (IT) DEPARTMENTThis department helps to maintain communication with the different branches operating in Bangladesh as well as those that are operating outside Bangladesh. They are also responsible for maintaining the overall computerized system, such as Commercial Banking System (CBS), of the bank. They have a technical support team who solve all types of technical or system failures.HUMAN RESOURCE DEPARTMENTThis department manages recruitment, training and career progression plan. Standard Chartered Bank highlights the importance of developing its people to create a culture of customer service, innovation, teamwork and professional excellence. Details of the activities and policies of the department are discussed in a later section.

3. MIS of SCB

In SCB, there is no central MIS department. All the larger units conduct some MIS activities of their own. These activities may be undertaken by a staff as a part of his activities or there might be a small team dedicated for this purpose. In consumer banking, there is a MIS and analytics team. In wholesale banking, the MIS is carried out within the CMO (Cash Management Operations). The study is an in-depth study on that.The extent of MIS activity in SCB is more or less limited to data mining and reporting. The reports are often sent to India for analysis. There is a fully fledged analytics team in India for analyzing the reports and taking group decisions.3.1 CMO (Cash Management Operations)The cash management operations department is the wholesale banking departments operational end. It is a large department consisting of 8 units and about 75 Full time and contractual staff. The units of CMO are: ITT (Inward Telegraphic Transfer) OTT (Outward Telegraphic Transfer) STS-PODD (Straight Through Service Pay Order and Demand Draft) FCU (Foreign Cheque collection) LCU (Local Cheque collection) Billspay PMI (Project, MIS & Investigation) CAAR (Commercial And Airlines Remittance)ITT (Inward Telegraphic Transfer)This unit handles the inward remittances coming through SCB. The remittances take place through SWIFT (Society for Worldwide Interbank Financial Telecommunication). OTT (Outward Telegraphic Transfer)This unit handles the outward remittances going through SCB. The remittances take place through SWIFT. STS-PODD (Straight through Service Pay Order and Demand Draft)This unit handles the pay order and demand draft and also transactions through BEFTN. The Bangladesh Electronic Funds Transfer Network (BEFTN) operates as a processing and delivery center providing for the distribution and settlement of electronic credit and debit instruments among all participating banks. This Network will operate in a realtime batch processing mode.FCUThis unit deals with receiving and processing cheques collected from banks of foreign origin. The bank of origin maybe foreign branches of SCB or other foreign banksLCUThis unit deals with receiving and processing cheques collected from banks of local origin. The bank of origin maybe other domestic branches of SCB or different banks in Bangladesh.BillspayThis unit deals with paying bills and processing them.PMI (Project, MIS & Investigation)This is the unit of which MIS is a part. This unit deals with various projects as is asked by SCB or the regulators. The projects often involve reports. As a result, there is no hard and fast schedule for the activities conducted. The unit carries out all these activities. The investigation encompasses callback procedures and also checking after anomalous SWIFTs.CAAR (Commercial And Airlines Remittance)This unit handles the shipping and airlines customers of SCB. This specialized unit handles some of the largest customers of SCB and has to maintain a close liaison with Bangladesh Bank. Moreover, this units activities involve lots of paperwork.

3.2 PMI (Project, MIS & Investigation)This is the department concerning the study. SCB does not have separate MIS department or unit, but this unit acts as a combination of MIS and other related activities. Below are some specifics:Staff: 2 Operations Assistant 1 Assistant Manager 2 Managers 1 Senior Managers

3.2.1 PMI activitiesThe lists of all the activities of PMI are as follows:Volume basedTypeActivity

ReceiptReceiving queries through mail/email/swift message from customers/branches

ProcessingCollecting required information

ProcessingInvestigating the root cause

ProcessingCompiling gathered data/ information in the investigation register

ProcessingSearching for appropriate status of the transactions through eOpal and other related software

ProcessingCreating MT 199 as response to the concerned banks

ProcessingConfirming status of the investigation

ProcessingReceiving acknowledgement & filing

ProcessingPerforming email correspondence

ProcessingSending notification email/swift to remitting banks/originating source for erroneous transactions

ProcessingSending reminder messages in case of no response

ProcessingRefunding outstanding cover

ProcessingApproving swift messages

Table 1: Volume based activity of PMI and their typeFixed processingActivities

Collecting documents from different units

Conducting KCSAs

Reviewing KCSAs

Raising exceptions & discussing with concerned department's Line Manager

Setting action plan & discussing with concerned department's Line Manager

Grading KCSA exception/phoenix risk issue

Raising & tracking open exception through phoenix

Receiving emails from IRU for NOSTRO outstanding/unmatched items

Reviewing source documentation & referring to relevant person

Reconciling items & informing IRU through email

Receiving data from different departments/sources

Compiling data as per requirement

Analyzing the compiled data/information with sequential & logical manner

Investigating the deviances found while analyzing and finding the root cause

Reviewing and fixing anomalies identified (if any)

Compiling the gathered information in the main file

Executing the tracking method to ensure irregularities

Forecasting the data/information in a well-structured manner that is easy to understand

Reconciling and cross match the data wherever required and possible

Checking of reports

Delivering reports to concerned person/depts./regulatory/govt. Bodies

Receiving emails from IRU regarding outstanding items

Checking with respective departments to ensure correctness of source documents

Following up until resolution

Escalating old items as per policy

Receiving list of ITT pending cases from ITT unit

Searching phone number of concerned customers from eBBS

Making phone calls to customers

Typing conversations with customers

Searching the concerned RMS from ebbs

Emailing RM updating about their cases

Printing the emails & filling with relevant cases until the issue is resolved

Receiving DOA related documents signed off by concerned staff and lm

Providing copies to unit managers for onward distribution to concerned individuals

Filing original DOA documents

Table 2: Fixed activity of PMI and their type

Investigations & query handling Receive and register query Customer/branches/group/correspondent bank Via mail/email/SWIFT Verify source Investigate and respondCall back Call back request from internal CMO units ITT OTT FCU LCU STS-PODD Perform callback using call back tree/eBBS

Bangladesh Bank letter trackingBangladesh Bank sends various letters frequently to SCB CMO with different purposes like notifying approval of documents, asking for documents, remittance enquiry, enquiry about suspicious transaction and so on. Another function of the MIS unit is to ensure receipt of them and tracking for future use. The letters are received and signed by the CEOs office at first. Then the MIS unit receives it and enters the details in a file. The letter is given a unique ID and photocopied. It is then sent to the respective unit and the photocopy stored by MIS for future reference.

Figure 4: Flowchart of Bangladesh bank letter tracking activity

3.2.2 MIS activities3.2.2.1 ReportingThe primary MIS activity is reporting. The reports generated are of a wide variety. The data sources are from all other departments and the timeframes varies from daily to yearly and on demand basis. Currently the report generation is done using MS Excel and MS Access. For the reporting purpose, the MIS team Assistant Manager has developed a custom made macro-based MS Excel application to auto-generate the reports and forecast. Named CMO analytics, this only involves copying the necessary data so that reports, charts, trends and forecasts are auto-generated. The different types of reports based on frequency are: Daily Weekly Fortnightly Monthly Quarterly Half yearly Yearly On demandHowever, the overall categorization of the reports is: Internal Regulatory

3.2.2.1.1 Internal Reporting:The internal reporting consists of a wide array of report with prepared data from other departments or data collected by the MIS department itself. The reports include a wide variety from regular leave maintenance to forecasting which involved decision making by the managerial bodies.

Figure 5: Flowchart of activities for internal report generationList of reportsThe internal reports can be further categorized by the data sources. Some reports are originated by periodical data submitted by other units in the CMO department. Other reports are prepared by the MIS department itself taking data from the central database or other departments outside CMO. The lists of some of the reports from their point of origins are:Reports from other departments:ReportsDepartments

Deviation trackerMost

Transaction related to sanctioned countriesITT

KRIMost

Error Report for checker and makerAll

Travel, medical and educational figuresOTT, PODD

No. of staff taken block leaveAll

Volume of Thruput RequestPODD, OTT, ITT, LCU

High value manual payment transaction and call backMost

Wire transfer exception report for ITT and OTTOTT, ITT

Regulatory statement submissionITT, PMI

List of new joiners and leaversMost

Intra group sanctions-rejection trackerITT

S-9, S-13 (Foreign Investment, equity, loan) reportFCU, ITT

SR VII escalationITT, INV

System limit review against DOA (eBranch)Most

GTO Scorecard to UORMPMI, Risk

Sundry suspense reporting templatePMI, Risk

Duplicate framework (DFW) monthly reportOTT, ITT

System access review (OPCC, RCMC) signed copyPOCC, LCU

JD, DOA, Handover, Takeover changes signed copyAll

Table 3: List of reports and their sources

MIS generated reportsThese reports are produced by MIS itself using information from central database Donation Reports to NGO Bureau

Inter-day & Intra-Day Chart

BOLD Intermediate

Security Matrix Review

Folder Access review

One page process summary sheet

DOI Update

CIO Matrix

File Archiving

Miscellaneous Data Analysis Support

PAR raise for CMO

RMS - Limit change, norkom, ID Deletion/creation

3.2.2.1.2 Regulatory Reporting

Check documentsCircular received from Bangladesh BankClient list filtered for applicable clientsCircular forwarded and clients communicated and guidedFeedback & documents receivedCorrections madeVerify & ValidateCompiled and inputCorrection from Bangladesh BankReported and FinalizedOKNot OKOKNot OKRegulatory reports are requirements from Bangladesh Bank. The reporting procedure is usually initiated by Bangladesh Bank issuing a circular regarding the reports. The bank then circulates the circular among the clients that are eligible for the reporting. Upon collecting the necessary forms and documents from the clients, SCB then justifies the presence of all the documents and any possible errors done while filling up the documents. The reports are then sent to Bangladesh Bank for further check. The regulators make any necessary amendments and resend it to SCB. After finalization, it is updated to Bangladesh Bank Server. These reports make up a huge portion of MIS activities as well as use up a significant amount of time.

Figure 6: Flowchart of activities for regulatory report generation

Major Regulatory ReportsFI 1 reportingFI 1 is a semi-annual survey and reporting conducted by Bangladesh Bank via the banks. The basic objective of this statistical survey is to identify the sources through which Foreign Direct Investment (FDI) come into Bangladesh and vice versa and quantify the magnitude of such resource flows. As the central bank of the country, Bangladesh Bank is responsible for monitoring FDI flows, which are to be used in compiling balance of payments statistics and international investment position of Bangladesh.

ED 1/ ED 2 reportingBangladesh Bank has been working for quite some time in collaboration with the Economic Relations Division of the Ministry of Finance to develop a database for private sector external debt under a UNDP funded project entitled "Capacity Building for Management of Foreign Aid in Bangladesh". In order to develop this database, information on foreign loans is collected from the private sector institutions/ enterprises. The private sector enterprises after getting approval for external borrowing from the Scrutiny Committee, headed by the Governor of Bangladesh Bank, have to submit the loan agreements made between the foreign lenders and the borrowing company. They also have to report the transaction data through the form ED-1 on quarterly basis (January-March, April-June, July-September and October-December).The ED 2 form is to be submitted when a new loan is taken while the ED 1 is on a quarterly basis to show the loan repayment schedule for the mentioned quarter. These reporting are also a responsibility of MIS department.

3.2.2.2 Other activitiesDatabase Setup Setup of various static data for processing CMO products. Setup done as per requirement of relevant transaction processing units Setup related to dotOpal Request of setup given to officer Setup done and checked Signed by officer & manager of MIS Hard copy checked and approved Setup related to RCMS Hard copy checked and approved Collection and submission of different report to regulators, groups, country management and regulatory department on daily/weekly/fortnightly/monthly/quarterly/half yearly/yearly or as & when basis.Delegation of authorities MIS & Investigations gets documents for CMO signed off by incumbent & line managers Provide copies to unit manager for distribution

3.2.3 MIS ToolsTo handle the internal reporting, the MIS of CMO department uses its own custom made tools. A custom made macro based tool named CMO Analytics is made in MS Excel to facilitate the process. This has significantly reduced the time involved in report generation and also decreased any chance of possible error due to repetitive report generation over time.The toolencompasses the following:Input: The necessary input from the other units or from the central database are pasted into the analytics in the following worksheets for further processing.Input

Error Input

KPI Input

Cost Input

Value Amount

Complaints

Capacity Model

Daily Volume

Complaints

Operations Metrics

Leave

KRI: One of the most important outputs from the analytics is the KRI (Key Risk Indicator). The worksheets calculate the KRI using the overall volume and the no. of errors made at different phases of activities. The different sheets deal with the different units of CMO.KRI

ITT

OTT

LCU

FCU

STS-PODD

Billspay

CARR

INV (PMI)

KPI: Another very important output from the analytics is the KPI (Key Performance Indicator). The worksheets calculate the KPI using the overall volume compared to the no. of employees involved at different phases of activities. The outputs involve the following:KPI

Error KPI

Product metrics

Service Metrics

Cost Monthly

Reporting: The major reports from the CMO Analytics are:Reporting

Volume Matrix monthly

South Asia call

AML Matrics

TB Data

Dashboard: The dashboard provides consolidated information by means of tables, charts and graphs. These give an overall idea about the CMO and other important aspects.Dashboard

CMO Overview

CMO Unit wise Volume

Single Unit Overview

STS PODD Volume

Cost

Summary: The summary worksheets are similar to dashboard with the difference that they are much for focused. The following are the main summary being processed by CMO Analytics.Summary

Product-3 years

Staff Chart

KPI- 3 years

Error - 3 years

Internal Errors

Cost - 3 years

Capacity model - 1 year

Complaints - 1 year

Leave status

Analysis: The analysis calculation mainly deals with the forecasting activity of MIS. The charts and graphs use trend analysis and regression to forecast result 1 or 2 months in the future.Analysis

Volume Analysis

FTE Management

Accuracy

Capacity Utilization

Forecast-Linear

Forecast - Exponential

Threshold Volume

Volume Forecast

Volume Forecast - CMO

Daily Volume Complaints

MISBangladesh BankITTOTTFCULCUSTS-PODDBillspayCAARClientsAnalytics, IndiaHead of CMOReportsFeedbackInputCircular & FeedbackCircularReportsLetters3.2.4 Summarized MIS Workflow:

Figure 7: Summary of MIS activities

3.2.5 ShortcomingsUpon frequent discussions with various personnel from both MIS and other units of CMO, some problems were found. The condensed forms of the problems are: Staffing: Most of the MIS activities are dependent on input from other units. However, understaffing is sometimes a problem in this regard. Therefore, this creates a bottleneck in the performance. Independent MIS: The MIS unit is not a separate unit of its own. It is combined with projects and Investigations as well. Therefore, often the boundary between MIS activities and other PMI activities overlap. Regulatory Reporting: During the regulatory reporting, the function of MIS is to circulate the circular and instructions and receive the necessary documents, amend and upload. However, it is seen that MIS has also to shoulder the additional duty of chasing after the negligent clients. These added workload and responsibility can often cause MIS to divert from its usual activities.

4. Conclusion4.1 SummaryThe study is a descriptive one focusing on the activities as conducted by the MIS unit of SCB. This also took under consideration the link between other units and the MIS. It has also been seen that the MIS department plays an important part in maintaining regulatory requirements of the bank. It has been seen that MIS is an important component in both day-to-day operations and also important decision making. The major roles of MIS can be outlined as: Report generation: The primary function of MIS is report generation which encompasses reports, tables, graphs, charts, forecasts, etc. Regulatory liaison: All the regulatory letters from Bangladesh Bank for CMO are received by MIS after passing through the CEOs office. Moreover, the regulatory reports like FI-1 or ED 1/ ED 2 reports. Database setup: Setups related to the banks own software like eOpal or RCMS is conducted by the MIS.As is seen, the main activity of MIS is mainly data mining and reporting. Though analytics is supposed to be an enhanced activity of MIS, it is done by Analytics team in India. Only Consumer Banking has some form of Analytics present. Nevertheless, it is obvious that MIS performs crucial role in the banks operation and decision making.

4.2 Suggestions/ RecommendationsFrequent interviews with MIS personnel have led to the following important recommendations, which SCB could take into consideration to enhance MIS functionality. Establish a centralized MIS for all departments: Currently the MIS activities are handled separately by the major departments with small units or individual personnel responsible for the functions. It could be beneficial to have a centralized MIS department with dedicated personnel for these activities. Integrate analytics:Currently the portion of MIS activity done in SCB Bangladesh is mainly data mining. However, the analytics portion is done by a team in India as a group operation. However, these analytics could be conducted in Bangladesh as well. In that case, the analysis and the decision making could be done tailored to Bangladesh scenario specifically keeping in mind the local market and regulations. Wider report varieties:Currently there are a fixed set of reports to be generated by the MIS team. MIS personnel suggested that newer varieties of reports could be introduced. These should provide newer challenge which the personnel suggested. Software:Currently the software used for report generation is MS Office suite, in which MS Excel and MS Access are the ones most used. Custom made software could be used which are tailored for report generating purpose. Moreover, MIS of CMO has its own macro based MS Excel application named CMO Analytics which was developed by MIS personnel. However, this was an individual venture and is self-owned. SCB has made no move to acknowledge or incorporate it. SCB could make it official and recognize it since this particular module has increased the efficiency manifold.

Bibliography Arif, A. S. (2013, June). (R. Ahmed, Interviewer) Manage Information System. (n.d.). Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Management_information_system Services Offered By Standard Chartered Bank. (n.d.). Retrieved from Assignmentpoint: http://www.assignmentpoint.com/business/internship-report-on-services-offered-by-standard-chartered-bank.html Statistics Department. (n.d.). Retrieved from Bangladesh Bank Website: http://www.bangladesh-bank.org/aboutus/dept/stat/surveyforms.php