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INTRODUCTION
Banking as such has undergone a sea of change in the past couple of decades, the
hassles of obtaining a Demand Draft/Travellers cheque, the infinite wait to get interbank
cheques cleared, waiting in long queues to deposit and withdraw money, having to pay
exorbitant amounts as fee for wired transfer between different branches of the same bank,
all these have changed drastically for the better, giving the customers and the bankers
more flexibility and speed. It has also opened up online banking, mobile banking, what
we now refer to as plastic money for shopping which has made life a lot easier. It has
enabled us to book tickets on trains/buses/airplanes on the click of a mouse (not literally
so though). Gone are the days one received a salary in an envelope or a cheque, now its
all about wired transfer. All these have been made possible because of the extensive use
of Information Technology. In this report I will be exploring on how IT and System
Integration has changed the banking landscape for good.
Banking in Malaysia
In Malaysia essentially after the deregulation, many foreign banks and private
banks got a foothold in Malaysia, bringing with them the latest technology which gave
them a competitive edge over the public sector banks, which pushed the till then
inefficient public sector banks to embrace Information Technology or fade into
obsolescence ignoring it. Also the RBI had taken up a lot of initiative to ensure that banks
adopted Information technology which essentially made the whole business more
transparent, and easier to regulate.
Banking has essentially been using IT for two purposes for communication and for
business processes. We receive automatic updates of any transaction on our accounts
through mobiles. When we swipe our card, make a withdrawal in an ATM or swipe our
card in a shop, we get instant updates on our mobiles thus ensuring safety, minimizing
our losses in case we lose our cards, or chequebooks etc. Information is available anytime
anywhere, IT has facilitated the Intra-bank and Inter-bank integration, eased the flow of
information in a safe and secure manner. Initially customers were able to transact only
with one branch, as the account information was not stored in a centralized location,
which was not an option as long as paper based accounting procedures were used, as
storage and duplication were deterrent factors. With the advent of IT centralized storage
of information was an option and with the fast paced changes in related fields which
makes storage, retrieval and duplication not only faster but also cheaper. Thus by using
IT productivity was improved manifold and costs were driven down. Now data can be
easily access and analyzed foregoing the earlier time consuming processes. IT has
improved operational efficiency and facilitated quicker and more accurate decision
making, accurate decisions are facilitated by bypassing the intermediaries which could
input errors in the information(in the form of reports) passed to the decision makers.
One of the solutions is E-pay. E-pay banking solutions are experts in adding enhanced
functionality to existing bank hardware. E-pay provides solutions for some of the biggest
banks in Malaysia and all over the world. Our software solutions ensure secure, flawless,
integration of E-pays popular product suite into existing EFTPOS and banking Points
of Sale (POS).
Net Banking
Credit Card Online
Mobile Banking
NetSafe
Phone banking
Online Bill Payment
Online payment of Income Tax, Excise Duty and Service Tax
Shopping
Ticket Booking
Card to Card Transfers
Smart Money order
Bank@Home
eCheques
Prepaid Mobile Recharge
NEFT
To establish an Electronic Funds Transfer System to facilitate an efficient, secure,
economical, reliable and expeditious system of funds transfer and clearing in the banking
sector throughout Malaysia. The customer willing to avail the NEFT facility offered by us
shall submit an "NEFT Application Form" authorising the sending bank to debit the
sender's account and transfer funds to the beneficiary specified in the NEFT Application
Form. The Beneficiary's account will be credited on the same day by crediting the
specified account of the beneficiary or otherwise placing funds at the disposal of the
beneficiary.
The term is not new to the banking sector. Since the early 80s, banks have been using
this terminology to refer to the process of generating various reports and analyses at the
Corporate/Head offices for their decision making for own use as well as for conveyance
to authorities in charge of regulation
MIS in the present context of high availability of voluminous data on electronic media
at diverse locations and on diverse platforms, has become more pertinent to banks
decision-making process, thanks to the availability of new tools of technology such as
data warehousing, data mining
Management Information System would thus be the end product of both the processes data warehousing and data mining.
1. All transactions captured at the branch level would get consolidated at a central
location. Such a central location could be called the Data Warehouse of the
concerned bank
2. For banks with large number of branches, it may not be desirable to consolidate
the transaction details at one place only. It can be decentralised by locating the
services on regional basis.
Bank is in advanced stages of beta testing a new method of using mobile phones
to make payments. If this mobile payment method is implemented, users can
swipe their mobile phone and conduct various transactions, which were earlier
possible using the credit cards.
Organization transaction processing system
Transaction Processing System:
A Transaction Processing System (TPS) is a type of information system.
TPSs collect, store, modify, and retrieve the transactions of an organization. A transaction
is an event that generates or modifies data that is eventually stored in an information
system. From a technical perspective, a Transaction Processing System (or Transaction
Processing Monitor) monitors transaction programs, a special kind of programs. The
essence of a transaction program is that it manages data that must be left in a consistent
state.
TPS in Standard chartered bank:
Effective transaction processing system is working in Standard chartered
bank that offer enterprise the means to rapidly process transactions to ensure the smooth
flow of data and the progression of processes throughout the enterprise.
Payroll TPS
In Standard Chartered payroll TPS is designed to get information and record
of the employ and then to calculate his/her annual earning.
It get information about the employee from the employees department and
from general ledger and send it to payroll TPS from where it links that information with
Employee Data
Payroll TPS
Management Reports
General Ledger
L
General Ledger
L
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.
How it Works?
ADVANTAGES
Database Stability
The Advantage TPS maintains database stability in the event of workstation or
network failure. Should a workstation or the network fail during a transaction, a
transaction that is being committed will finish to completion, and an uncommitted
transaction will automatically be rolled back. If the file server crashes during a
transaction, the Advantage TPS log files are used when the Advantage Database
Server is reloaded to return the database to a known state.
Data Hiding (Read Committed Isolation Level)
The Advantage TPS uses the Read Committed Isolation Level to build
robustness into database applications by only allowing visibility of committed
data. While updates are being made within a transaction, the Advantage TPS
hides those updates from other users until that data is committed. The
uncommitted data is visible only to the application performing the transaction.
The other applications view the data as it was before the transaction began. If the
transaction is rolled back, the uncommitted data is never seen by any users other
than the one who was performing the transaction. If the transaction is committed,
the updated data becomes visible to all users at one time.
Recovery from System Failures
Automatic recovery of your database to a known state after a system failure is a
key feature of the Advantage TPS. System failures in this context are server
failures, such as operating system read or write errors. How the Advantage TPS
handles system failures depends on what phase the transaction was in when the
system failure occurred.
A transaction can be in one of three phases: the Build Phase, the Commit Phase,
or the Rollback Phase. The Build Phase is active as insert, update, and delete
operations are being issued by the application. These operations are logged to
the transaction log file by the Advantage TPS during this phase. The Commit
Phase occurs after the Advantage application issues a commit transaction
statement. This signals the Advantage TPS to begin writing the database updates
that are stored in the transaction log file to the tables and index files. The
Rollback Phase occurs after the Advantage application issues a rollback
transaction statement. This signals the Advantage TPS to abort all database
updates that are stored in the transaction log file. The database is left exactly as
it was before the transaction began.
If a system failure occurs during the Build Phase, the Advantage TPS aborts only
the insert, update, or delete operation that was in progress. The database is left
as it was before the individual operation occurred and the transaction remains in
the Build Phase. An error is returned to the application indicating that the insert,
update, or delete operation failed.
If a system failure occurs during the Commit Phase, the Advantage TPS puts the
transaction into the Rollback Phase. The entire transaction is aborted (rolled
back). The database is left as it was before the transaction began and the
DISADVANTAGES
Introduction
As already stated, the value of information derives from the actions
management takes as a result of using the information. It follows that
information specialists need to know what types of task and functions
management have to perform so that they are able to produce relevant
therefore usable information.
The tasks and functions management have to perform vary greatly in detail
according to the type and size of organisation and the way responsibilities are
arranged. However, there are many common elements and managerial tasks
can conveniently be grouped into five areas: planning, decision making,
organising and coordinating, leadership and motivation, and control.
Obviously the emphasis given to each area varies from manager to
manager and is especially dependent upon the level of the manager in the
organisation.
In broad terms, three levels of management can be seen in all
organisations. Top or strategic management, middle or tactical management
and junior or operational management.
There are clear differences in information requirements between a manager
at the operational or transactional level such as, say, a transport supervisor
and a manager at the strategic or top level such as, for example, the
marketing director. At the highest level, structured, formal MIS may actually be
counterproductive for, at these levels, informal MIS and external influences
become increasingly important.
Another factor which affects the tasks managers have to perform, and
hence
their
information
requirements,
is
the
extent
of functional
or
Human
Resources
department
which
has
functional
Whilst each of the five functional areas, which in total constitute the task of
management, needs relevant information, three particular areas planning,
decision making and control.
Challenges Of TPS
Taking into account the high workload of required transactions per second (TPS)
problems to TP systems can arise and be addressed in the areas of the TPF, and
the DDMS. The TPF is considered as a system to manage terminals and disk
and does not provide a database management system with high-power
transaction processing. The task to manage files and resources is thus in charge
of the application programmers or designers. Hence TPF of the TP system is not
able to manage the high volume of transactions and stands therefore for a
performance constraint to transaction processing
Hence to enhance the TPF the organizations should improve its the power an
capability including a data management system (to have transaction logging and
media recovery), a network management system, a transaction management
system, and so on . TPF can afterwards be used as a basis for a high-volume
transaction processor front-end using Information Management System (IMS) as
the back-end system . Furthermore the organizations should implement a
message-based architecture to the TPF, which can be the basis for distribution .
The pros are that this solution would at least fulfill the requirement of distribution,
granularity, and cheapness. Cons are the uncertainty about the manageability,
the availability, and the changeability. However, this possibility of improving the
TP architecture will support to manage and process a high volume of
transactions.
ECONOMIC IMPACT
IT changes both the relative costs of capital and the costs of information.
IT lowers market transaction costs for firm, making it worthwhile for firms
to transact with other firms rather than grow the number of employees.
IT can reduce agency costs, making it possible for firms to grow without
adding to the costs of supervising, and without adding employees.
POSTINDUSTRIAL ORGANIZATIONS
Can ally with suppliers, customers to create and distribute new products
and services.