Presentation on "MIS in Finance" by Shabbir Akhtar (PGPM 10, Globsyn Business School - Global Campus) for the subject "Management Information System"

1. MIS in Finance
Presented by – Shabbir Akhtar
(PGPM 10, Globsyn Business School – Global Campus)
MIS in Finance

2. State Bank of India
World's Largest
Centralized Core Processing
Implementation
Case Study

3. Overview
• Founded as bank of Bengal in 1806 and today
largest bank on earth in terms of
branches, accounts and other metrics
• SBI consists of itself plus 7 associate banks
• Total of 17385 branches in India, 20000 ATMs
• Employee strength : 205000
• Asset of USD271 billion incl. associate banks

4. State Bank of India – IS
• In 1991, bank undertook computerization
initiative using KINDLE BANKMASTER to be
deployed in largest branches
• Used a standalone IBM mainframe for
interbranch re-conciliation
• In2003, rolled out internet banking

5. Decision to Migrate to Core Systems
• Customers did business with branch not bank
• Losing corporate customers
• Due to technology dis-advantage, bank was
loosing deposit share (26%-23%)

6. Selection of TCS BaNCS
• TCS group included Hewlett-Packard, Financial
Network Services (FNS), and China Systems
• 24x7 availability providing customer service
• Online real time internet banking
• Faster product launches
• Primary data centre set up – Mumbai
• Duplicate set up – Chennai

7. Implementation Milestone
• TCS set up team of domain
experts, architects, product experts
• TCS people trained employee of SBI
• 58 training centres
• More than 175000 employees trained
• Processing results: 1577 transactions/second

8. Reports

9. Grameen Foundation
Improving Lives Through
Better Microfinancing
Case Study

10. The Need
• Banking services not available to those wanting to raise their
standard of living
• Even a small amount of money can become a source of
subsistence
• Conventional banks cannot cover costs dealing with such
small sums
• People are often forced to turn to unregulated local
moneylenders who charge huge interest
• The microfinance movement was born in the 1970s
• MFIs now serve nearly 18% of the population, with
approximately 188 million accounts

11. The Problem
• MFIs operate very differently from conventional financial
institutions
• MFI representatives travel to villages and meet with them at
home or in village meetings
• Simple spreadsheets or even handwritten paper records are
often used to handle transactions
• Information is often inaccurate due to recording and data
entry errors
• Bank management does not have visibility into the actual cash
position of branches

12. The Solution
• Conventional integrated banking is neither suited to nor
affordable for MFIs
• MFIs need simplicity, low maintenance, low cost and the
flexibility to run on various hardware platforms
• Need to increase visibility, roll out new products
faster, efficiently add new customers and branches, and raise
capital — all important factors
• Need the ability to centralize information in order to grow the
business

13. The Solution Provider
• Grameen Foundation was formed to address this need
• With a mission that included finding ways to use technology
to better deliver microfinance services
• The Foundation set out to develop a software platform
designed specifically for the needs of MFIs
• IBM teamed with Grameen to take the first, Foundation-
developed version of Mifos to the next level
• IBM engineers worked closely with Foundation developers
• The team made use of the Eclipse Web Tools Platform
development environment, an open-source toolkit originally
developed by IBM

14. The Implementation
• Grameen Foundation and IBM worked closely with Grameen
Koota, an MFI serving parts of India
• Its legacy systems were spread across 46 branches and there
was no centralized data or application repository
• Skepticism among the local Grameen Koota branches existed
• The deployment experience provided valuable
lessons, highlighting key considerations for the industry
• Three important things learnt:
– First, data migration is key
– Second is the need to adapt to the new technology
– Third is the need to align business processes with the technology

15. The Result
• Grameen Koota field representatives can now record
transactions as they are conducted
• This information, updated in real time, makes it possible to
produce reports much more quickly
• The bank now knows its cash position at the close of each day
• Field representatives can carry less cash, increasing efficiency
• New products can be introduced very easily now, it takes just
three days
• Grameen Koota now serves some 400,000 customers, and is
on course to reach its goal of two million within five years

16. The Reports

17. Thank You
MIS in Finance