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E-Banking Inside a Bank

E-Banking besides affecting the outlook of bank has also significantly influenced the ways in which bank manager interact with his colleague and the way he carries out his routine duties. A CBIS (Computer Based Information System) is now considered a primary need of every modern commercial bank. A CBIS is a system that automates the process of recording transactions, posting entries, updating accounts, and balances, generating reports and reviewing results, Following are some components of CBIS.

1- MIS (Management Information System)

A good MIS is that fulfils all information need of management well in time. Not only the information is important but also the style and mode in which information is presented is also crucial in deciding the worth of information. E-Banking make use of the MIS to increase the managerial capabilities and operative efficiency of bank managers and employees.
As Information need vary along the levels of management so normally the organization has three levels of MIS. These are as follows:

• Strategic MIS
• Tactical MIS
• Operational MIS

2- DSS (Decision Support System)

It is a system that helps the management to find solution of unstructured problems. Such problems have long-term effects and they are poorly defined. They are complex in nature and involve a greater degree of uncertainty. In terms of banking we can take examples of portfolio investments, future gain on mutual fund, growth of micro financing in the society, chances of success of an energy project etc. Such decisions require bank management to apply professional and sophisticates techniques to analyse all components of problems before finding a solution. DSS helps to produce and present information n such a way that make decision making easy in risky circumstances.

3- EIS: (Executive Information System)

An EIS is the system that allows an opportunity to an executive to peep behind the final reports and figures. It provides a higher-level executive with an insight in bank’s affairs and conduct of employees. It allows a bank manager to scan the branch environment to locate any inefficiency or rigidity. It also provides an ease to view same information from different angles and perspectives.

4- TPS and RGS: (Transaction Processing System / Report Generating System)

TPS means the system that automates the process of recording transitions. If you have been a regular visitor to a bank you must have notices that previously you would have to wait in line when you go to deposit amount in your account. The bank employees would record amount, manually on various big registers. The client waits as the bank employees fumble with lots of hefty journals and ledgers to find the correct one. And now look at the current state of affairs. Just two signatures in the pay in slip and a little jerk of finger on keyboard and every thing is completed. Transaction is recorded, entries made, amounts posted, balance update, master file corrected in just matter of seconds, this is TPS. It also reduces the chances of clerical mistakes and errors, Similarly the report generation system also help in quick production of all kinds of report and data.

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Added: Sunday, February 22, 2009

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