1.

0 Introduction:
Market information systems (otherwise known as market intelligence systems, market
information services, or MIS, and not to be confused with management information systems)
are information systems used in gathering, analyzing and disseminating information.
A marketing information system (MIS) is an essential tool for translating raw data to useful
information. It is evident that managers need a wide range of relevant strategic information,
domain knowledge, and assistance with systematic strategic analysis to overcome their
limitations in the process of marketing strategy development.
The banking industry has been undergoing a tremendous change in the past few years. There
are many changes in the number and variety of products offered because of the branching or
mergers and acquisitions of banks. The intensity of competition and information technology
growth within a harsh environment has led to restructuring of retail banking industries.
Recent advances in information systems technologies i.e. ATM (Automated Teller Machine),
E-banking etc. offer new ways of managing banks relationships within international banking
environment.
The banking industry as a part of financial industries faces high risk in its operations and
decisions because of money transactions. On the other hand, technological innovations
reduced both geographic and economic barriers to competition and created additional
dimension of uncertainty within the financial industry. Throughout our research, it is apparent
that marketing information system in Dhaka Bank may provide better advantages over other
competitors.

Overview of Dhaka Bank Limited:

Bangladesh economy has been experiencing a rapid growth since the '90s. Industrial and
agricultural development, international trade, inflow of expatriate Bangladeshi workers'
remittance, local and foreign investments in construction, communication, power, food
processing and service enterprises ushered in an era of economic activities. Urbanization and
lifestyle changes concurrent with the economic development created a demand for banking
products and services to support the new initiatives as well as to channelize consumer
investments in a profitable manner. A group of highly acclaimed businessmen of the country

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grouped together to responded to this need and established Dhaka Bank Limited in the year
1995.
The Bank was incorporated as a public limited company under the Companies Act. 1994. The
Bank started its commercial operation on July 05, 1995 with an authorized capital of Tk.
1,000 million and paid up capital of Tk. 100 million. The paid up capital of the Bank stood at
Tk 1,547,402,300 as on December 31, 2007. The total equity (capital and reserves) of the
Bank as on December 31, 2007 stood at Tk 3,125,688,713.The Bank has 41 branches and 1
Business Center including 2 Offshore Banking Units across the country and a wide network
of correspondents all over the world. The Bank has plans to open more branches in the
current fiscal year to expand the network.
The Bank has a total number of 50 branches and 1 Off Shore Banking Unit at DEPZ Savar
Dhaka, 7 SME Service Centers, 1 Klosk (Business Center) and 1 Central Processing Centre
as of March 2010. and plans to open more by the end of 2010 to expand its network.
The Bank offers the full range of banking and investment services for personal and corporate
customers, backed by the latest technology and a team of highly motivated officers and staff.
The Bank has launched Online Banking services (i-Banking), joined a countrywide shared
ATM network and has introduced a co-branded credit card. A process is also underway to
provide e-business facility to the bank's clientele through Online and Home banking
solutions.

2.0 Objectives:
In a nutshell, the main objectives of MIS in banking

Standard data classification for recording financial events.

Internal controls over data entry, transaction processing, and reporting; and
Common processes for similar transactions and a system design that eliminates
unnecessary duplication of data entry.

During the last decade, banks applied IT to a wide range of back and front office tasks in
addition to a great number of new products. The major advantages for the bank to implement
IT are:
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Availability of a wide range of inquiry facilities, assisting the bank in business

development and follow-up.

Immediate replies to customer queries without reference to ledger-keeper as terminals

are provided to Managers and Chief Managers.

Automatic and prompt carrying out of standing instructions on due date and
generation of reports.

Generation of various MIS reports and periodical returns on due dates.

Fast and up-to-date information transfer enabling speedier decisions, by

interconnecting computerized branches and controlling offices.

Significant cost benefits, time savings, productivity gains and process re- engineering
opportunities are associated with the use of data warehouse for information
processing.
Data can easily be accessed and analyzed without time consuming
Manipulation and processing.
Decisions can be made more quickly and with confidence that the data are both timerelevant and accurate.
Integrated information can be also kept in categories that are meaningful to profitable
operation.
With automation, service no longer remains a marketing edge with the large banks
only. Small and relatively new banks with limited network of branches become better
placed to compete with the established banks, by integrating IT in their operations.
The technology has commoditizing some of the financial services. Therefore the
banks cannot take a lifetime relationship with the customers as granted and they have
to work continuously to foster this relationship and retain customer loyalty.
The technology on one hand serves as a powerful tool for customer servicing, on the
other hand, it itself results in depersonalizing of the banking services. This has an
adverse effect on relationship banking. A decade of computerization can probably
never substitute a simple or a warm handshake.
In order to reduce service delivery cost, banks need to automate routine customer
inquiries through self-service channels. To do this they need to invest in call centers,
kiosks, ATMs and Internet Banking today require IT infrastructure integrated with
their business strategy to be customer centric.

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3.0 Methodology:
Primary method of this report has collected from the employee of the Dhaka Bank
head office only by face to face interview.

The secondary data we have collected by browsing the internet & various online
sources and also the official websites of Dhaka Bank.

4.0 Limitations:
Our study was mainly limited by the following factors.

Shortage of time.
Difficulties to disclose the data.
Lack of coordination due to communication problems.

5.0 Literature Review:

The information system of the banks plays a vital role in collection, analyses

and

dissemination of the information across the departments of the bank and the outside users of
the banks. The modern banking system is totally dependent on the information systems. It
does not only let the banks manage the departments well but also have an increase in the
consumer satisfaction, revenue and productivity. The online banking is one of the aspects of
the Information technology. The banks can bank anywhere in the world via the online
banking. The online banking makes the communication fast and smooth through its modern
technology. The future of the Bangladesh banking is the online banking. To mitigate the
cumbersome process of the traditional banking system, the online banking lets the customers
transact with bank via online or using internet, using mobile, PDA or laptops. The online
banking system allows the customers pay bill, open account, apply for the loan, business to
business payments. For the configuration of the online banking, the can have the components
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internally or they can outsource the components from the sources like another financial
institution, internet service provider, internet banking software vendor, credit scoring
company. In addition to traditional banking products and services, banks can provide a
variety of services that have been designed or adapted to support e-business. Management
should understand these services and the risks they pose to the institution. These are the most
common support services: web-banking, account aggregation, electronic authentication,
website hosting, payments for e-commerce and wireless banking activities. There are about
48 banks are operating their business in the country. Among them 4 are nationalized
commercial banks, 4 specialized banks, 30 private commercial banks, 10 foreign banks. The
nationalized banks are huge and their network covering almost every upazillas of the country
but they are still to adopt the online banking technology. The situation is the same for the
specialized banks and some first generation commercial banks. On the other hand the third
generation private commercial banks and some 2nd generation banks are very much
aggressive to adopt this new technology. Dutch-Bangla bank, a third generation private
commercial bank can be called the pioneer in this sector. Some other mentionable banks are
Prime bank, Brac bank, premier bank, Dhaka bank, Trust bank, Eastern bank. But the no. of
user of the online banking is less. A study done on 1000 existing customer (Dutch
Bangla bank-200, Prime bank-200, Brac bank-200, Premier bank-200, the trust bank-100,
Eastern bank-100) of the above-mentioned banks shows that the customers using the online
banking services are not as per expected. As the information technology is getting easily
available to the different users, the vulnerability to the IS is also increasing at the same time.
For tackling that vulnerability some guidelines should be followed by the banks which are
given by the Bangladesh Bank. The information should be protected from that of hackers. IT
Management must ensure that the IT functions are efficiently and effectively managed. They
should be aware of the capabilities of IT and be able to appreciate and recognize
opportunities and the risk of possible abuses. They have to ensure proper maintenance of
appropriate system documentations, particularly for systems, which support the financial
reporting. The commercial banks should maintain the ICT policy adopted by the Bangladesh
Bank. Every bank having IT systems must have an IT POLICY which must fully comply
with this IT Guideline and be approved by the Board of the bank. For foreign banks the
document must also be in conformity with their global policy document.

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6.0 Theoretical Background:

Information System
An information system can be defined technically as a set of interrelated components that
collect (or receive), process, store, and distribute information to support decision making and
control in an organization. In addition to supporting decision making, coordination and
control, information systems may also help managers and workers analyze problems,
visualize complex subjects and create new products.
Types of Information System:
There are three principal types of information system. They are

TPS

A transaction processing system is also referred to as TPS; it is a form of an information

system which collects, stores, modifies, and also retrieves an enterprises data transactions.
The transactions are considered to be any event that has passed the ACID test in which
information has been generated or modified before being stored in an information system.
With a transaction processing system companies are able to process transactions faster which
ensure that they have a smooth flow of information and a smooth progression of processes
throughout the company. Some of the characteristics that are transaction processing systems
have included rapid processing, reliability, standardization, and controlled access.

MIS

A marketing information system (MIS) is a way to manage the vast amount of information
firms have on handinformation marketing professionals and managers need to make good
decisions. Marketing information systems range from paper-based systems to very
sophisticated computer systems. Ideally, however, a marketing information system should
include the following components.

A system for recording internally generated data and reports

A system for collecting market intelligence on an ongoing basis

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Marketing analytics software to help managers with their decision making

A system for recording marketing research information.

DSS

Decision support system (DSS) is a computer-based information system that supports

business or organizational decision-making activities. DSSs serve the management,
operations, and planning levels of an organization and help to make decisions, which may be
rapidly changing and not easily specified in advance.
DSSs include knowledge-based systems. A properly designed DSS is an interactive softwarebased system intended to help decision makers compile useful information from a
combination of raw data, documents, personal knowledge, or business models to identify and
solve problems and make.

The independence between organizations and information system

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Hardware is the physical equipment used for input, processing, and output activities in an
information system. It consists of the following: computers of various size and shapes,
various input, output and storage devices; and telecommunications devices that link
computers together.
Software consists of the detailed, preprogrammed, instructions that control and coordinate
the computer hardware components in an information system.
Data management technology consists of the software governing the organization of data on
physical storage media.
Networking and telecommunications technology, consists of both physical devices and
software, links the various pieces of hardware and transfers data from one physical location
to another.

Information systems are more than computers

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Using information systems effectively requires an understanding of the organization,

management, and information technology shaping the systems. An information system
creates value for the firm as an organizational and management solution to challenges posed
by the environment.

Levels in a firm

Business organizations are hierarchies consisting of three principal levels: senior

management, middle management, and operational management. Information systems serve
each of these levels. Scientists and knowledge workers often work with middle management.

The two-way relationship between organizations and information technology

Informatio
n
Technolog
y

Organizati
ons

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This complex two-way relationship is mediated by many factors, not the least of which are
the decisions made-or not made-by managers. Other factors mediating the relationship
include the organizational culture, structure, politics, business processes, and environment.

Database

A database is a collection of data organized to serve many applications efficiently by

centralizing the data and controlling redundant data. Rather than storing data in separate files
for each application, data are stored so as to appear to users as being store in only one
location.

Database Management Systems

A database management system (DBMS) is software that permits an organization to

centralize data, manage them efficiently, and provide access to the stored data by application
program. The DBMS acts as an interface between application programs and the physical data
files.

Data Warehouse

A data warehouse is a database that stores current and historical data of potential interest to
decision makers throughout the company. The data originate in much core operational
transaction system, such as systems for sales, customer accounts, and manufacturing, and
may include data from web site transactions. The data warehouse consolidates and
standardizes information from different operational database so that the information can be
used across the enterprise for management analysis and decision making.

Data Mining

Data mining finds hidden patterns, relationships in large database and infers rules to predict
future behavior. The patterns and rules are used to guide decision making and forecast the
effect of those decisions. The type of information obtainable from data mining includes

Associations

Sequences

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Classifications

Clusters and

Forecasts.

So, information travels throughout the Asia bank in the following ways.

7.0 Types of Information System in Dhaka Bank

No single system can provide all the information an organization needs. A business
organization needs system that will support process for each of the major business functions.
Dhaka Bank Limited uses FLEXCUBE software that supports the entire business process.
The FLEXCUBE software works in three ways:

Corporate
This type of software is used by the head office to keep track their information. Senior
managers need systems that address strategic issues and long term trends both in farm and in
the external environment. Corporate helps the senior manager to address routine decisions
requiring judgment, evaluation by providing the necessary information. This corporate
system can be matched with the Executive support systems (ESS). Corporate is used within
the head office. The manager may use Corporate outside the head office for their business
purpose.
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Retail
Operational managers need systems that keep track of the elementary activities and
transactions of the organization. Retail is used for the regular transaction happened between
customer and branches. Retail is similar as Transaction Processing Systems (TPS). Retail
helps to record daily routine transactions necessary to conduct business such as:

Customer open their account from here

The customer get a 16 digit account number for opening an account

Customers make a transaction.

Information
Information is the central point for the Information System of Dhaka Bank. Information is the
combination of all information system. Information is maintained by a BO SERVER. BO
server consists of several options, like

Fund Transfer (FT)

General Ledger (GL)

Automated Teller Machine (ATM) etc.

A bank officer can search from BO server. There he will get related all information for any
purpose. But no one can change the information. BO Server also works like a Management
Information System (MIS). By using BO Server the middle manager can monitor and
control the entire business. BO Server provides middle managers with reports on the
organizations current performance. The managers can maintain entire banking functionality
by using BO Server. In case of international transaction SAM (Swift Alliance Messenger) is
used by the manager to monitor client history. SAM has two dimensions. In lives all the
current data is stored and in archives all the important old data is stored. Manager can use this
SAM in their international transactions to maintain accuracy and take decision.

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The Database Approach to Data management

Dhaka Bank maintains an Information System network that cover each of the major business
functions. The Information System of Dhaka Bank can be shown by the help of a diagram.

Information system of Dhaka Bank

The above diagram represents the total information system of the Dhaka Bank. Here the I.T.
server is the central database of the bank. It also can be called the Data Warehouse which
stores current and historical data of the bank. Each of the branch servers can be called as a
Data Mart which is subset of the central data warehouse. The central server stores the entire
data store in the branch server automatically. The central server is located in the head office
of the Dhaka Bank. This main server is maintained by the IT department of the bank. This
department gives the software and hardware supports to different departments of the bank. As
Dhaka Bank is engaged in online banking, the role of IT is very crucial for the bank. This
department is the most active department of DBL where employees always stand by to solve
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any problems in the system. The managers and executives of IT division work continuously
to develop the total IT system of DBL so that it can be operated with ease, accuracy, and
speed. Since its journey as commercial Bank in 1995 Dhaka Bank Limited has been laying
great emphasis on the use of improved technology. Each branch contains a Data Mart which
keeps tracks the daily transactions and stores it on its own server regularly. Each mart also
sends the information instantly to the main server automated throughout software.
When any employee opens an application on his computer in any branch such as branch A or
branch F, OB server is displayed in front of him. This OB Server helps the employees to see
all the record regarding the clients such as his credit card number, his account balance, his
nomine and all other information. As the employee give any impute to the client account it is
shown in the OB Serve. After permitting by the authorized person the information is stored in
the branch serer and it also automatically stored in the main I T server. For example a client
deposits 10,000 tk in his Dhaka Bank account in Mirpur branch. When the employee gives
impute of 10,000 tk on the client account it will show in the OB Server. As the authorized by
the legal person, the money is deposited on the client account and he can with draw this
money from any ATM booth because this deposit information is stored in the central IT
Sever.
Dhaka Bank provides 16 digit codes for the account number of their clients. Each code
contains the bank code, product code and the account number. This can be cleared by
providing a example. Suppose Mr S open an account in Dhaka Bank. The bank gives him the
following code:

Those three codes helps bank to store all the information in the data base according to their
appropriate manner.

Data Mining
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Managers of Dhaka Bank can easily retrieve any information required from the central server
through the OB Server. They can collect information there but they cannot change or modify
any information there. In OB Server there is a General Leisure which helps the manager to
find out the data in different pattern such as sequences, classification, cluster etc.

The main Softwares that DBL uses

DBL uses the following software for maintaining their daily activeties:
Flexcube
DBCube
SWIFT Manager

Word
Excel
El Dorado
Dhaka Bank Server
Nikash
UNIX
Western Union
Dhaka Bank Foreign Trade

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Benefit of Information System in different of Dhaka Bank

Information system allows the employees of Dhaka Bank to perform their daily activities as
accordingly. The employees can easily get the related information regarding the clients by
suing the BO Server. In case of transitions of other banks, the GL helps the bankers to
maintain the data base. Every bank has a swift code. This code is necessary when a bank is
involved in transactions with other bank and outside the country. The information system
maintains this swift code in keeping all the transactions and helps the bank in providing the
identity.
The top level manager can easily monitor the risky are of the business by monitoring the
balance sheet provided by the GL through the information system. They can take the future
decision for the information provided by GL. This all think only be happen by the help of a
proper information system.

Recommendations:
Actually we have got an overall idea about banking activities of Dhaka bank from that report.
However here is some recommendation for Dhaka bank in order to perform banking activities
more efficiently than competitor in competitive business market as well taking business
decision quickly.

It should develop decision support system that supports non routine decision making
for middle management.
To get competitive advantage, the bank should emphasize on customer relationship
management system.
The bank should develop knowledge management system.
Using information system, it should follow a standard using information system like
FIP (fair information practice).
It can open mobile banking system.
It should insist on security policy in a way on unauthorized person enter the system.

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Conclusion:
Finally we can say that in the competitive business world, business activities are becoming
simple when we are using information system. So the bank, Dhaka has to introduce some
especial types of software and installing quickly to provide modern banking service than
competitor. If it can, then the process of banking activities would be so faster and achieve
some competitive advantage than competitor

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