Management Information System (MIS) in Banking Sector

In a banking business environment characterized by a battle for the customer, where the needto
grow in volume has given way to selective growth strategies (rather than messages about
aslowing of new business), an undeniable competitive advantage is provided by robust,reliable
and useful systems for measuring customer profitability or value, both current
and potential, in connection with budgeting and pricing methodologies. This is due both to
theircapacity to identify where to generate value and to the capacity to direct the actions
of branches and sales staff, identifying the real profitability of each customer in order to focuson
those making the greatest contribution to the margin while at the same time that workingon the
profitability of those who at present contribute less.
MIS (Management Information System)
.
MIS Means Management information system, Use and manages information systems torevitalize
business process, improve business decision making with information technologies,gain
competitive advantage on the market.As described by World Bank, Management Information
System (MIS) is a system that helpsmanagement in making, carrying out and controlling
decisions. In effect, a project/ programmonitoring system is a Management Information System
that provides information formaking decision by the management. In the design of the MIS the
following six basic stagesof a MIS, ordered sequentially, have been followed1. Identification of
the information needs2. Collection of information3. Classification of the information collected4.
Storage5. Retrieval6. Analysis7. Decision
Key elements of MIS are Internet technologies as platform for business and
commerce,Collaboration processes among all business stakeholders in networked enterprises,
Globalmarkets and the international dimension, Foundation Concepts, Decision support in
Businessand Banking, Information technologies and Banking applications, An approach to
computing,Systems and information channels and Developing business
Objectives
.

The MIS of Bank whose branches are so well-spread becomes a pivotal point of studyas it caters
to many segments of the society (urban and rural) and offering adiversified portfolio of services
like credit cards, loans, bank accounts, etc... Thus,
it becomes absolutely essential for a bank to maintain an accurate mass record of alltransactions
of every individual or corporate. One cannot ignore the fact that everyrecord / data should have a
reliable back-up in case of any uncertainty like System
Crashing, Virus Affected, etc...

Better-relate to our theoretical knowledge

Better understanding of a renowned company which uses MIS extensively and formsa part of its
core activities, without the efficient management of which it
would become Gain knowledge on the different types of MIS used in various departmentsfor
diverse activities appropriately.

While computers cannot create business strategies by themselves they can assistmanagement in
understanding the effects of their strategies, and help enable effectivedecision-making. MIS
systems can be used to transform data into information usefulfor decision making. Computers
can provide financial statements and performancereports to assist in the planning, monitoring
and implementation of strategy.

MIS provide a valuable function in that they can collate into coherent reports
Unmanageable volumes of data that would otherwise be broadly useless to decisionmakers.

Not only do MIS allow for the collation of vast amounts of business data, but theyalso 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 fasterdecision making and quicker reflexes for the
enterprise as a whole.
MIS in the Banking Sector of Bangladesh
.
Traditionally, MIS has been viewed by its practitioners as playing only a supportive
role.Recently, however, due to a significant decline in the cost of information technology (IT)
andgreatly improved speed and power of computers, MIS moved from its traditional role as
anapplication of back office support to one offering opportunities for gaining
significantcompetitive advantage. It is being increasingly viewed as having the capability to alter
coreorganizational directions, reorient corporate strategy, and redefine industry structure.In
recent years, there has been increased awareness among organizations of the potential ofIT and
use of MIS to exploit its potential and use it effectively. Many successful localfinancial
institutions like Eastern Bank Ltd., The City Bank Ltd, Brac Bank have clearlydemonstrated that
information systems and technologies can be a powerful competitiveweapon that can be used to
capture market share, improve customer service, reduce operatingcosts, and create new products
and services.
Finally
There is a significant need for determining the role of MIS in banks. This would assure thetop
management that the MIS development is in the right direction. This would also help inexploring
the intended and the real role of MIS in banks. The knowledge of the real role ofMIS in banks
would help MIS managers in managing information systems by judging

the business needs of the MIS projects, associated risks, importance and ranking of MISmanager
s in organizational hierarchy, need for innovation and flexibility in MIS planningapproach, etc.
The MIS practitioners may use the variables used here for self-evaluation andfor deciding about
the IS development.Foreign and few private banks, though in the strategic group today, have to
constantly trackMIS for strategic advantage to maintain their position. Sustaining competitive
advantage isvery difficult, because MIS managers have to continuously evaluate the bank's
applications portfolio with respect to technology and their competitors. Public sector banks have
to searchfor ways to shift from support group to the strategic group in order to enjoy a
strategicadvantage from the use of MIS. In order to achieve this objective, they may have to
formulatea different MIS strategy so as to make them competitive enough to survive.
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