Management Information System

Explain the Application of MIS in Banking?

Application of MIS in Banking
A bank acts as a place, where the financial services are offered, which may include
provision for the retail banking, investment banking, personnel banking etc.
The factors which the customers consider before choosing a particular bank can be
summarized as follows
a. The ease of doing the business.
b. The quality of the personnel and the service.
c. The range of the financial services.
The following points should necessarily be addressed during the designing of an MIS
for a bank
a. Customer database
The factors which greatly influence the service expectations and the perceptions
can be summarized as follows
i. Customer
ii. Operator
iii. Range of the service which is being or is to be provided
iv. Class of the customers
v. Working hours
b. Service to the account holders
The Management Information Systems must give the following reports to the
management:
i. The non-moving account.
ii. The account with the balance more than say Rs. 50,000/iii. The account going down below the minimum balance.
iv. The routine payments not made.
v. The routine credits not arrived.
vi. The defaults on loan repayment.
vii. The delays on crediting cheques amounts.
viii. A sudden rise and fall in the account movement.
c. Service for business promotions
The Management Information Systems should lay a great stress on the collection of
the data from the various sources, in order to analyze and conclude the future
business strategy.
With the help of such information, banker is able to move out to talk to the
customer and as a result of this; he is also able to get some type of business for the
bank.
So it can be said that it is very important to have an in depth knowledge about the
trend in the business industry.

Management Information System (MIS) in Banking Sector In a banking

business environment characterized by a battle for the customer, where the need to
grow in volume has given way to selective growth strategies (rather than messages
about a slowing 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 their capacity 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 focus on those making the greatest
contribution to the margin while at the same time that working on the profitability of
those who at present contribute less.
MIS (Management Information System)
MIS Means Management information system, Use and manages information systems
to revitalize 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 helps management in
making, carrying out and controlling decisions. In effect, a project/ program
monitoring system is a Management Information System that provides information
for making decision by the management. In the design of the MIS the following six
basic stages of a MIS, ordered sequentially, have been followed 1. Identification of
the information needs 2. Collection of information 3. Classification of the information
collected 4. Storage 5. Retrieval 6. Analysis 7. Decision
Key elements of MIS are Internet technologies as platform for business and
commerce, Collaboration processes among all business stakeholders in networked
enterprises, Global markets and the international dimension, Foundation Concepts,
Decision support in Business and 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
study as it caters to many segments of the society (urban and rural) and offering a
diversified 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 all
transactions of every individual or corporate. One cannot ignore the fact that every
record / data should have a reliable back-up in case of any uncertainty like System
Better-relate to our theoretical knowledge Better understanding of a
renowned company which uses MIS extensively and forms a 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 departments for diverse
activities appropriately While computers cannot create business strategies by
themselves they can assist management in understanding the effects of their
strategies, and help enable effective decision-making. MIS systems can be used to
transform data into information useful for decision making. Computers can provide

financial statements and performance reports 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 decision makers. Not only do MIS allow for the collation of vast
amounts of business data, but they also 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 faster decision making and quicker
reflexes for the enterprise as a whole.