Information System Used in Financial Institutions

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2010

Information Systems for Managers
Financial & Accounting Information Systems Banking & Financial Services This report gives an insight into the Finance & Accounting Information Systems used in the sector of Banking & Financial Services. With respect to the same, the report also gives an idea into the systems in general, as also with respect to the State Bank of India. Finally, it ends with giving the conclusion regarding the use of these information systems.

Ishan Parekh MBA (tech.) - Manufacturing Roll No. # 315
11/8/2010

Table of Contents

INTRODUCTION TO INFORMATION SYSTEMS FOR MANAGERS INTRODUCTION TO FINANCE & ACCOUNTING (F & A) INFORMATION SYSTEMS STATE BANK OF INDIA – BACKGROUND SBI – HISTORY OF IT FINANCE & ACCOUNTING INFORMATION SYSTEMS – MODULES CORE BANKING TRADE FINANCE CAPITAL MARKETS & TREASURY COLLATERAL FOREX GENERAL LEDGER ACCOUNTING BENEFITS CONCLUSION - SBI CONCLUSION – FINANCE & ACCOUNTING INFORMATION SYSTEMS APPENDIX INDEX REFERENCES

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Introduction to Information Systems for Managers Information Systems for Managers (ISMs) are interactive systems, which combine the human and machine interfaces, supporting in making decisions for users within and outside the traditional organisational boundaries. Daily operational activities plus various decisions such as current and future tactical ones with respect to the organisation’s overall strategic direction are supported by these systems. These information systems comprise of different functional and constitutional perspective; depending upon their classification based upon either their functions or the business group they intend to serve. (Laudon & Laudon, 2008)

Introduction to Finance & Accounting (F & A) Information Systems F & A information systems are helpful by combining the practice and study of accounting with information systems with respect to their design, implementation and monitoring. Traditional accounting methods are combined with modern IT resources together in such systems, which help users to successfully manage their organisations by providing the necessary financial information. As explained by Henson, Walter; in his article, regarding, Accounting Information Systems, various business functions ranging from the main accounting transaction processing systems to the more advanced financial management planning and its processing systems; are all covered under F & A Information Systems. The process of financial reporting starts in an organisation at its operational levels, where the Transaction Processing Systems (TPS) record various important events in business which may include production, purchasing, and selling activities. These records by the TPS are later classified and summarised for the purpose of decision making (internal) and secondly, for external financial reporting. Advanced analysis for various purposes such as tracking of performance and improvements in resource allocation can be provided by such F & A Information Systems. They are also used to help managers to allow and assist them in various activities including planning, monitoring and maintaining proper control for a variety of activities. As a result, access to statistical analysis and various advanced reporting is allowed to managerial-level employees. Alternatively, these systems gather information, and help in developing various possible scenarios and then, choose an optimal answer among the alternative scenarios. (Henson, 2009)

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State Bank of India – Background The State Bank of India (SBI) is the largest and oldest bank in India. Its total assets account to more than $250 billion USD Figure 1 - Assets of SBI in US$. SBI’s network of branches is the third-largest all over the world Figure 2 - No. of Branches of SBI. Moreover, it is located internationally in 32 countries with 84 international branches and around 8,500 ATMs. SBI also owns either a controlling or a complete interest in...
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