INFORMATION SYSTEM STUDY REPORT OF

STANDARD CHARTERED BANK

FOR THE SUBJECT

MANAGEMENT INFORMATION SYSTEMS (HS-107)

GROUP MEMBERS

S R .# N AME
1
2

R OLL N UMBER

ARSALAN ATA KHAN

MUHAMMAD UMER

2009-CE-124
2009-CE-137

SUBMITTED TO
MUZAMMIL AHMAD KHAN
ASSISTANT PROFESSOR
COMPUTER ENGINEERING DEPARTMENT
COMPUTER ENGINEERING DEPARTMENT
SIR SYED UNIVERSITY OF ENGINEERING AND TECHNOLOGY
KARACHI

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

ACKNOWLEDGEMENT
First of all, we are thankful to Almighty ALLAH (The most Gracious and the most Powerful, the
knower of seen and unseen), for giving us courage and power to learn and to apply our knowledge
for the benefits of mankind.
We would like to express profound gratitude to our advisor, Mr. Muzammil Ahmed Khan and
Mr. Muhammad Kashif Shaikh, for his invaluable support, encouragement, supervision and useful
suggestions throughout this project work. His moral support and continuous guidance enabled us to
complete our work successfully and patiently guided us in this project and never accepting less than
our best efforts.
We would also like to show our gratitude to all the staff members of Standard Chartered bank of
Pakistan especially Mr. Abdul Azeem Qureshi and Mr. Aamir Saleem who devoted us their precious
time to accomplish this task.
At last but not the least, we would like to thank our family, for their consistent support and faith,
which enables us to complete this project.

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

T ABLE O F C ONTENT
S.N O T ITLE

OF

H EADING

P AGE N O

1.

Introduction

2.

Introduction to Standard Chartered Bank

3.

Services offered by Standard Chartered Bank

4.

Information Systems in Standard Chartered Bank

10

5.

Description of Departments in SCB

11

6.

IT Department in SCB

13

7.

Hierarchy of IT Department

14

8.

Detail of IT Department

14

9.

Data Flow Diagram of Main Function

20

10.

Suggestions for Improvement in the Organization

22

11.

Conclusion

22

Appendices
Minutes of Meeting

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

I NTRODUCTION
Information is the basis for every decision taken in an organization. The efficiency of management
depends upon the availability of regular and relevant information. Thus it is essential that an
effective and efficient reporting system be developed as part of accounting system.
The main object of management information is to obtain the required information about the
operating results of an organization regularly in order to use them for future planning and control.
The old techniques like intuition, rule of thumb, personal whim and prestige, etc. Are now
considered useless in the process of decision taking. Modern management is constantly on look out
for such quantitative and such information, which can help in analyzing the proposed alternative
actions and choosing one as its decision.
Thus, modern management functions are information-oriented more popularly known as
management by information. And the system through which information is communicated to the
management is known as management information system (MIS).

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

I NTRODUCTION O F S TANDARD C HARTERED B ANK

I NTRODUCTION
Standard Chartered has a history of over 150 years in banking and operates in many of the world's
fastest-growing markets with an extensive global network of over 1,600 branches (including
subsidiaries, associates and joint ventures) in over 70 countries in the Asia Pacific Region, South
Asia, the Middle East, Africa, the United Kingdom and the Americas.
As one of the world's most international banks, Standard Chartered employs 70,000 people,
representing over 125 nationalities, worldwide. This diversity lies at the heart of the Bank's values
and supports the Bank's growth as the world increasingly becomes one market.
With strong organic growth supported by strategic alliances and acquisitions and driven by its
strengths in the balance and diversity of its business, products, geography and people, Standard
Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East.
Standard Chartered derives over 90 per cent of profits from Asia, Africa and the Middle East.
Serving both Consumer and Wholesale Banking customers worldwide, the Bank combines deep
local knowledge with global capability to offer a wide range of innovative products and services as
well as award-winning solutions.
Standard Chartered is also committed to all its stakeholders by living its values in its approach
towards managing its people, exceeding expectations of its customers, making a difference in
communities and working with regulators.

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

H ISTORY O F S TANDARD C HARTERED B ANK

Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of
British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China,
founded in 1853.
THE CHARTERED BANK:
The Chartered bank was founded by James
Wilson following the grant of a Royal Charter
by Queen Victoria in 1853. Chartered bank
opened its first branches in Mumbai (Bombay),
Kolkata and Shanghai in 1858, followed by
Hong Kong and Singapore in 1859.
THE STANDARD BANK:
The Standard bank was founded in the Cape
Province of South Africa in 1862 by John
Paterson. The bank commenced business in Port
Elizabeth, in January 1863.
STANDARD CHARTERED BANK IN PAKISTAN:
Standard Chartered Bank (Pakistan) Limited is Pakistan's oldest and largest foreign bank with over
176 branches in the country. The history of Standard Chartered in Pakistan dates back to 1863, when
the Chartered Bank of India, Australia and China first established its operations in Karachi. The year
2006 marked the beginning of a major transformation for Standard Chartereds operations in
Pakistan. It was during this year that the Bank announced its acquisition of Union Bank, one of the
best private sector banks in Pakistan.

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D
The US$ 487 million, the largest ever transaction in Pakistans banking history, spearheaded the
establishment of Standard Chartered Bank (Pakistan) Limited (SCBP), the first international bank in
Pakistan to be locally incorporated. The acquisition effectively cemented our position as the largest
and fasted growing international bank in Pakistan: Standard Chartered is now the 5th largest bank in
terms of revenue and operating profit.
In early 2007, the combined bank had 115 branches across 22 cities in Pakistan. A year later, by mid
2008, the bank has 176 branches across 41 cities. Our geographic footprint growth has led the Bank
in becoming a part of the social and economic fabric of the country, positioning us to deliver on our
vision of Being the best locally embedded international bank.
The bank now has over 176 branches across over 41 cities of Pakistan.

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

S ERVICES O FFERED B Y S TANDARD C HARTERED

C ONSUMER B ANKING
Standard Charted provides services for

Mortgages

Credit Cards

Personal Loans

Auto Loans

Islamic Banking

Wealth Management products.

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D
In order to maximize customer convenience, they offer

24-hour Phone Banking

e-Statements

SMS Banking

ATM Cards and VISA Debit Cards

Online Banking

W HOLESALE B ANKING
Wholesale banking provides

Transactional banking

Debt Capital Markets

Corporate Finance

Derivatives & Fx Options

Commodity Finance and deposit products.

Treasury

I SLAMIC B ANKING
Standard Chartered Saadiq's dedicated Islamic Banking team provides comprehensive international
banking services and a wide range of Shariah compliant financial products that are based on Islamic
values

SME B ANKING
Standard Chartered Small Medium Enterprise (SME) banking provides services for Small to
medium size companies to expand their enterprise.

Tijarat Accounts

Business Installment Loans

Industry Specific Solutions

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

I NFORMATION S YSTEM IN S TANDARD C HARTERED

As Standard Chartered started their business in Pakistan in 2006, so they are using information
system since the start of their business in Pakistan, there were no PRE-IS era of Standard Chartered
bank in Pakistan. At the time of acquisition of Union Bank of Pakistan, the Union bank was using
their own core banking solution which was then got shifted under one system. The actual conversion
happened on 17th September 2006, when Standard Chartered cut over the Union Bank systems.
With the help of information technology Standard Chartered bank record the daily transactions that
took place from all over the Pakistan into a centralized database in real time, which means there is
no Batch processing is taking place in Standard Charted all over the Pakistan. Every bank branch is
an online branch, which is directly connected to the centralized server to keep the data up to date to
avoid any problems.
As Time is money, and due to IS standard chartered bank make thousands of transactions per day. In
fact, IS makes whole process much more quickly, simple and reliable. Due to IS employees can
easily connect with other branches, customer service gets improved, online banking emerged and lot
of others benefits.
Standard Chartered Online is an innovative Online Banking service that you can tailor to suit your
precise banking needs. It gives you convenient, round-the-clock banking services ranging from dayto-day account transfer transactions to real-time valuable financial information. Now you can
manage your finances anytime, anywhere.

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

10

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

D ESCRIPTION O F D EPARTMENTS IN SCB

B USINESS I NTELLIGENCE U NIT (B IU )

The business intelligence unit (BIU) department provides valuable information to the bank regarding
to the new products. BIU gives detailed analysis of any product data provided by Information
technology department.

L EGAL & C OMPLIANCE

The legal and compliance department is playing a very important role in this organization. The
department is responsible for all the legal work of the bank. They have to make sure whether
everything is going according to the government policies and whether or not the organization is
following all the rules of STATE BANK OF PAKISTAN.

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

11

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

C REDIT A ND C OLLECTIONS
The department is very vital in its functionality. Thats the reason why Standard Chartered pays so
much importance to it. The department performs several important functions for the organization.
Some of them are

Loans Sanction

Loans Recovery & Collection

P HONE B ANKING
Another consumer banking department which is solely responsible for phone banking issues and at
the same time they have to make sure the user is having the same level of personalized services that
would expect in branches.

C OMPLAINT M ANAGEMENT
Complaint management department is responsible for complaints received from customer via Phone,
Email, Web and providing them support on timely manners.

F INANCE D EPARTMENT
The department is very vital in its functionality. Thats the reason why Standard Chartered pays so
much importance to it. The department performs several important functions for the organization.
Some of them are

Financial Forecasting

Capital Budgeting

Credit Management

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

12

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

IT D EPARTMENT IN S TANDARD C HARTERED B ANK

As IT is playing a vital role in this organization, the bank has state of the art IT infrastructure which
is working 24/7 to ensure that everything is running smoothly and the bank systems are not exposed
to the outside world. IT Department itself is a huge department in Standard Charted bank, having
many sub departments under its area. The IT department provides services, support to other
departments as well as also acting as a backbone of the Core banking system of Standard Chartered
Bank. In broader terms the IT department is in charge of

All Communications throughout the branches & data centers, which includes Voice, Data,
Fax, Wireless mediums.

Monitoring the services of existing applications running inside the organization.

Monitoring of Critical applications, which need 99% uptime.

Providing service to on production applications

Networks and other connectivity mediums

Security of existing & new applications

Security of networks

In-house security issues

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

13

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

H IERARCHY OF IT D EPARTMENT

D ETAIL OF IT D EPARTMENT
N ETWORKS & C OMMUNICATIONS
The department is responsible for managing all the network and communication that took place
inside the bank which includes Internet, Intranet, Extranet, Voice, Fax services. The core
responsibilities of this department is

Managing existing data network.

Managing the voice network.

Managing the Fax network.

S ERVICE M ANAGEMENT
The department is responsible for providing services to the new as well as existing applications
running inside the organization. The department is also responsible for monitoring the application
uptime and providing maximum uptime to the critical applications to avoid any financial & service
loss and assigning the privileges to the employees.

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

14

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

S ECURITY & R ISK

The department is responsible for all the security issues that could happen in the existing system
which includes Internet Banking securities, network securities, external & local access etc.

T ECHNICAL S UPPORT S ERVICES

The department is responsible for all the hardwares that are placed inside the organization; they
provide support and services to any kind of hardware issues from a single desktop pc to their
servers.

B ANKING S OFTWARE S
Standard Charted has more than 80 different business softwares running to fulfill their business
needs. Each software is specifically designed for a specific department and intended to perform
some specific task in order to help the bank run their everyday business process effectively. Some
softwares are cross-functional helping different departments.

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

15

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

EBBS (E LECTRONIC B ASIC B ANKING S YSTEM )

Core banking is the heart of any organization; Standard chartered core banking application is EBBS
(Electronic Basic Banking System) which is the actual strength of this bank. EBBS is the single
software suit that work on these basic modules

Saving / Current Accounts

Customer Information System

New Accounts

Demand Deposits

Clearings

Time Deposits

Loans

Credit Lines

Automatic Transfers

Tax Information

Cashiers Checks

Construction Loans

Sensitive Accounts

Warnings

On-Line Transactions Authorizer

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

16

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

ECAP (E LECTRONIC C ARD P ROCESSING S YSTEM )

Another core banking application that Standard Chartered is using is ECAP (Electronic Card
Processing System) which is used to manage all the Credit and Debit Cards of the account holders.
The software has these two basic modules

Debit Card

Credit Card

S ERVERS O F S TANDARD C HARTED B ANK

Standard Chartered has a centralized server machines
running day and night to ensure the maximum uptime
and top-notch quality to their applications, which
dramatically support their whole business process.
The bank servers resides in different cities and data
centers of Pakistan i.e. Karachi, Lahore, Islamabad
and all of them are interconnected with each other for
real time data update and synchronization.
As a rule stated by STATE BANK OF PAKISTAN; A bank must have 3 years of customer data in
their servers. To abide this rule, Standard Chartered stores the last 3+ years of data into their local
sever which are residing in Pakistanis data centers for quick access of data and other issues.
The bank archives the old data to their Main Server in Chennai, India, which is the main server for
Middle East region. The Chennai servers holds the archived data of all the Standard Chartered
branches in Middle East region and when any branch need to access the old data; they connect to the
Chennai servers and download the required data.
Standard Chartered is using IBM servers in Pakistan. The configuration of server depends upon the
load of work it handles and the application, which is running on the server. If the application is
critical then the server is also of high configuration.

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

17

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

N ETWORK I N S TANDARD C HARTED B ANK

Networking is the milestone achieved by Standard Chartered bank, which gives the integration
between information systems of various departments. Standard Chartered is using CISCO networks
to maximize the outcome and to enhance the communication quality within their organization,
which results in the better service. Standard Chartered has different types of network configuration
for different scenarios; some of them are discussed below.

L OCAL A REA N ETWORK (LAN)

The local area network (LAN) is running inside the organization and providing ultimate connectivity
between the employees and other persons. There are some Workgroup applications also running
over their LAN for easy collaboration between the employees of same and different departments.
The LAN is not exposed to the outside world for security reasons and there is a proxy server running
for connectivity outside the organization which makes sure the internal network is not exposed to
the internet.

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

18

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

N ETWORK B ETWEEN D ATA C ENTER S

As Standard Chartered has different servers located at different areas of Pakistan, so the networking
between them is necessary. Each data center is directly connected to another data center using two
links (i.e. Radio & Optical Fiber) because if one link goes down, there is a second one to give
backup link, If a wired is cut off then the radio link is available for connectivity and if there is a
frequency block in radio link, there is a wired link to give backup to the network.
Each branch has two links, one is DXX which is connected to the nearest data center and another
link is VSAT which is connected to the second nearest data center to make sure branch keep
working if there is a problem occur in any one of the data centers.

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

19

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

D ATA F LOW D IAGRAMS (DFD)

C ONTEXT D IAGRAM

SIR SYED UNIVERSITY

OF

OF

ATM M ACHINE

E N G I N E E RI N G

AND

TECHNOLOGY

20

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

C ONTEXT D IAGRAM L EVEL -0 O F A TM M ACHINE

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

21

S T A N D A R D C H A R T E R E D B A N K (P A K I S T A N ) L I M I T E D

W EAKNESS IN E XISTING S YSTEM

Standard Chartered existing information technology system is fulfilling all of their need without any
error, and the network terminologies they implemented is serving excellent in terms of quality and
security.
The weakness in their existing system is that they stores only the last 3 years of customer data into
their local server to follow the STATE BANK OF PAKISTAN law. But in some cases they have to
retrieve the old data from their Chennai, India server, which cost them money for downloading as
well as uploading.

S UGGESTIONS AND R ECOMMENDATIONS

Standard Chartered bank should store all of the customer data into its local servers for faster access
to the old data and to save the money they spent in order to download the archived data from the
Chennai server.

C ONCLUSION
This report is complete implementation of our course study. After our visit to multinational
organization, we came to know how these organization works in order to maintain their standard and
market share in the industry. We also came to know the different industrial standards that an
organization has to follow in order become agile. This report helped us in clearly understanding the
complex business logics as well as the impact of short and long-term strategies.
The report also gives us practical exposure to some state of the art IT infrastructure like redundant
networks etc and their impact on day-to-day business. The project helped us in developing
interpersonal skills, awareness of work environment in organization and the role of Information
system in organizations.

SIR SYED UNIVERSITY

OF

E N G I N E E RI N G

AND

TECHNOLOGY

22