Importance of mis in banking sector

Although, most banks in the past operate manual system of information processing and storage, which is associated with problems of inaccuracy, poor storage facilities, cost and time constraints, had a negative effect on the delivery of services both to consumers of banking services and in — house management decision making. Thus, it made banking operations in Nigeria inconsistent with the dynamic global trend of banking. This process simply means deviation from the old fashion simple manual system to the much up graded computer based information system. This computer based information system use computer hardware and software, telecommunications networks, computer based data management techniques and other forms of information technology I.

Importance of mis in banking sector

Management Information Importance of mis in banking sector 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 businessan 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 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. Identification of the information needs 2.

Collection of information 3. Classification of the information collected 4. 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 ………………….

Thus, it becomes absolutely essential for a bank to maintain an accurate mass record of all transactions of every individual or corporate. 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. 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.

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 and greatly improved speed and power of computers, MIS moved from its traditional role as an application of back office support to one offering opportunities for gaining significant competitive advantage.

It is being increasingly viewed as having the capability to alter core organizational directions, reorient corporate strategy, and redefine industry structure. In recent years, there has been increased awareness among organizations of the potential of IT and use of MIS to exploit its potential and use it effectively.

Many successful local financial institutions like Eastern Bank Ltd. Finally……… There is a significant need for determining the role of MIS in banks. This would assure the top management that the MIS development is in the right direction.

This would also help in exploring the intended and the real role of MIS in banks. The knowledge of the real role of MIS 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 MIS managers in organizational hierarchy, need for innovation and flexibility in MIS planning approach, etc.

The MIS practitioners may use the variables used here for self-evaluation and for deciding about the IS development.

Foreign and few private banks, though in the strategic group today, have to constantly track MIS for strategic advantage to maintain their position. Public sector banks have to search for ways to shift from support group to the strategic group in order to enjoy a strategic advantage from the use of MIS.

In order to achieve this objective, they may have to formulate a different MIS strategy so as to make them competitive enough to survive.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 .

Implementation of MIS in Banking Sector. For this, i have taken State Bank of India as example. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.

Management Information System (MIS) In Banking Sector Compiled by Deevanshu saxena Management Information System (MIS) • The term is not new to the banking sector/5(13).

In banking also, the concept of the financial product has come in. Read more about impact management information systems and application of management information system.

Importance of mis in banking sector

The customers choose a bank mainly on the following three factors: i. The ease of doing business. ii. The quality of personnel and service. iii. The range of the financial services.

Management Information Systems in the Banking Sector 1. 1 Presented By: FARHAN TARIQ () ISHAN PAREKH () CHITTESH . The role played by information in aiding managerial work to support decision-making particularly in the banking sector cannot be ignored, considering the fact that banking operations rely substantially on management information systems.

Importance of Management Information System in Banking Sector