INTRODUCTION
The business I have took into consideration is INVESTENT BANKING ,a banking based company. It is related to finance .The banks actually work on the investors .The clients here are, from the ordinary people to the multibillionaire heads. The effective and good bank always create the balance between those of ordinary to so called high investors. The faster the function, the easier the processes, the more the friendly personals .. the higher the possibilities for the bank to grow. Bank had to manage the records of its clients . It has to separate each data type with the other, like investment on land and hotels are different. These are different data entry. It had to do calculations on data, like half yearly interest , value added taxes, profits ,losses and so on . As world is moving very fast ,it should be dynamic too, like ATM, SMS banking ,Online banking etc. To whichever field or segment of bank I see , there's only two components that is: SOFTWARE and HARDWARE used by specific personals.
Each and every data is entered in the Software. These software are called database. Databases manages each and every data as according to the requirements of the bank. Software are coded for the each special action . thus , the desired work is done by the software .not only calculation, it also do the procedure wise check and sorts the data according to the need. The software used in this bank are the exclusive account package,
Standard data base software built in strong high level programming. The database called oracle is usually used .
Technology
refers to the information technology department. Every major investment bank has considerable amounts of in-house software, created by the technology team, who are also responsible for technical support. Technology has changed considerably in the last few years as more sales and trading desks are using electronic trading. Some trades are initiated by complex algorithms for hedging purposes.
Database
A database is a collection of data for one or more multiple uses. One way of classifying databases involves the type of content, for example: bibliographic, full-text, numeric, image. Other classification methods start from examining database models or database architectures: see below. Software organizes the data in a database according to a database model. As of 2010[update] the relational model occurs most commonly. Other models such as the hierarchical model and the network model use a more explicit representation of relationships.
Information technology
It is "the study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware", according to the Information Technology Association of America (ITAA).[1] IT deals with the use of electronic computers and computer software to convert, store, protect, process, transmit, and securely retrieve information.
INVESTMENT BANK
Investment bank is one of the leading bank our country(Nepal). It is the traditional aspect of the investment banks which also involves helping customers raise funds in the capital markets and giving advice on mergers and acquisitions. Investment banking may involve subscribing investors to a security issuance, coordinating with bidders, or negotiating with a merger target. Another term for the investment banking division is corporate finance, and its advisory group is often termed mergers and acquisitions (M&A). A pitch book of financial information is generated to market the bank to a potential M&A client; if the pitch is successful, the bank arranges the deal for the client. The investment banking division (IBD) is generally divided into industry coverage and product coverage groups. Industry coverage groups focus on a specific industry such as healthcare, industrials, or technology, and maintain relationships with corporations within the industry to bring in business for a bank. Product coverage groups focus on financial products, such as mergers and acquisitions, leveraged finance, project finance, asset finance and leasing, structured finance, restructuring, equity, and high-grade debt and generally work and collaborate with industry groups in the more intricate and specialized needs of a client .
Organizational structure of an investment bank and information technology and information system.
Main activities and units
An investment bank is split into the so-called front office, middle office, and back office. While large full-service investment banks offer all of the lines of businesses, both sell side and buy side, smaller sell side investment firms such as boutique investment banks and small broker-dealers will focus on investment banking and sales/trading/research, respectively.
Information system The broking is usually done in internet .The data are fetched in the internet through other information medias . There is extensive use of computers and online actives software. These software are capable to sort data on every entry .It could track each and every information which would be impossible with human mind .Thus, we could not even imagine anything without information systems and technology.
Investment banks offer security to both corporations issuing securities and investors buying securities. For corporations investment bankers offer information on when and how to place their securities in the market. The corporations do not have to spend on resources with which it is not equipped. To the investor, the responsible investment banker offers protection against unsafe securities. The offering of a few bad issues can cause serious loss to its reputation, and hence loss of business. Therefore, investment bankers play a very important role in issuing new security offerings.
Information system The high leveled database are used and each and every is work done in internet. The corporation and investors each has their valid identities to enter into the banks website and its system. Each have their username and password to access .The bank even manages the details of the corporation and even of the investors in their sites so that investors and corporation both could connect each other by the means of the information system. Every data are tracked and even sent to the investors through e-mail ,which has now become the necessity of every company. This is the boon in the information system without which we cannot imagine any of the business in this 21st century.
Sales and trading: On behalf of the bank and its clients, the primary function of a large investment bank is buying and selling products. In market making, traders will buy and sell financial products with the goal of making an incremental amount of money on each trade. Sales is the term for the investment banks sales force, whose primary job is to call on institutional and high-net-worth investors to suggest trading ideas (on caveat emptor basis) and take orders. Sales desks then communicate their clients' orders to the appropriate trading desks, who can price and execute trades, or structure new products that fit a specific need. Structuring has been a relatively recent activity as derivatives have come into play, with highly technical and numerate employees working on creating complex structured products which typically offer much greater margins and returns than underlying cash securities. Strategists advise external as well as internal clients on the strategies that can be adopted in various markets. Ranging from derivatives to specific industries, strategists place companies and industries in a quantitative framework with full consideration of the macroeconomic scene. This strategy often affects the way the firm will operate in the market, the direction it would like to take in terms of its proprietary and flow positions, the suggestions salespersons give to clients, as well as the way structures create new products. Banks also undertake risk through
proprietary trading, done by a special set of traders who do not interface with clients and through "principal risk", risk undertaken by a trader after he buys or sells a product to a client and does not hedge his total exposure. Banks seek to maximize profitability for a given amount of risk on their balance sheet. The necessity for numerical ability in sales and trading has created jobs for physics, math and engineering Ph.D.s who act as quantitative analysts.
Information system First of all sales are exposed in the internet where the concerned sees the graph. These graph are made by the software related to analysis .The information given by the software, are analysis by the buyer so that he could buy with high level of confidence. The buyer fully rely on the strategy shown by the software based data which has high level of accuracy. It is the accuracy and the full dependent on the information system like hardware based software the business has become easy and hence convienient.
Research is the division which reviews companies and writes reports about their prospects, often with "buy" or "sell" ratings. While the research division may or may not generate revenue (based on policies at different banks), its resources are used to assist traders in trading, the sales force in suggesting ideas to customers, and investment bankers by covering their clients. Research also serves outside clients with investment advice (such as institutional investors and high net worth individuals) in the hopes that these clients will execute suggested trade ideas through the Sales & Trading division of the bank, thereby bringing in revenue for the firm. There is a potential conflict of interest between the investment bank and its analysis in that published analysis can affect the profits of the bank. Therefore in recent years the relationship between investment banking and research has become highly regulated requiring a Chinese wall between public and private functions.
Information system :Research are done on sells or buys. The data are accessed from the database of the software used while selling or trading. The obtained are are again entered into other software that does comparison .The software made by the vendors for special purpose and is according to the need or research type. Usually, logical and relational codes are used in the coding. The data are entered into the computers ,result are accessed from the softwares and the group of researchers analyses the output and publish . It is thus seen that without the use of information system it would be harder or rather impossible to conduct research that ha high accuracy and reliability .
Other businesses that an investment bank may be involved in ;
Global transaction banking is the division which provide cash management, custody services, lending, and securities brokerage services to institutions. Prime brokerage with hedge funds has been an especially profitable business, as well as risky, as seen in the "run on the bank" with Bear Stearns in 2008.
Investment management is the professional management of various securities (shares, bonds, etc.) and other assets (e.g. real estate), to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds). The investment management division of an investment bank is generally divided into separate groups, often known as Private Wealth Management and Private Client Services.
Risk management
Involves analyzing the market and credit risk that traders are taking onto the balance sheet in conducting their daily trades, and setting limits on the amount of capital that they are able to trade in order to prevent 'bad' trades having a detrimental effect to a desk overall. Another key Middle Office role is to ensure that the above mentioned economic risks are captured accurately (as per agreement of commercial terms with the counterparty), correctly (as per standardized booking models in the most appropriate systems) and on time (typically within 30 minutes of trade execution). In recent years the risk of errors has become known as "operational risk" and the assurance Middle Offices provide now includes measures to address this risk. When this assurance is not in place, market and credit risk analysis can be unreliable and open to deliberate manipulation. Operational are often used as "hardware risk".The risk is furthered managed by the use of the database like oracle, which makes the clients involved analyzing wide range of data onto the internet. The reduces the client of choosing the "bad trades". It is hence found that information system makes the trade or business of secure which is after all sustainability of the business or trade.
Various hardware and software used in the banking
Jailbreak (iPhone OS) (software)
Software used Old (2.0 - 2.2.1) |! ... On 22 November 2009, F-Secure reported on a new malicious worm compromising bank transaction.
Trusted Computing
expected ways, and those behaviors will be enforced by hardware and software.
Automated teller machine (hardware)
transactions in a public space without the need for a cashier, human clerk or bank teller . ... Using an ATM, customers can access their bank account and cash their sum.
ZX Spectrum.
(hardware)
used in companies producing software and hardware for the machine ... physical device distributed with the software-e.g. Lenclos as used in Elite .
Commodore 64 (hardware)
Its sound chip even being used in special sound cards for PCs, and ... to bank-switch the machine's ROM in and out of the processor's.
Oracle Corporation (hardware)
marketing enterprise software products - particularly database management system
Bank switching
Bank switching (also known as " ... address bus It may also be used to configure a ... memory that is common to all banks; no matter which bank it is.
NCR Corporation (hardware)
processing system TMX , which was mainly used by financial institutions. ... National Westminster and Barclays Banks throughout the UK.
Handwriting recognition (hardware)
In the early 90s hardware makers including NCR , IBM and EO ... Pen Point used handwriting recognition ... facilities to third-party software.
Memory manager
In IBM PC compatible computing, a memory manager was a software system which ... It integrated bank-switching hardware with software support
Cloud computing used in banking.
Cloud computing is a better way to run our business. Instead of running our apps ourselves, they run on a shared data center. When we use any app that runs in the cloud, we just log in, customize it, and start using it. That's the power of cloud computing.
Businesses are running all kinds of apps in the cloud these days, like CRM, HR, accounting, and custom-built apps. Cloud-based apps can be up and running in a few days, which is unheard of with traditional business software. They cost less, because we don't need to pay for all the people, products, and facilities to run them. And, it turns out they're more scalable, more secure, and more reliable than most apps. Plus, upgrades are taken care of for you, so your apps get security and performance enhancements and new features-automatically. The way we pay for cloud-based apps is also different. Forget about buying servers and software. When our apps run in the cloud, you don't buy anything. It's all rolled up into a predictable monthly subscription, so we only pay for what we actually use.
The bottom line: Cloud computing is a simple idea, but it can have a huge impact on your business.
Traditional business applications-like those from SAP, Microsoft, and Oracle-have always been too complicated and expensive. They need a data center with office space, power, cooling, bandwidth, networks, servers, and storage. A complicated software stack. And a team of experts to install, configure, and run them. They need development, testing, staging, production, and failover environments.
Thus, could computing is the better way out for the bank to share information in the cloud and easy to access. The bank is in cost effective and hence it is easy for the clients to deal with in very cheaper way. this in turn lure more clients which later promote the growth of the bank .
Conclusion
Thus, it is found that the imagination of the business world without information technology is impossible. The business world is full of the information systems. From minors consultancies to major investment ..,from ordinary data collection to multibillionaire projects information technology is attached herewith. Communication, networks, software ,database, calculations and some are the backbone of the information technology without which not only business world ,the social and cultural world is incomplete.
