The topic of this report is "Improve business processes through using modern decision support system": A case study on Dhaka Branch of Uttara Bank Limited". To prepare this report, I have taken the necessary assistance from the Uttara Bank Limited(UBL).
My report is designed based on "General Banking Activities"(what the bank generally does) of UBL and how modern decision support system help this company to make decision. The Bank accomplishes these activities under a several department, such as: Account's opening & Clearing, Loans & Advance, Local Remittance, Foreign Remittance and Cash & Accounts Departments.
Account's Opening & Clearing Department deals with opening the different types of accounts, issuing the chequebooks, inward & outward clearing and returning of the cheque. A customer can open different types of account, such as: saving, current & different type of deposit account.
The Uttara Bank Limited offers different remittance facilities. Under the local remittance department, the clients can send & transfer one place to another in Bangladesh. This money through the mail transfer, telegraphic transfer, demand draft and pay order. Under the foreign remittance department, the bank helps the emigrants to remit their hard-earned money to the native country. The bank received & pays the cash, records the transactions and prepares the statements of daily, weekly, monthly & yearly.
ORIGIN OF THE REPORT
There exist huge differences between theoretical knowledge and practical knowledge. This report on Uttara Bank Limited is prepared to fulfill the partial requirement of the organization.
MATHODOLOGY OF THE REPORT:
Types of research: The research is an exploratory research.
Sources of data: Data for the purpose of organizing this report has been collected from both primary and secondary source.
Primary data:
Personal Observation
Face to face conversation officer & clients
Working at different desks of the bank.
Secondary sources of data: The website of Uttara Bank Limited various research oriented and marketing books were the secondary source of data.
Secondary data:
All of the data are collected from various pub lions of Uttara bank ltd.like
Annual report of Uttara bank ltd
Published booklet of uttara bank Ltd.
http://www.uttarabank-bd.com/
Time frame of the report
Name of the department:
General banking department……………………………….. 8 days
Accounts section……………………………………………… 10 days
Scope of the Report
This report covered the overall general banking system of Uttara Bank Limited and use of modern decision support system. There are many branches of UBL across the country and among those branches I will be done my research in Rokeya Shorony Branch, Dhaka. I was trying to know all possible activities relating to this branch while I conducting this research.
Limitations of the Report
The report was completed under certain constrains which were:
Difficulty in communication and gaining accesses to financial sector.
Non-availability of the most required data.
Assignment time is not enough time for such an extensive study so time constraints are another limitation of this report.
Some data could not been collected for confidentially or secrecy of management.
The bankers are very busy with their jobs, which lead a little time to consult with.
Overview of UBL
Uttara Bank Limited UBL is a private commercial Bank in Bangladesh. Uttara Bank-one of the largest and oldest private-sector commercial bank in Bangladesh, with years of experience. Adaptation of modern technology both in terms of equipment and banking practice ensures efficient service to clients. 207 branches at home and other more affiliates worldwide create efficient networking. Uttara Bank is a bank that serves both clients and country.
Historical Background of UBL:
During 28th January, 1965. At that time it's paid up capital was 69.13 crore and profit figure was 42lac. During September 1983 it was privatized under privatization act. At that time this deposit was 231.03 crore and profit figure was 5.06 up to 2003 its number of branches stands to 198 and it's paid up capital was 100 million. 95% of its share holder is public and rest of share holds by Government. Uttara Bank Ltd. is one of the largest and oldest private-sec1o commercial Bank in Bangladesh. Adaptation o modern technology both in terms of equipments and banking practice ensure efficient service to clients I9 branches at home and 200 affiliates worldwide create efficient networking, and reach capability.
Mission Vision & objectives of UBL:
2.3.1 Mission:
The bank has some mission to achieve the organizational goals. The bank looks forward with excitement and a commitment to bring greater benefits to customers.Some of them are as follows as:
Uttara Bank Limited provides high quality financial services to strengthen the well-being and success of individual, industries and business communities.
Its aim to ensure their competitive advantages by upgrading banking technology and information system.
UBL intends to play more important role in the economic development of Bangladesh and its financial relations with the west of the world by interlinking both modernistic and international operations.
The bank creates wealth for the shareholders
The bank believes in strong capitalization.
Its maintain high standard of corporate and business ethics.
Uttara Bank Limited (UBL) HIERARCHY
Managing Director
↓
Deputy Managing Director
↓
Asst. Managing Director
↓
General Manager
↓
Deputy General Manager
↓
Asst. General Manager
↓
Senior Principal Officer
↓
Principal Officer
↓
Senior Officer Grade -1
↓
Officer Grade -2
(SOURCE: ANNUAL REPORT OF UBL 2009)
UBL bank is giving loan these categories: superior, good and acceptable.
UBL bank is consideration loan this category: Marginal or Watch list.
UBL bank had given no loan these categories: Special Mention, Sub standard, doubtful, bad and loss.
(SOURCE :ANNUAL REPORT OF UBL 2009)
Revised Interest rates on deposit & lending
Type of deposit
Rate of Interest
SB Account
4.50%
STD Account
5.00%
Fixed Deposit :
i) 3 months & above but less than 6 months 6.25%
ii) 6 months & above but less than 1 year 7.50%
iii) 1 year & above but less than 2 years 8.00%
iv) 2 years & above but less than 3 years 9.00%
1.
Categories of lending
(Agriculture )
Rate of Interest
Crop Loan
10.00%
Agro-based Industries
10.00%
2. Large and Medium Scale Industries (TL) 15.00%
3. Working Capital
Loans & advances upto Tk. 1 Crore 15.00%
Loans & advances above Tk. 1 Crore to 3 crore 14.50%
Loans & advances above 3 crore to 10 crore 14.00%
Loans & advance above 10 crore 13.50%
4. Export
P. C. against export of raw jute 7.00% (Fixed)
O.D. against export of leather products 7.00% (Fixed)
O.D. against export of other commodities 7.00% (Fixed)
5. Other commercial lending
Jute trading 14.50%
Fertilizer trading 13.50% to 15.00%
( c) Other trading 13.50% to 15.00%
6. Small and cottage Industries (TL)
Interest rates will be charged in the following manner:
Loans & advances up to Tk. 1 crore 15.00%
Loans & advances above Tk. 1 crore to 3 crore 14.50%
Loans & advances above 3 crore to 10 crore 14.00%
Loans & advances above 10 crore 13.50%
7. Others
Housing
Residential 14.50%
Commercial 14.50%
Transport 13.50% to 15.00%
Cold Storage 13.50% to 15.00%
Brick Field 13.50% to 15.00%
Loan Against work order 13.50% to 15.00%
Interest rates will be charged in the following manner:
Loans advance up to Tk. 1 crore 15.00%
Loans & advances above Tk. 1 crore to 3 crore 14.50%
Loans & advances above 3 crore to 10 crore 14.00%
Loans & advances above 10 crore 13.50%
Loan against F.D.R 2% above the rate allowed on FDR.
Loan Against DPS 15.00%
Loan Against WEDB & ICB Unit Certificate 14.50%
Loan Against surrendered value of 15.00%
Life insurance Policy
Consumer loan 15.00%
Personal Loan 15.00%
Small business loan 15.00%
House repairing / renovation loan 14.00%
8. Non -Banking Financial Institution
and other syndicated loans 12.50% (minimum)
(SOURCE: ANNUAL REPORT OF UBL 2009)
Head wise position of bank's Invested Fund at the end of the year 2009 is given below:
UBL Invested Fund of 2009:
Heads of Investment
(Taka in millions)
Treasury Bills and Bonds
Approved Debenture(in purchase price)
Prize Bond
14,142.8
231.0
8.1
Ordinary Shares:
a. Eastern Bank Ltd. 43.1
b. Karmasangsthan Bank 10
c. ICB (Approved) 7.9
d. CDBL 1.0
e. Other Companies 11.9
73.9
Total:
14,455.8
SOURCE: ANNUAL REPORT OF UBL 2009
Import and Export Business:
Bank has been continuing to extend special importance on foreign business from the beginning of its establishment which is still prevailing during the year. In 2009 import business stood at Tk. 25,407.9 million as compared to the volume of Tk.22,630.4 million of 2008. Export business handled by the Bank during the year 2009 amounted to Tk. 14,784.5 million as against Tk. 18,133.9 million of the preceding year.
DIFFERENT DEPERTMENTS OF UBL
There are 2 wings of UBL.
1. Head office
2. Regional office.
Each contains their different branches and sub branches have been given bellow:
1.1 Head office:
Chairman's secretariat
Managing director's secretariat
Share department
MIS & computer department
1.2 Human resources division:
personnel department
training institute
establishment departments
stationary and records departments
test key department
transport department
1.3 Marketing division:
Business development department
Branches department
Engineering department
Public department
1.4 Credit division:
Credit operation department
Recovery department
Lease financing unit
CIB unit
1.5 Accounts department:
Statistics department
Reconciliation department
Expenditure department
1.6 Audit & inspection division:
Internal audit department
External audit department
1.7 International division:
Treasury department
Dealing room
3.2 Regional offices of UBL:
Regional Offices
Dhaka North Zone
Dhaka South Zone
Mymensing Zone
Chittagong Zone
Bogra Zone
Rajshahi Zone
Barishal Zone
Comilla Zone
General Banking
Functions of UBL:
Accepting deposits
Granting credit
Investment
Subsidiary function of a bank:
Providing remittance facilities
Providing TT(telephone transfer) & MT(mail transfer) facilities to its own branches.
Executing standing insinuations of customers
Providing safe deposit lockers
Undertaking Foreign Exchange business include issuing of letter of Credit (LIC) Buying or selling of securities-collecting interest/dividends on securities/shares etc.
Collecting bills / Cheques/ PO.
Any other service given by a modern banker.
Procedures for opening Accounts:
The introduction shall be obtained in writing in the respective column of Account opening form.
For opening savings bank account of individual either singly or jointly, passports and NID cards accepted for introduction, but subsequently proper introduction may be obtained.
Introduction of Current Account by members of the staff may be allowed but shall be discouraged as far as possible.
Current Account shall preferably be introduced by another Current Account holder acceptable to bank.
Introduction of Account holder of other branch may be accepted with caution. In that case the introducer's signature must be verified by authorized officer of that branch and authenticated by a forwarding letter.
Photographs of account holder must be attested by the introduce.
Letter of thanks be issued to introducer in Bank's standard specimen.
Every person must be fill up KYC (know your customer) form.
Account Section:
This is a very much crucial department for each branch of a commercial bank. Records for all the transaction of every department are kept here as well as with the respective branches. Accounting department varies all the financial amount s and content of transactions. If any discrepancy arise regarding any transaction this department report to the concern department.
Task of account section
records all transaction in cashbook
records all transaction in the general and subsidiary books
prepare daily fund function, weekly position, periodic statement of affairs
prepare necessary statement for reporting purpose
pay all expenditure on behalf of the branch
make salary statement and pay salary
budgeting for branch
Make charges for different types.
UBL Business Information System
UBL currently used accounting software for their general purpose. All transaction and account information are computerized. Customer and loan, deposit etc. The maintain all bellow information with their software.
Customer information
Deposit information
Loan and interest information
All transactional information
Employee Details
Employee payment system
Cost benefit analysis
Insurance information
All transactional report can be generated
Annual report etc
UBL accounting software's some interfaces are given bellow
Picture: 1
Picture: 2
Picture: 3
Picture: 4
UBL Main Problems:
UBL has many branches all over the country. Sometimes they arrange meeting for managerial purpose. Participation of meeting for managerial person is more important. But due to traffic jam and timing they can't able to participate the meeting. For this reason they are facing a big problem to operate the UBL properly.
Problems in decision making
People do not able to attend the meeting in proper time
It is costly to attend the meeting
That's not time consuming
GDSS
Group Decision Support Systems (GDSS) - An interactive, computer-based system that facilitates solution of unstructured problems by a set of decision-makers working together as a group. It aids groups, especially groups of managers, in analyzing problem situations and in performing group decision making tasks.
(http://www.tbrc.fi/pubfilet/TBRC_200245112011.pdf GDSS : 10.12.10)
Advantages of GDSS
High level managers can spend 80% of their time making decisions in groups. Applied correctly, GDSS can reduce this time, arriving at a better decision faster.
More participants = more knowledge available on which to base decision
Be easy to learn and use
Specially design system
Improve the process and product of group decision making
Supporting positive group behavior
Anonymity - drive out fear leading to better decisions from a diverse hierarchy of decision makers
Parallel Communication - eliminate monopolizing providing increased participation, better decisions
Automated record keeping - no need to take notes, they're automatically recorded
Ability for virtual meetings - only need hardware, software and people connected
Portability - Can be set up to be portable… laptop
Global Potential - People can be connected across the world
No need for a computer guru - although some basic experience is a must
Disadvantages of GDSS:
Cost -infrastructure costs to provide the hardware and software/room/network connectivity can be very expensive
Security - especially true when companies rent the facilities for GDSS; also, the facilitator may be a lower-level employee who may leak information to peers
Technical Failure - power loss, loss of connectivity, relies heavily on bandwidth and LAN/WAN infrastructure - properly setup system should minimize this risk
Keyboarding Skills - reduced participation may result due to frustration
Training - learning curve is present for users, varies by situation
Perception of messages - lack of verbal communication could lead to misinterpretation
Typical GDSS Process
Group Leader select software, develop agenda
2) Participants meet (in decision room/Internet) and are given a task.
3) Participants generate ideas - brainstorm anonymously
4) Facilitator organizes ideas into categories.
5) Discussion and prioritization - may involve ranking by some criteria and/or rating to the facilitators scale
6) Repeat Steps 3, 4, 5 as necessary
7) Reach decision
8) Recommend providing feedback on decision and results to all involved
GDSS Time/Place Environment
Types of GDSS
There are four types of GDSS according to how they fit along two dimensions.
1. The physical proximity of group members.
2. Decision making session duration.
Show in graph
1 Decision room
Traditional one off meeting with the support of computer. All participants sit within a room and faced a monitor or projector for group meeting.
Recommendation:
Decision room is not sweet able for the UCB because branches of UCB separated in a large distance.
2. Teleconferencing
More than one meeting room which is geographically distance can be connected through teleconferencing. Can be including audio video and computer links for special schedule meetings. With GDSS concepts this represents a manager of existing technology.
In this picture all office is situated in deferent district of country.
Recommendation
Using "Teleconferencing" the can arrange
3. Local Decision Network
Participants off meeting when stay in a single building and they participate and dial with problems regularly. Without meeting face to face they can discuss sitting on their own desk.
People hold a meeting with each person with their own office through a LAN.
4. Remote Decision Making
Using this GDSS meeting may be called at just a few minutes' notice using a wide area network to communicate with other member.
Components of GDSS
1. Hardware
2. Software
3. People
4. Procedure
Best Uses of GDSS
Complex decision making
For Large Groups - a meeting of 2 or 3 people does not justify GDSS investment
Choosing the Right GDSS
Consider the following
Decision Task Type
Group Size
Location of members of the group
Available Software:
Group Systems offers a collection of software tools to support group activities such as brainstorming, information gathering, idea organization, voting, preference aggregation, and consensus building.
Proposed Solution
So GDSS is the best solution for UCB. Using "Remote Decision Making" of GDSS they can solve their problem. Because their branches is situated all over the country. Using Remote Decision Making of GDSS UCB managerial person can attend the meeting sitting on their own branch office on time and can able to share their knowledge and ideas with other member. It is time consuming for them. It ensures presence of all member to the meeting according to schedule time.
