MANAGEMENT INFORMATION SYSTEM IN BANK TREASURY

Management Information System in Bank Treasury

Management Information System in Bank Treasury

Introduction

The banking sector is undergoing significant changes as the international economy and dynamic business environment expands towards management information system (Soliman and Youssef, 2003; Chen et al., 2005). The widespread relaxation of the financial system and regulation has resulted in more efficient financial markets and financial technology (Ramani and Pavri, 1994; Stoneman, 2003; Wu et al., 2004).

As internet technology evolves, different kinds of electronic banking technologies that breach geographical, industrial and regulatory barriers, creating new products, services and market opportunities, and developing a great information and system-oriented business and management process (Swierczek and Shrestha, 2003; Walker and Johnson, 1996). Management information system is understood as the integration of tresury system requirements into one cohesive process (Chandra and Kumar, 2001; Rao, 2000).

Today's, intensive changes and the fierce market competition compel process banks to break through these obstacles by integrating treasury management strategies, human factors, production processes and control techniques (Extrem, 2003; Jonathan, 1999; Clark, 1994). Some of the consequences of lack of co-ordination in redefining these business processes are difficulties in accessing information, which slows down the management information system development process and creates unnecessary rework, with a corresponding related cost.

Real-time information access and delivery helps treasury department of the bank better react to customers' management needs (Gupta, 2000). To achieve managerial and data sharing integration, banks must coordinate with their clients to build architectures and reference models that rapidly integrate management information system.

Scope

Many management information systems installed in the British banking sector will not make the switch to client/server-based or Web Services financial systems until these applications can guarantee the security, interoperability, portability, transaction integrity and monitoring capabilities found in mainframe systems.

Previous standards-based distributed computing architectures such as the Object Management Group's Common Object Request Broker Architecture (CORBA), or the Open Group's Distributed Computing Environment (DCE) found difficulty in delivering comprehensive interoperable services in a multivendor heterogeneous computing environment (The Common Object Request Broker Architecture and Specification, 1995; Johnson et al., 1995; Garceau et al., 1999). Therefore, the traditional methods for enterprise financial reporting and analysis tended to be manual, time-consuming and costly. Managing the management information system has become a way of improving competitiveness by reducing uncertainty and enhancing customer services (Chandra and Kumar, 2000). Financial reports that are difficult to deliver, interpret, analyse and compare can increase the perception of management risk. For example, enterprises might keep providing goods to outside vendors without knowing that the vendor's credit rating has turned bad (Wang, 2001a).

First, management information system (MIS) investments are one of the well-recognised keys to competitive advantage in the banking sector. Existing banking systems, practically always homegrown, remain huge and cumbersome, requiring intense maintenance and lack flexibility. The investments already made in existing systems cannot be discarded and constitute a “legacy” burden (Lin et al., 2000). In addition, each bank customers or its management information partners might build their own applications with their own proprietary operating systems, application programs, ...