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Role of MIS in Banking Industry

The document discusses the role of management information systems (MIS) in the banking sector. An effective MIS is important for banks to understand customer needs, monitor account activity, and make strategic business decisions. The MIS should create a customer database to analyze customer service expectations and needs over time. It should also generate reports to alert customers and management about account balances and activity. Additionally, the MIS aids in monitoring key banking ratios and indices to ensure regulatory compliance and optimal business performance. It helps identify training needs for employees to continuously improve service quality.

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Ravi Prakash
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759 views2 pages

Role of MIS in Banking Industry

The document discusses the role of management information systems (MIS) in the banking sector. An effective MIS is important for banks to understand customer needs, monitor account activity, and make strategic business decisions. The MIS should create a customer database to analyze customer service expectations and needs over time. It should also generate reports to alert customers and management about account balances and activity. Additionally, the MIS aids in monitoring key banking ratios and indices to ensure regulatory compliance and optimal business performance. It helps identify training needs for employees to continuously improve service quality.

Uploaded by

Ravi Prakash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Role 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.
The bank has a broad range of customers like individuals, institutions, trusts,
business organizations, Government. time is taken for crediting the amount,
withdrawal of cash, the sanction of a loan or credit facility, etc. are the norms of
deciding an excellent service. The MIS in banking industry revolves around this
aspect. The customer of the bank would like to know the status of the account very
fast to make decisions on withdrawals or payments or obtaining the loan assistance
for his particular need with a reasonable rate of interest. Some customers would be
interested in tax consulting and tax planning. Hence, MIS is to be designed to
identify, decide and develop a service strategy for offering a distinctive service to
the broad range of customers seeking a variety of service demands.
The following points should be taken care of while designing an MIS for a bank:

1) Customer database
• The service expectations and perceptions revolve around the following factors:

Customer, Operator, Class of customers such as income group, corporate bodies,


and Working hours
The MIS should create a customer database and analyze the needs of the customers
from time to time to create suitable service package.

2) Service to the account holders the (account holders) need constant advice
on the status and its operations. Most of the customers use their account for routine
payments affecting the balance.
Based on these reports, the management of the bank should alert or warn the
customer to act on his account to correct the situation.

3) Service for business promotions The bank finances can be utilized in


some ways to increase the banking operations by offering credit to the right kind of
customers. It is, therefore, necessary to study the trend in the business industry and
solicit the customers from the upcoming and growing business sector. The MIS
should concentrate on data collection from various sources to analyze and conclude
the future corporate strategy.

4) The index monitoring system Another feature of the MIS is to monitor the
variety of indices and ratios related to banking operations, which are internal to the
banking business. Some of these ratios fulfill the legal needs like the Cash Reserve
Ratio (CRR) OR Statutory Liquidity Ratio (SLR); some meet the policy needs like
the priority sector ratio to total advances and so on. It is necessary to build the MIS
applications to support the bank manager in making decisions to keep different
norms and ratios within the acceptable limits.
5) Human resource upgrade there is a lot of human aspect in the banking
operations. The MIS should identify such needs and offer help to the management
in designing training courses for the employees to improve their knowledge about
banking and the financial world. It is, therefore, necessary to set the internal
standards, accuracy, responsiveness and time.

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