The company being researched is the National Bank of Malawi. This is a fiscal services supplier in Malawi which is in Central Africa. Its central office is in Blantyre, which is a commercial metropolis in Malawi.
The company possesses distribution web comprising of subdivisions, ATMs and on-line banking.
A research is being done on the background, lines of concern and concern scheme applied at the National Bank of Malawi. Under this research, the followers will be discussed ;
The mission statement will be analyzed.
An organizational construction will be drawn and types of determination made at each determination doing degree will be analysed from it.
Recommendation of information systems at each determination doing degree will be done.
The environmental factors that affect the organisation will besides be analysed.
The strengths and the failings in the National Bank of Malawi.
Ethical issues impacting the administration.
Decision and mentions will besides be listed at the terminal of the research.
About National Bank of Malawi
This is a fiscal services company based in Malawi, in cardinal Africa. It was listed on the Malawi stock exchange in August 2000 with a sum of 450,000,000 ordinary portions. This therefore makes it to be a public company.
The fiscal services provided by the National Bank of Malawi are as follows:
Loan merchandises: this is a flexible support installation where borrowers are allowed to overdraw their current histories up to hold borrowing bounds. Other types of loans they provide include mortgage loans, vehicle loans, and place betterment loans.
Card services: the bank has the undermentioned types of card which it provides to its clients:
Money card is the basic card which is used to retreat money from the auto-teller machine. This card can besides be used to pay public-service corporation measures.
Money card Gold is the card that has 3 dimensional values. It is besides a check warrant card.
International dollar card is an American Express International Dollar card that provides the corporate clients with a method of payment in US dollars when they are o a concern trip.
Visa hard currency passport is the type of card that has replaced the traveler ‘s checks. This type of card can be used on any auto-teller machine in the universe, one time the client informs the bank that they are going abroad. This shows how the IS for the bank has improved.
Tocopherol banking is Microsoft Windowss based Electronic Banking services offered to the clients. With these services, the bank provides its clients with entree to a broad scope of banking services via their personal computing machine. In this manner, the bank could easy supply information to its clients and the clients can rapidly move on the information given.
SMS Banking is the type of banking of which they are provided with information about their bank histories or fiscal position through a text message via the client ‘s nomadic phone.
Customer histories: these include histories like current histories, nest eggs account, fixed term sedimentations, pupils saver histories and short term sedimentation besides known as call sedimentation histories.
Asset finance: this is provided by renting an plus to the client, where by the client pays back for the plus leased to them over a period of clip to the bank.
Money Gram: is an international money transportation available all National Bank of Malawi subdivisions. It is regarded as fast, safe manner to direct and have money worldwide.
A brief background of the National Bank of Malawi is as follows ; Banking services in Malawi were started in August 1894 by a company known as African Lakes Corporation ( ALC ) . This company is presently known as Mandala. However, some companies in Malawi were non happy with the manner ALC were managing the banking services and decided to near Standard Bank in South Africa to run in Blantyre. Standard Bank was an independent bank during that period.
Hence Standard Bank opened its subdivision in Malawi Blantyre in April 1901. By 1906, the sedimentations to Bank had reached ?25,000. Barclays bank had some portions in the Standard Bank.
In 1971, Barclays bank, the Standard bank and Malawi Government, agreed to make the National Bank of Malawi through the merger of the two Bankss. By this clip, other large companies had some portion as follows ; standard Bank and Barclays Bank had 51 % of the Equity, Press Holdings had 29 % and the Agricultural Development & A ; Marketing Corporation ( Admarc ) had 21 % .
Tracy ( 2003 ) defines a mission statement as the look to which the company gives for its aspirations and the ground why it exists. It is hence an look for the company ‘s grounds for being in concern. It can besides be seen as the present tense declaration of what the company wants to go and carry through in the close hereafter.
Therefore, National bank ‘s mission statement states that the chief purpose is to “ supply best fiscal services in Malawi and in the part which is distinguished by outstanding service, merchandise invention and sustained net incomes growing. ”
This mission statement can be analysed with the manner the bank conducts its services to its clients. Each statement can be analysed as follows:
Supplying best fiscal services in Malawi
The above statement is proved by a assortment of merchandises which the company provides to its clients. The loans for illustration do hold sensible involvement rates for which to do them low-cost to refund. The debut of the assorted types of cards like the American Express, money card Gold besides proves how the fiscal services are bettering in the bank for its clients. This takes into consideration that Malawi being a developing state, or a 3rd universe state, this is a great betterment in footings of Information Technology and information systems.
Distinguished by outstanding service, merchandise invention and sustained net incomes growing.
Malawi being a developing state, National Bank of Malawi is one of the first Bankss to convey in such progresss in Information Technology in banking in the state. Therefore, with these progresss in IT, National Bank is seen to be outstanding in its services it provides to the community. Taking into consideration that the bank has introduced e-banking into the state, this could be regarded as an outstanding service. It has besides sustained net incomes growing as most of the clients have joined the bank thereby deriving more income as it has more clients and that it charges for the services it provides to the community.
Business scheme for the National Bank of Malawi
National bank of Malawi has a form of concern scheme which it follows. It does hold strategic programs and Campbell et Al ( 2004 ) specify strategic program as a set of actions combined with the purpose of increasing the long term good being and strength of the organisation.
The organisation does hold a huge information engineering section and it wholly depends on the IT for information in order to run the bank. It therefore uses Management information systems for it to be efficient in functioning the clients.
The bank has the undermentioned organisation construction as shown in figure 1:
Chief executive officer
Head of operations dept
Head of human resources
Head of client services dept
Head of corporate banking dept
Head of recognition direction dept
Head of personal, concern banking
Head of IT dept
Head of finance section
Business banking director
Corporate Banking director
Customer services director
Human resources director
Help desk helpers
By looking at the organisational construction in figure 1 for the National Bank of Malawi, and with mention from ( Laudon and Laudon 2004 ) , it could be said that the Bank is still utilizing the traditional hierarchal organisational construction with many degrees of direction.
The top direction which is from the president, the managers and the Chief Executive Officer is placed at the top degree of direction which is strategic degree. National Bank of Malawi calls them Board of managers. They are the 1s that are involved in doing long term determinations. This top direction is involved with Executive Information Systems. Avison and Shah ( 1998 ) reference that Executive Information Systems are designed for top direction as they appear to be graphical in nature. They besides permit easy entree to a broad scope of information. Therefore, the Executive Information Systems at this degree are expected to hold a user friendly interface. Hence, the executive information systems used at the Bank is power drama server web. This tool is an OLAP ( Online Analytical Processing ) . This tool supports both Macintosh and windows runing system. With this, the top direction is able to compare the sum of net incomes they have made in a peculiar twelvemonth, figure of clients they have gained or lost with in the old ages. They are besides capable of seeing the type of ailments their clients are doing. For illustration, clients ailments of line uping for long periods in the bank particularly when it is near to a public vacation or when people have been paid their wages. This would enable the top direction to seek for options.
By puting the organisational chart in to the degrees of direction, the General Manager, the legal advocate, the caputs of the followers:
Corporate banking section
Credit direction section,
Personal concern banking and the
Information engineering section,
The caputs of the above mentioned sections are placed under the tactical degree of direction. These use determination support systems. Avison and Fitzgerald ( 1997 ) say that these systems use a broad scope of facts about the organisation or sometimes associate to factors impacting the organisation externally to supply the information to assist the determination shaper. This system helps directors to recover information which will assist them do determinations about, for illustration, where to construct another subdivision for the bank, where to put in other car Teller machines and wages for the employees. The directors under this degree use the undermentioned information to do such determinations:
Current and nest eggs account studies.
Foreign exchange rates studies
Loan application studies
Money market studies
This is the 3rd degree of the direction pyramid. The following from the organisational chart autumn under the cognition degree of the pyramid:
Human resources director
Business banking director
Customer services director
Human resources director
Maracas and O’Brien ( 2007 ) reference that the directors under this degree use the cognition work systems and that they use a batch of research to specify jobs in their section and place the options. Therefore, the information the cognition workers for bank usage to move upon is as follows:
SigCap ; is a system used to verify signatures of the clients. It shops the scanned signatures of the clients and whenever a check is presented to the bank, this system is used to verify whether the signature is echt or bogus. Hence the directors at this degree usage this system to seek if there is demand for betterment, in the event that there are disagreements.
IBSNET: this is a system used for international trade and funding. The directors at this degree usage this system to find if they are capable of standing good on the foreign exchange rates.
Walford ( 1999 ) describes the operational degree as the degree that is designed with the intent to keep an environment that can back up the assets utilized by the organisation. They are normally concerned with the twenty-four hours to twenty-four hours running of the organisation. Hence the type of system that can be used under this degree is dealing treating system.
By looking at the organisation chart, the aid desk helpers, histories clerks, corporate officers, human resources officers, bank Tellers, IT assistants and IT support officers ‘ autumn under the operational degree which uses dealing treating systems. Loudon and Loudon ( 2004 ) defines TPS as a computerized system that records and performs day-to-day minutess which are normally everyday based necessary to carry on concern for the organisation.
Examples of TPS used at this bank are as follows ;
Batch Processing is a dealing type that shops informations for processing at a certain pre-defined clip. An illustration used in the bank is the recognition card dealing. The dealing is stored in the IT system for it to be processed at a pre-defined clip. This is because recognition card minutess are processed merely one time.
Real clip processing is chiefly concerned with velocity. This normally deals with when the clients have withdrawn the money utilizing the teller or the car Teller machine. It is hence critical that the dealing be processed and the bank balance be updated rapidly so that the records are kept for both the client and the bank.
Environmental factors impacting NBM
The environmental factors that affect NBM are in two classs. The first is known as the internal environmental factor and the other one is the external environmental factor. Internal factors are the 1s which are within the company and are under the control of the company. External factors are the 1s that are outside the company and could sometimes be beyond the organisational control. ( Project direction institute 2008 ) .
The internal factors that affect the bank are as follows:
Organizational civilization: this becomes an consequence particularly when some modus operandis in the organisation are non liked by the clients of the bank. In this instance, most clients would retreat if they are non happy with the organisation civilization.
Leadership: this affects the bank if some of the leaders of the sections are non executing their responsibilities really good. This in most peculiar is the client services. If the client services director does non manage the clients good nor has hapless preparation in client handling, so the bank is bound to lose its clients.
The external factors impacting the bank are as follows:
Political Factors: These affect the bank in the sense that, it ‘s largely the politicians who come to acquire the money on loans. They take advantage of their political places and will normally return the loan at their ain gait. This affects the bank when it comes to involvement rates as the bank loses out.
Rivals: other Bankss are coming into the state and are turn outing good rates compared to the bank, thereby supplying stiff competition.
Ethical issues impacting the Bank
Salhenia ( 2001 ) defines ethical issues as a state of affairs which requires an organisation to take between options that must be evaluated as right or incorrect. Therefore, the state of affairss in this bank will be evaluated as follows:
Computer viruses: these are edge to assail their systems and the options they seek are to maintain up to day of the month with the latest antivirus package.
Invasions: these are activities performed by unauthorised people with the purpose of pull stringsing the system in order to derive entree to the information and pervert the informations. They guarantee that they keep the system logs in order to happen out who did which activity.
Auto Teller machine frauds: fraudsters steal pin Numberss from the bank clients by put ining their ain mini cameras by the ATM machines. This is prevented by guaranting that security steps are carried out around ATM machines.
Power failures: as Malawi is still a underdeveloped state, the state is normally faced with power failure. The bank resolves this issue by put ining generators around their subdivisions in order to transport out their services.
SWOT -Analysis of NBM
These are described as the Strengths, Weaknesses, Opportunities and Threats impacting the National Bank of Malawi.
The NBM has opened several subdivisions in the state with a renovation programme, which is seen as an effort to refocus on client demands in the state.
NBM is distributing out in Southern Africa, leting it to distribute hazard and bask economic systems in different states.
The National Bank of Malawi trade name is good established in the state as it sponsors league games in the state and besides does offer employment chances to freshly graduate pupils.
The bank takes long to pay dividends on its portions doing them less attractive to investors.
Plans to spread out to other states are limited as they are normally outbid by other major Bankss like HSBC and Barclays, therefore alternate enlargement programs have to be adopted.
Directors tend to hold big fillips at the terminal of the fiscal twelvemonth. This attracts unwanted attending from the observers.
Social welfare commissariats have decreased in states where the bank wants to spread out to because of the cost to authoritiess and NBM sees self proviso as a tendency it can use.
NBM scheme is to supply full portfolio of services in most parts of Africa, thereby holding a broad scope of cross-selling chances.
While the bank is offering a broad scope of services in the state, there may be a menace that clients may wish to travel to providers who present a more specialized attack.
The bank besides plans to shut some of the subdivisions as they are non being of much aid to it. This gives chance to the rivals to set themselves as more consumer friendly through a scheme of maintaining their subdivisions open.
Information systems are of import to an organisation. They support all the invention enterprise of a concern, it gives a competitory advantage. Therefore, the function of IS/IT must be recognized and supported by direction for it to transport much weight in an administration. The package and hardware, and all other constituents that help in the Information Systems must be protected and promoted. The security hazard information should be made available to all staff. Appropriate preparation of staff on security hazards is critical. It brings consciousness and cognition. Finally, the information Technology is bit by bit altering, new hazards and menaces are being discovered. To prolong the Information System, new attacks must be explored. Alertness on all new security hazards and care steps should be prior. Continued reappraisals of all countries would be appropriate and gives an of import border to the organisation
Table of Mentions
Avison D and Fitzgerald G, 1998, Information Systems Development: Methodologies, Techniques and Tools 2nd Edition: , McGraw-Hill International, UK.
Avison D and Shah H, 1998, The Information Systems Development Life Cycle: McGraw-Hill International, UK.
Campbell B, Stonehouse G, Houston B 2004, Business Strategy 2nd Edition, Linacre house, Jordan Hill, Oxford.
Laudon J & A ; Laudon K, 2004, Necessities of Management Information Systems 8th edition, Prentice Hall.
O’Brien J A and Marakas G M, 2007, Introduction to Information Systems 13th Edition: McGraw-Hill International, UK.
Project Management institute 2008, A usher to Project Management Body Of Knowledge 4th Edition, Journal
Salehnia A, 2002 Ethical Issues of Information Systems, IRM Press, London, United Kingdom
Tracey B. 2003 Turbo Strategy: 21 Powerful Ways to Transform Your Business and Boost your Net incomes Quickly, BCS, United Kingdom.
Walford R 1999, Business Process Implementation for IT Professionals, Artech House.
Accessed www.natbank.co.mw on 11/3/2010