INFORMATION TECHNOLOGY FOR BANKING MANAGEMENT

GB31103

Semester 1, 2014/2015

Group Assignment:

Lecture – Week 4

Create a value chain model for a bank. How has the bank used the power of technology to gain a competitive advantage?

Prepared for:

MISS. LEE TZEE YANN

Lecturer

Prepared by:

Submission Date:

1 OCTOBER 2014

1)   Create a value chain model for a bank.

Porter’s Generic Value Chain for Bank CIMB Niaga

The primary activities relate straightforwardly to obtain necessary inputs, transform them into a desirable product or service, sale, maintenance and support of a product or service. They comprise of the accompanying:

Inbound logistics – These are all the ways of receiving, warehousing and inventory control of assets or input materials. Customer connections are a key component in making esteem here. For example CIMB Group as Corporate banking has vision to be a main nearby player with local limit in corporate and venture saving money by leveraging on gathering quality. Under CIMB new authoritative structure successful 2 March 2009, Corporate Banking envelops Financial Institution and Securities Administrations and Transaction Services. Corporate Banking likewise includes a Syndication Division and Corporate Advisory Division that gives an extensive variety of administrations incorporating undertaking funding displaying, organization valuation, key accomplice looks, obligation rebuilding to prompting the clients regarding transactions with shareholders, and monetary guides.

Operations – These are the change activities that the value-creating activity that transform the inputs into the final product or service. Here, operational frameworks make esteem. For example, CIMB Niaga’s treasury exercises are subdivided into a sales & Risk Analytics division and a Trading division. CIMB Treasury is in charge of dealing with the bank’s liquidity through interbank deposit taking/setting.

It produces income through its exchanging work area in FX, Settled Income & Derivatives. The Treasury gives evaluating to customers to their needs in FX and investment rate prerequisites, such as supporting their FX risk to minimize the risks and investing their overabundance funds to produce higher returns through structured deposits.

Outbound logistics – These activities convey item or administration to customers. These are the activities such as to get finished product or service to the customer, including warehousing, order fulfilment and etc.For example, CIMB bank as Business Banking has primary destination to give saving money items and administrations from top of the line market to center and more modest retail business clients counting the little and medium endeavours (SME) area by leveraging the Sales & Distribution (S&D) bunch, SME focuses, and Microfinance outlets as delivery channels.

Marketing & Sales – These are the methods used to influence customers to buy or get service from you rather than your rivals. The profits offered, and how well it impart them, are wellsprings of quality here. For example, CIMB as Retail Banking division is responsible for the by and large technique administration and budgetary execution of the Bank’s business for retail individual customers.  Retail Banking includes Consumer Liability, loans, deposits, retail forex, and wealth management aswell as other transactional services.Key capacities inside Retail Banking incorporate item advancement and marketing, customer division also segmental product packaging, credit cycle administration (deals handling, credit and gathering works under the unsecured loaning monoline), interchange channels advancement (internet banking, mobile banking SST/ATM) and additionally client relationship administrate.

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Service– These are the activities identified with keeping up the estimation of item or administration to customers by enhance the product’s or service’s value including customer support. For example, CIMB’s credit & risk management, direct all matters identified with risk management and relief including the customarily assembled gatherings of the risk management committee. Ensure business maintainable quality of CIMB Niaga by overseeing Enterprise Risk Management and risk analysis to oversee all inclusive dangers and return trade-offs also to be an accomplice for all business and supportunits. They will improve shareholder esteem through evaluation of risk return portfolio ready to go action. Other than that, define the execution of suitable internalcontrol frameworks in the organization. Determine agreeability overall risk policies and cut-off distributions of the Risk Committee and review the usage of risk management, policies and procedures.

These support activities help the essential capacities above. In above model, shows the support or secondary, activities demonstrate that each one backing, or optional, action can assume a part in every essential movement. Case in point, procurement supports operations with specific activities, however it likewise supports promoting and sales with different activities.

Procurement – This is the thing that the association does to get the assets it needs to work. This incorporates discovering merchants and arranging best costs. For example CIMB; Help in the coordination range of Finance

• Financial Accounting for CIMB Niaga that covers:

• Conversion to Financial Management System

• Reconciliation of General Ledger to sub frameworks

• Chart of Account (COA) Mapping

• Alignment and usage of Accounting

Strategies.

• Fixed Assets and Accounts Payable transformation

• Alignment and usage of administrative reports

Human resource management – This is the way well an organization enlisted people, contracts, trainsand rouses, compensates, and holds its specialists. Individuals are a huge wellspring of esteem, so organizations can make an agreeable point of interest with great HR practices. For example, CIMB “Empowering agent to the merger” by concentrate on ability administration also capacity improvement to guarantee that the right individuals with the right abilities are conveyed for the right employments.

Technological development– These activities identify with overseeing and preparing data, and additionally securing an organization’s information base. Minimizing data engineering expenses, staying present with innovative advances, and keeping up specialized perfection are wellsprings of quality creation. For example, CIMB’s business scope is to give brought together data and administrations to all specialties units and workers and to serve as a key accomplice and worth included giver to CIMB Niaga’s vision by receiving IT administration gauges and best practice. Leverage all potential collaborations procured through the merger by executing the most steady and available IT structural engineering and stable.

Infrastructure – These are an organization’s help supportive networks, and the capacities that permit it to keep up day by day operations. Bookkeeping, lawful, authoritative, and general administration are illustrations of essential foundation that organizations can use further bolstering their good. For example, the CIMB Compliance, Corporate Affairs & Legal is in charge of all Compliance, Corporate and Legal Undertakings of the Bank. Ensures that all activities did by CIMB Niaga is in consistence with laws and orders of the Central Bank. Plays an essential part for interchanges between the CEO and administration of all CIMB Niagabusiness units. Manages corporate interchanges and financial specialist relations especially as they identify with corporate activities. It also manage interchanges with CIMB Group and other vital financial specialists to present and push the validity of administration, fabricate the execution track record of methodologies, the possibilities of the bank, furthermore business.

2)   How has the bank used the power of technology to gain a competitive advantage?

CIMB bank, a pioneer in portable saving money in Malaysia contrasted with other residential banks. Versatile keeping money can do some exceptional capacities, for example, survey record offset, finding ATM and limb areas and changing over coinage.Top of FormCIMB bank is one of the first banks in Malaysia to incorporate online networking into its versatile framework. CIMB likewise had taken advantage of Facebook to permit companions to send cash with an application called Auto pay, which incorporates web managing an accountabilities and stretches elective conveyance channels with long range interpersonal communication components.Bottom of Form It might be getting to anyplace and there be no transaction charges. So that, CIMB ready to contend with different banks by give propel innovation offices, for example, portable keeping money. It makes the clients feel more comfort. Other than that, CIMB bank additionally ready to oversee outside trade presentation through web managing an account. The bank had given offices that open a remote cash record to make less demand trade between nations. CIMB rival different bank by giving supporting apparatuses and methods through web managing an account.

CIMB bank utilized the force of innovation further bolstering increase a good fortune by utilization take number engineering to stay away from extortion in transaction or web saving money. It likewise gives others administrations to client that can make them simpler to utilize and to do a transaction quick, for example, cash exchange inside bank or other bank inside brief time and prompt exchange inside a bank by utilizing versatile applications for the android and IOS further bolstering increase good fortune with other banks.The electronic framework that this bank utilizing; for instance no compelling reason to top of the structure to do any transaction either withdraw cash or store cash in a ledger, simply just bring the plastic to the counter or ATM machine to do any transaction. CIMB bank supervisors can now utilize refined information driven and archive driven which is Decision Support Systems (DSSs) to acquire data which was kept quite a while back in filling cupboards or information stockpiles in the machine itself. As a rule, supervisors and officials of the banks are encountering data over-burden and are experiencing issues discovering the right data when it is required. Possibly, this creative choice helps supportive networks which known as (DSSs) unquestionably yield advantage for the bank administration or at any rate keep up its focused position. This framework would ready to help with diminishing waste in operation and stock administration. Deals can make a real cost advantage by expanding proficiency or disposing of quality chain exercises. Case in point, a bank like CIMB may decrease costs by utilizing another DSS to unite the quantity of steps and minimize the quantity of staff hours required to affirm advances. This innovation clearly can now and then keep on lowering methodology costs. CIMB additionally gives exchange administrations to the merchants .CIMB bank offers both routine and Islamic exchange financing administrations, backed by the wide system of extensions which develop over the outskirt. The brokers will feel comfort and exchange at great cost by simply get to CIMB internet managing an account. The force of innovation will make the client’s life more comfortable.

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CIMB gives administrations like Auto bills. This is an online administration of CIMB Bank for shippers to process and stay informed concerning their clients repeating instalments through MasterCard or platinum card. Auto Bill profit traders  in the method for  quick and secured instalments from clients, for example, ensured settlement for sanction transactions from the bank, enhanced money stream and accumulation, decreased expense of money and check taking care of, lessened regulatory paper work and instalment accumulations, brief and simple to appreciate reports and low set-up and venture cost. It’s an easy to use which like it is possible with the method for online review of record transaction status and result, obliges no project establishment , showcases transforming status, simple to alter the data document design , permits affirmation or check before the document is transferred and simple and advantageous yield and report download. Furthermore, the association can work their business with CIMB Bank’s Cash Management Solution, where, the association individuals can control their day by day money stream needs, for example, the scope of instalments, accumulations and liquidity instalments.The most recent engineering and security gimmicks can help association to meet business necessities. This sort of new innovation awes the association or people and enhance faithfulness of clients towards the CIMB bank. It demonstrates that the bank ought to have the capacity to contend with different banks. These days, NFC (Near Field Communication) one of innovation that CIMB utilizes or stopped within to any cell phone. This innovation used to pay numerous sorts of bill in ordinary living by utilizing cash sparing within internet saving money. At long last, if a buyer need pay a contraption that purchased from Sen-Q, customers can utilize their hand telephone and press a catch, the bill will naturally pay. From here, it has demonstrated that CIMB bank utilized the force of engineering further bolstering addition a good fortune.

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