Al Mashreq Bank Information System

Al Mashreq Bank is among the renowned financial institutions in the United Arab Emirates. The bank is tactically present in various regions of the world, and that is in Europe, Africa, the Middle East as well as in Asia. The performance that the bank has established in the economies that it represented cannot be ignored. The span to which it is rooted in these economies is exemplary because this can be justified with the number of returns it is able to generate on an annual basis. The bank is also seen to be a leader in innovativeness in these economies. This is visible through the creative investment ideas that the bank is able to develop and initiate in these economies too as to fuel investment. These achievements do not go only by sayings of people but by its ability to win the Euromoney Awards for more than five times since 1995.

Historical Background

The institution was established back in 1967, and at this time, it was known as the Bank of Oman (AL Mashreq Bank, 2015). It was also limited to Dubai alone when it was founded. Over the years, Al Mashreq Bank has extended tremendously as it has conquered many new economies and opened its affiliates in new places. (AL Mashreq Bank, 2015). During this time, when its fortieth anniversary was celebrated back in 2007, the name of the institution was rebranded to Al Mashreq Bank, since the establishment of the bank has rapidly expanded to occupy the position of the most advanced and the largest financial institution in the United Arab Emirates region.

This amazing performance is attributed to its ability to win offers by merging innovations with other entities, being consistent in delivering its services as well as being prudent to its customers and the stakeholders in general. These qualities have played a significant role in transforming the institution into what it is currently. Hence, its ability to serve the world, with a lot of stability, generates enough profit and still focuses on the consumers.

Nevertheless, this cannot be achieved if a lot of attention is paid to the servicing department or the banking department, which deals with all the transaction activities that the bank undertakes. This section is very important to the bank because it is charged with the responsibility of dealing with the clients of the institution as well as its other main stakeholders. The section has the obligation to conduct various transactions with the customers of the entity by accessing their bank account and providing information about the funds they deposit, withdrawing or transferring them to other facilities. Besides, the same section interacts constantly with clients to be able to promote the key business of the entity (Rainer & Casey, 2011).

Business Roles

The entity has diverse business roles in the region. For example, it can provide services to their clients. The bank is acquainted with the agency with which they have financial issues at the time. This fact makes the process of applications and receipt of loans not only convenient but also very fast and easy. Thus, the customers have been given the ability to apply for proposal loans and still receive them in a period of around twenty-four hours. The institution also makes expenditure in areas such as school fees simple and affordable because it provides Cash Back cards. This helps the clients cut costs in their expenses because there are waivers and bonuses connected to each form of expenditure in this category. This is evident in the case where clients possessing Smart Saver Titanium Credit cards are awarded ten percent cash back on their school fee expenditure for local and international purchases (Rainer & Casey, 2011). This promotes savings among the customers and enhances investment with the entity.

The business world really needs a strong national workforce to help promote investment as well as the drive to generate wealth. Al Mashreq Bank is the leading banking institution in the United Arab Emirates that has been able to demonstrate this capability (AL Mashreq Bank, 2015). This is justified by its winning of the Best Employer Award granted by the Dubai Women`s College, which indicates the outstanding role the institution plays in the banking sector.

The influence the bank has had over the most significant industries in the region, namely such as aviation, real estate, media energy, tourism, as well as education and information technology, cannot be underestimated. This has been possible due to its skill to finance different entities and allow them to grow to economic stability, which has been achieved through constant partnership with these industries and contributing to economic outbursts in the United Arab Emirates region. Particularly, vast partnership with other entities in the Dubai region has led to strengthening the economic stability of the region. Such success became possible through effective management within the company boosted by the usage of appropriate information systems.

The Information System used in Al Mashreq Bank

In this case, the information system refers to a system that consists of people as well as computers. Hence, it is a system that an entity utilizes to run a computer database. The choice of system is important because it determines the ability of the organization to collect and use the information from the clients effectively as well as ensures that the security and confidentiality of this information are assured to customers and the possibility of a breach is reduced as much as possible.

The Al Mashreq Bank utilizes the Transaction Processing System, which is an information system that helps the bank to consolidate information, prepare storage mechanism for the collected data, modify as well as retrieve it later when needed for other uses. This information system is largely used by Islamic Banking institutions in Dubai. It is effective in the sense that it allows the entities to quickly manipulate the transaction information they have in order to enhance the streamline flow of data as well as ensure that processes in the enterprise progress systematically all through.

The other information system utilized by the Bank is the Payment and Settlement system. It has multiple relevances, specifically, it helps in processing payments which are considered to be of High-Value. It also performs the role of clearing cheques, enhancing ATM sharing schemes as well as protection of wages. Additionally, ABIS systems work to help in their treasury banking and retail banking modules, while AdTek is normally used by the entity to facilitate their mid-market clients in accessing banking services and promoting faster delivery of banking services.

Classification of the Information System

This system has been classified in different categories based on the purpose it is attached to fulfill. The categories vary all through from client registration into the banking system to the receipt of deposits and saving of different clients in the region. The classification is as follows.

Operations Support System

This system promotes normal operations in the company; for instance, helps in the creation or opening of accounts, which takes the form of input where the employee collects information of a given client who would like to create an account with the bank (Wahlberg, Strandberg, Sundberg & Sandberg, 2009). The system then processes the data by creating two files in which one is the transaction file and the other one is the master file. This gives an output of a new account created in the system.

Transaction Processing System (TPS)

This system assists the company in processing an automated transaction; specifically, it helps in the development of ATM machines and their operations. The machine is used to conduct normal financial transactions without involving physical employees. In this case, the system is a new trend that gives the possibility to realize the transactions like banking, depositing of cash as well as checking of balance by entering his or her credit card then keying in the password (Wahlberg et al., 2009). This gives the authentication for the client to order the desirable device for receiving the money. After this, the clients give their order and are served. Another example of the TPS in the bank is the cheque system that helps obtain specified information that facilitates different transactions.

Process Control System

Under this system, the bank makes financial decisions without involving human action. This is based on financial indicators such as the balance of payment, profit, loss, and liquidity. In this case, certain information is entered and computerized to give the intended outcome to control the process. For example, the company is able to increase interest rates depending on economic status, which acts as critical information.

Enterprise Collaboration System

The company has an enterprise collaboration system to enable it to relate to other financial institutions. In this case, the IT department has an interactive website that promotes communication with other enterprises. This system is also used to share data with other banks to determine its competitiveness in the market.

Benefits Achieved

The application of the Transaction Processing System has had an impact on the way the bank operates as well as serves its clients. This has been seen in its role to increase the volumes of clients’ deposits and the withdrawal of money from their bank accounts. This makes the process very easy and convenient. It also prevents the cases of breach of security, thus enhancing the protection of their customer’s financial information (Richard & Michael, 2012).

In the same case, there has been noted an improvement in the rate at which this institution serves its clients. Thus, the proper keeping of client information and adoption of an operating system allows quick access to client information, hence, enhancing their usage for a given transaction.

In the enterprise application, the information system assists the clients in purchasing different commodities anywhere they want at their own convenience (Richard & Michael, 2012). As a result, the information system has increased the rate of utilization of its banking services.

Utilization of IS in the Place

The system has been used for making loans affordable to people, and consequently, drawing more customers to Al Mashreq Bank. This has made financial activities as well as transactions faster and easier. The rate of investment has also been on the rise because most people have the capacity to access this loaning service without any obstacles (George, 2005). The system has also been used to purchase items and to do the transactions. This simplifies the life of common people because there is no stress of walking around with large sum of money, which has more risk than using a credit card.

Suggestion for Improvement

It would be much more beneficial and greater improvement if the bank established accounts that would allow employers to transact internationally. This would have deprived the bank of the necessity to use the services only in the UAE region, as the region has grown to attract the focus of the world in business and other forms of investment. Therefore, it is important for the bank to make its transactions go international by developing a medium known as the international banking account number.

Conclusion

The impulse which the Al Mashreq Bank has created in the United Arab Emirates is far much outreaching. Its contribution to the development and the greater banking service delivery cannot be overlooked because it has helped to uplift the economic conditions of the region. The numerous innovative ideas and investment opportunities it offers based on its services have brought great results. Consequently, the Al Mashreq Bank still takes the center stage of commercial banking.