Executive Summary
IT infrastructure is the shared technology resources that provide the platform for the firm’s specific information system applications. It infrastructure includes hardware, software, and services that are shared across the entire firm. Major It infrastructure components include computer hardware platforms, operating system platforms, enterprise software platforms, database management software, internet platforms and consulting services and systems integrators. IT infrastructure investment can be viewed as one of the value creation mean for a business firm.
Banks are most active financial intermediary in today’s world. As a financial institution bank mainly operate to communicate among persons and effectively works as safeguard among them in this age globalization. In recent econoour banks plays a vital role to entrust international trade, it’s quite impossible to commit international without help of banks and it also properly works to hedge away risk international traders. Banks operates most effectively to settle any transactions within different countries either trade purposes or personal purposes. In this era of technological advancement every bank is required to perform its core operations using sophisticated software platforms. Internet broadens the scope of the offerings provided by banks to its customers in one hand, on the other hand this also impose greater risks and complexities for any bank to manage, protect and restore its operations in an event that is unusual. Dependency on the technology infrastructure make banking institution to take extra measures to maintain its functioning’s in proper and efficient ways.
Mercantile Bank Limited is a specialized financial institution that performs most of the standard banking services and investment activities on the basis not only profit sharing but also social partnership. The core banking activities are performed in computerized platforms. The bank has its own IT department, situated in Uttara and Sunmoon Tower at Motijheel, to overlook the key infrastructures of the technological resources and maintenance of the bank’s core IT.
1 Company Profile
Mercantile Bank Limited was incorporated in Bangladesh as a Public Limited Company with limited liability under the Bank Companies Act, 1991 on 20 May 1999 and commenced commercial operation on 02 June 1999. The Bank went for public issue of shares on in 2003 and its shares are listed with Dhaka Stock Exchange and Chittagong Stock Exchange. Mercantile Bank Limited emerged as a new commercial bank to provide efficient banking services and to contribute socio-economic development of the country.
Mercantile Bank Limited has gained firm confidence in the minds of its clients within a short period of its operation. The success is primarily attributed to prompt and bold decision-making, efficient and cordial services, economic use of resources and introduction of new financial products and technologies. The continued endeavors of the Management Staff of the Bank under prudent guidance and timely support of the Board of Directors have substantially contributed to success of the Bank. The Board of Directors takes this opportunity of expressing its heart-full appreciation and gratitude to the Government of the People’s Republic of Bangladesh, Bangladesh Bank, Securities and Exchange Commission (SEC), Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), and Registrar of Joint Stock Companies and Firms for their help and assistance, valuable guidance and advice extended to the Bank from time to time.
Company Chronicle
Registered Name : Mercantile Bank Limited
Corporate Slogan : “Efficiency Is Our Strength”
Date of Incorporation : 20th May 1999
Authorized Capital : TK. 8000 million
Paid up Capital : TK. 4072 million
Technology used : Member of SWIFT, Online Banking, UNIX based computer system
SWIFT code : MBLBBDDH
2 IT Infrastructure
Information technology infrastructure is the integrated framework upon which digital networks operate. This infrastructure includes data centers, computers, computer networks, Database Management devices, and a regulatory system. It accelerate the operation of a whole enterprise
This can be classified into
1. Physical devices and
2. Software
This encompasses the set of firm-wide services including:
· Computing platforms providing computing services
· Telecommunications services
· Data management services
· Application software services
· Physical facilities management services
· IT management, standards, education, research and development services
3 IT Infrastructures of Mercantile Bank Limited
Computing platforms
MBL uses large mainframe, desktop and laptop computers from Dell Inc, and Internet appliance from Oracle to connect employees and customers into a coherent digital environment.
Telecommunications services
MBL provides only data and voice connectivity to the customers where video conferencing is used for internal communication and vendor’s services.
Data Management Services
MBL uses Tivoli Service Automation Manager for storing, managing and analyzing the corporate data.
Physical facilities management services
Both in house and outsourced (especially vendor’s persons) engineers develop and manage the physical installations for computing, telecommunications and data management services.
4 IT Infrastructure Components
Seven main components of IT Infrastructure are
4.1 Computer hardware platforms
MBL uses server, PC and workstation computers produced by Dell Inc. Networking hardware is provided by Cisco Systems, Inc.
Workstation: A workstation is a computer designed for technical or scientific applications. Intended primarily to be used by one person at a time, they are commonly connected to a local area network and run multi-user operating systems. Workstations offered higher performance than mainstream personal computers, especially with respect to CPU and graphics, memory capacity, and multitasking capability.
4.2 Operating system platforms
MBL uses Windows XP, Server 2003 and 2008 and Linux for operating computer hardware platforms.
Linux: Linux is a widely ported operating system kernel. The Linux kernel runs on a highly diverse range of computer architectures: in the hand-held ARM-based iPAQ and the mainframe IBM System z9, System z10; in devices ranging from mobile phones to supercomputers. Specialized distributions exist for less mainstream architectures. The ELKS kernel fork can run on Intel 8086 or Intel 80286 16-bit microprocessors, while the Clinux kernel fork may run on systems without a memory management unit. The kernel also runs on architectures that were only ever intended to use a manufacturer-created operating system, such as Macintosh computers (with both PowerPC and Intel processors), PDAs, video game consoles, portable music players, and mobile phones.
4.3 Enterprise software applications
Enterprise software help management, employees and customers in a digital coherent environment. MBL uses Temenos T24 and PC Bank 2000 for integrating whole business enterprise.
Temenos T24
TEMENOS T24 developers integrated all their experience in the banking field in their system which operates in real time environment and provides support to all types of banks (wholesale, retail, investment) and other financial institutions.
The TEMENOS T24 retail banking functionality includes:
1. Teller applications
2. Savings accounts
3. Mortgage processing with Past Due obligations
4. Funds transfers and standing orders
5. Cheque and card management
6. ATM Interface Branch server processing
TEMENOS T24 is an integrated banking package which automates all banking work. By using the term “integrated package” refer to the system’s capability to cover all operational requirements of the bank with regard to Retail, Wholesale, Treasury and Private Banking for front, middle and back offices.
PC Bank 2000
PC Bank 2000 ease banking operation by doing the following banking tasks.
1. Balance your bank accounts quickly and easily by downloading current information on balances and transactions for your Huntington accounts
2. Pay Bills
3. Send us secure emails
4. Transfer funds
5. Maintain a register
6. Perform detailed tracking and reporting for all of your accounts, even those not at Huntington
4.4 Data management and storage
MBL uses Oracle and Microsoft SQL server for storing and analyzing corporate data.
SQL Server
Microsoft SQL Server is a relational database management system developed by Microsoft. As a database, it is a software product whose primary function is to store and retrieve data as requested by other software applications, be it those on the same computer or those running on another computer across a network (including the Internet). SQL provides value added services on top of the core database management system. These services either run as a part of some SQL Server component or out-of-process as Windows Service and presents their own API to control and interact with them.
1. Service Broker
2. Replication Services
3. Analysis Services
4. Reporting Services
5. Notification Services
6. Integration Services
7. Full Text Search Service
8. SQLCMD
9. Visual Studio
10. SQL Server Management Studio
11. Business Intelligence Development Studio
4.5 Networking/telecommunications platforms
MBL uses Linux and cisco router for connecting the whole enterprise through networking and telecommunication platforms. All telecom operators are used for telecommunication services by focusing on GP and Robi. Broadband network is also used for providing networking services to the firms.
4.6 Internet platforms
The major software application used for internet platform MBL are developed and maintained by Microsoft.
4.7 Consulting system integration services
MBL has continual renewal agreement with Thakral Information Systems Limited (TISL) for providing all software and application services.
Thakral Information Systems Limited (TISL): The Thakral Group entered Bangladesh in 1997 as Thakral Information Systems Limited (TISL) as a distribution partner to IBM, Lenovo, Cisco, Hp, Microsoft and Oracle. TISL represents IBM in Bangladesh as a Strategic Alliance Partner, responsible for sales and maintenance of IBM hardware, software and services.
Thakral One was formed in 2010 as an extension of Thakral Group with an aim to provide end-to-end value solutions for local organizations and conglomerates across industries like finance, telecommunications, manufacturing and public sector. Armed with highly skilled resources and various vendor certifications, Thakral One also draws on its expertise in technology and services from Thakral offices across the world.
Thakral One Bangladesh are resellers of Microsoft licenses and offer Microsoft Infrastructure and Sharepoint Solutions, among others. In addition to being a Temenos Banking Solutions Partner, Thakral One is also a key partner for Oracle Fusion Middleware, where we consult and implement soluitons like SOA, BPM and Identity Management.
5 Business Continuity and Disaster Recovery Management
Business continuity and disaster recovery management is critical for the control of the risk associated with the loss or damage of systems and system related infrastructure.
5.1 Critical Issues for Mercantile Bank Limited
· After physical destructions or damages, Business can be easily restored from the disaster and continued with normal business operation.
· But any major software dysfunction or failure of server is somehow critical and related to the vendor’s abilities to functionalize the whole software systems. Because any malfunction or defect of the enterprise applications is maintained and served by the software vendors.
· The probability of software malfunction or server failure is very low even in whole banking sectors of the country.
MBL classified disaster recovery management among Backup, Restoration and Business continuity plan for efficient and quick recovery from any possible disaster.
5.2 Back up
Data backup of Mercantile Bank Limited
MBL stores its corporate information in two servers located in Uttara and Sun Moon Star Tower, Dilkusha
Data are collected and instantly sent to Sun Moon Star Tower Server. This server is used for retrieving and analyzing corporate data afterwards.
For storing in backup server located in Uttara , data are accumulated for every two hours and sent for backup storage.
5.3 Restoration
Bank’s own employees and technical team can restore corporate data base and whole information systems from any physical damage or destruction (e.g. fire, building destruction from earthquake etc).
But, Bank’s own technical team and employees cannot restore business operation from any server failure or major software dysfunction. This is because enterprise software and application are mainly maintained by software suppliers/vendors.
5.4 Business Continuity
Normal business operation of the bank can be continued within 24 hours for any physical disaster of the bank: This is done by company’s own technical team.
6 Utilization of IT Infrastructure
Only 50-60 percent of existing IT infrastructure facilities are utilized by current business operation. That is the bank can serve twice of the existing customers within the current IT infrastructure.
7 Network Economy
The company’s marginal costs of IT infrastructure for any new customer are about to zero. MBL can serve twice of the current customers without having any additional IT expenditures.
8 IT Audit
MBL runs its internal IT audit annually. Strength of IT infrastructure and validity of backup and business continuity plan are tested in the IT audit.
IT monitoring sell of the Bangladesh Bank also audit IT infrastructure of all listed commercial banks including MBL annually on random basis.
9 IT Securities and Safety
Both physical access in the IT department and access to information system are strictly maintained.
Only authorized persons of the bank are allowed to enter IT department. Any external party visiting the IT department needs explanation of the purposes and permission from top management.
10 Software Acquisition
The software is outsourced from Oracle, IBM and Cisco systems, Inc.
The technical team of the vendors come in the bank and customized their core software application according to bank’s requirements. After implementation, MBL enter into an agreement with the vendors for serving any software and application defect or failure.
Findings
Ø The Bank should build in house software development team for securing and accelerating data restoration process in case of software or server failure or dysfunction.
Ø The company should develop in house software.
Ø IT audit should be made on shorter time interval e.g. quarterly or semi-annually.
Ø Business restoration plans from server failure or enterprise software application dysfunction need to be more specifically addressed.
11 Conclusion
Overall IT infrastructure of the Mercantile Bank Limited is moderately satisfactory. Their IT infrastructure is mainly outsourced from reputed software vendors. Services and maintenances are also done by software vendors on continuous renewal agreement.
IT infrastructure is the shared technology resources that provide the platform for the firm’s specific information system applications. It infrastructure includes hardware, software, and services that are shared across the entire firm. Major It infrastructure components include computer hardware platforms, operating system platforms, enterprise software platforms, database management software, internet platforms and consulting services and systems integrators. IT infrastructure investment can be viewed as one of the value creation mean for a business firm.
Banks are most active financial intermediary in today’s world. As a financial institution bank mainly operate to communicate among persons and effectively works as safeguard among them in this age globalization. In recent econoour banks plays a vital role to entrust international trade, it’s quite impossible to commit international without help of banks and it also properly works to hedge away risk international traders. Banks operates most effectively to settle any transactions within different countries either trade purposes or personal purposes. In this era of technological advancement every bank is required to perform its core operations using sophisticated software platforms. Internet broadens the scope of the offerings provided by banks to its customers in one hand, on the other hand this also impose greater risks and complexities for any bank to manage, protect and restore its operations in an event that is unusual. Dependency on the technology infrastructure make banking institution to take extra measures to maintain its functioning’s in proper and efficient ways.
Mercantile Bank Limited is a specialized financial institution that performs most of the standard banking services and investment activities on the basis not only profit sharing but also social partnership. The core banking activities are performed in computerized platforms. The bank has its own IT department, situated in Uttara and Sunmoon Tower at Motijheel, to overlook the key infrastructures of the technological resources and maintenance of the bank’s core IT.
1 Company Profile
Mercantile Bank Limited was incorporated in Bangladesh as a Public Limited Company with limited liability under the Bank Companies Act, 1991 on 20 May 1999 and commenced commercial operation on 02 June 1999. The Bank went for public issue of shares on in 2003 and its shares are listed with Dhaka Stock Exchange and Chittagong Stock Exchange. Mercantile Bank Limited emerged as a new commercial bank to provide efficient banking services and to contribute socio-economic development of the country. Mercantile Bank Limited has gained firm confidence in the minds of its clients within a short period of its operation. The success is primarily attributed to prompt and bold decision-making, efficient and cordial services, economic use of resources and introduction of new financial products and technologies. The continued endeavors of the Management Staff of the Bank under prudent guidance and timely support of the Board of Directors have substantially contributed to success of the Bank. The Board of Directors takes this opportunity of expressing its heart-full appreciation and gratitude to the Government of the People’s Republic of Bangladesh, Bangladesh Bank, Securities and Exchange Commission (SEC), Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), and Registrar of Joint Stock Companies and Firms for their help and assistance, valuable guidance and advice extended to the Bank from time to time.
Company Chronicle
Registered Name : Mercantile Bank Limited
Corporate Slogan : “Efficiency Is Our Strength”
Date of Incorporation : 20th May 1999
Authorized Capital : TK. 8000 million
Paid up Capital : TK. 4072 million
Technology used : Member of SWIFT, Online Banking, UNIX based computer system
SWIFT code : MBLBBDDH
2 IT Infrastructure
Information technology infrastructure is the integrated framework upon which digital networks operate. This infrastructure includes data centers, computers, computer networks, Database Management devices, and a regulatory system. It accelerate the operation of a whole enterprise
This can be classified into
1. Physical devices and
2. Software
This encompasses the set of firm-wide services including:
· Computing platforms providing computing services
· Telecommunications services
· Data management services
· Application software services
· Physical facilities management services
· IT management, standards, education, research and development services
3 IT Infrastructures of Mercantile Bank Limited
Computing platforms
MBL uses large mainframe, desktop and laptop computers from Dell Inc, and Internet appliance from Oracle to connect employees and customers into a coherent digital environment.
Telecommunications services
MBL provides only data and voice connectivity to the customers where video conferencing is used for internal communication and vendor’s services.
Data Management Services
MBL uses Tivoli Service Automation Manager for storing, managing and analyzing the corporate data.
Physical facilities management services
Both in house and outsourced (especially vendor’s persons) engineers develop and manage the physical installations for computing, telecommunications and data management services.
4 IT Infrastructure Components
Seven main components of IT Infrastructure are
4.1 Computer hardware platforms
MBL uses server, PC and workstation computers produced by Dell Inc. Networking hardware is provided by Cisco Systems, Inc.
Workstation: A workstation is a computer designed for technical or scientific applications. Intended primarily to be used by one person at a time, they are commonly connected to a local area network and run multi-user operating systems. Workstations offered higher performance than mainstream personal computers, especially with respect to CPU and graphics, memory capacity, and multitasking capability.
4.2 Operating system platforms
MBL uses Windows XP, Server 2003 and 2008 and Linux for operating computer hardware platforms.
Linux: Linux is a widely ported operating system kernel. The Linux kernel runs on a highly diverse range of computer architectures: in the hand-held ARM-based iPAQ and the mainframe IBM System z9, System z10; in devices ranging from mobile phones to supercomputers. Specialized distributions exist for less mainstream architectures. The ELKS kernel fork can run on Intel 8086 or Intel 80286 16-bit microprocessors, while the Clinux kernel fork may run on systems without a memory management unit. The kernel also runs on architectures that were only ever intended to use a manufacturer-created operating system, such as Macintosh computers (with both PowerPC and Intel processors), PDAs, video game consoles, portable music players, and mobile phones.
4.3 Enterprise software applications
Enterprise software help management, employees and customers in a digital coherent environment. MBL uses Temenos T24 and PC Bank 2000 for integrating whole business enterprise.
Temenos T24
TEMENOS T24 developers integrated all their experience in the banking field in their system which operates in real time environment and provides support to all types of banks (wholesale, retail, investment) and other financial institutions.
The TEMENOS T24 retail banking functionality includes:
1. Teller applications
2. Savings accounts
3. Mortgage processing with Past Due obligations
4. Funds transfers and standing orders
5. Cheque and card management
6. ATM Interface Branch server processing
TEMENOS T24 is an integrated banking package which automates all banking work. By using the term “integrated package” refer to the system’s capability to cover all operational requirements of the bank with regard to Retail, Wholesale, Treasury and Private Banking for front, middle and back offices.
PC Bank 2000
PC Bank 2000 ease banking operation by doing the following banking tasks.
1. Balance your bank accounts quickly and easily by downloading current information on balances and transactions for your Huntington accounts
2. Pay Bills
3. Send us secure emails
4. Transfer funds
5. Maintain a register
6. Perform detailed tracking and reporting for all of your accounts, even those not at Huntington
4.4 Data management and storage
MBL uses Oracle and Microsoft SQL server for storing and analyzing corporate data.
SQL Server
Microsoft SQL Server is a relational database management system developed by Microsoft. As a database, it is a software product whose primary function is to store and retrieve data as requested by other software applications, be it those on the same computer or those running on another computer across a network (including the Internet). SQL provides value added services on top of the core database management system. These services either run as a part of some SQL Server component or out-of-process as Windows Service and presents their own API to control and interact with them.
1. Service Broker
2. Replication Services
3. Analysis Services
4. Reporting Services
5. Notification Services
6. Integration Services
7. Full Text Search Service
8. SQLCMD
9. Visual Studio
10. SQL Server Management Studio
11. Business Intelligence Development Studio
4.5 Networking/telecommunications platforms
MBL uses Linux and cisco router for connecting the whole enterprise through networking and telecommunication platforms. All telecom operators are used for telecommunication services by focusing on GP and Robi. Broadband network is also used for providing networking services to the firms.
4.6 Internet platforms
The major software application used for internet platform MBL are developed and maintained by Microsoft.
4.7 Consulting system integration services
MBL has continual renewal agreement with Thakral Information Systems Limited (TISL) for providing all software and application services.
Thakral Information Systems Limited (TISL): The Thakral Group entered Bangladesh in 1997 as Thakral Information Systems Limited (TISL) as a distribution partner to IBM, Lenovo, Cisco, Hp, Microsoft and Oracle. TISL represents IBM in Bangladesh as a Strategic Alliance Partner, responsible for sales and maintenance of IBM hardware, software and services.
Thakral One was formed in 2010 as an extension of Thakral Group with an aim to provide end-to-end value solutions for local organizations and conglomerates across industries like finance, telecommunications, manufacturing and public sector. Armed with highly skilled resources and various vendor certifications, Thakral One also draws on its expertise in technology and services from Thakral offices across the world.
Thakral One Bangladesh are resellers of Microsoft licenses and offer Microsoft Infrastructure and Sharepoint Solutions, among others. In addition to being a Temenos Banking Solutions Partner, Thakral One is also a key partner for Oracle Fusion Middleware, where we consult and implement soluitons like SOA, BPM and Identity Management.
5 Business Continuity and Disaster Recovery Management
Business continuity and disaster recovery management is critical for the control of the risk associated with the loss or damage of systems and system related infrastructure.
5.1 Critical Issues for Mercantile Bank Limited
· After physical destructions or damages, Business can be easily restored from the disaster and continued with normal business operation.
· But any major software dysfunction or failure of server is somehow critical and related to the vendor’s abilities to functionalize the whole software systems. Because any malfunction or defect of the enterprise applications is maintained and served by the software vendors.
· The probability of software malfunction or server failure is very low even in whole banking sectors of the country.
MBL classified disaster recovery management among Backup, Restoration and Business continuity plan for efficient and quick recovery from any possible disaster.
5.2 Back up
Data backup of Mercantile Bank Limited
MBL stores its corporate information in two servers located in Uttara and Sun Moon Star Tower, Dilkusha
Data are collected and instantly sent to Sun Moon Star Tower Server. This server is used for retrieving and analyzing corporate data afterwards.
For storing in backup server located in Uttara , data are accumulated for every two hours and sent for backup storage.
5.3 Restoration
Bank’s own employees and technical team can restore corporate data base and whole information systems from any physical damage or destruction (e.g. fire, building destruction from earthquake etc).
But, Bank’s own technical team and employees cannot restore business operation from any server failure or major software dysfunction. This is because enterprise software and application are mainly maintained by software suppliers/vendors.
5.4 Business Continuity
Normal business operation of the bank can be continued within 24 hours for any physical disaster of the bank: This is done by company’s own technical team.
6 Utilization of IT Infrastructure
Only 50-60 percent of existing IT infrastructure facilities are utilized by current business operation. That is the bank can serve twice of the existing customers within the current IT infrastructure.
7 Network Economy
The company’s marginal costs of IT infrastructure for any new customer are about to zero. MBL can serve twice of the current customers without having any additional IT expenditures.
8 IT Audit
MBL runs its internal IT audit annually. Strength of IT infrastructure and validity of backup and business continuity plan are tested in the IT audit.
IT monitoring sell of the Bangladesh Bank also audit IT infrastructure of all listed commercial banks including MBL annually on random basis.
9 IT Securities and Safety
Both physical access in the IT department and access to information system are strictly maintained.
Only authorized persons of the bank are allowed to enter IT department. Any external party visiting the IT department needs explanation of the purposes and permission from top management.
10 Software Acquisition
The software is outsourced from Oracle, IBM and Cisco systems, Inc.
The technical team of the vendors come in the bank and customized their core software application according to bank’s requirements. After implementation, MBL enter into an agreement with the vendors for serving any software and application defect or failure.
Findings
Ø The Bank should build in house software development team for securing and accelerating data restoration process in case of software or server failure or dysfunction.
Ø The company should develop in house software.
Ø IT audit should be made on shorter time interval e.g. quarterly or semi-annually.
Ø Business restoration plans from server failure or enterprise software application dysfunction need to be more specifically addressed.
11 Conclusion
Overall IT infrastructure of the Mercantile Bank Limited is moderately satisfactory. Their IT infrastructure is mainly outsourced from reputed software vendors. Services and maintenances are also done by software vendors on continuous renewal agreement.
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