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KIGALI INDEPENDENT UNIVERSITY
(ULK)
FACULTY OF ECONOMIC SCIENCES AND
MANAGEMENT
DEPARTMENT OF MANAGEMENT
P.O.BOX. 2280 KIGALI -
RWANDA
«MANAGING INFORMATION SYSTEMS
FOR A BETTER BANKING SERVICES»
The case study of FINABANK SA
Kigali main branch (2004-2008)
A dissertation submitted to the faculty of Economic
Sciences and Management in partial fulfillment of the academic requirements for
the award of a «Bachelor's» degree in Management.
By HABARUREMA Jean Damascene
Supervisor: Okoko OSAMBO
Kigali, November 2009
DEDICATION
To the Lord Almighty God;
To our beloved parents: Our Mother Leoncia MUGOYIKAZI and our
grand-Mother Pricilla
NYIRABEZA
To FARG: The Genocide Survivors Assistance Fund of Rwanda
To
our family;
To FINABANK Top Management;
To all of our friends and
Colleagues,
We dedicate the result of our scientific research.
ACKNOWLEDGEMENTS
This work would never come to the end without the assist of many
people. We are grateful to all who have contributed to the realization of this
scientific research.
May, our deepest appreciations goes to the Government of
Rwanda for their positive contemplation by creating fund as FARG is concerned;
if it couldn't be their efforts we could never enter ULK's gates. Also our
deepest thanks goes to our lovely Campus and his Excellency ULK president and
founder, Prof, Dr. RWIGAMBA Balinda for the advices he gave us for each and
every beginning of the academic year.
Our special thanks go to Mr. Okoko OSAMBO who supervised our
entire research work and gave our good academic advices, as well as allowed our
distressing his busy schedule to contact him anytime we needed his assistance
to complete this work.
Finally, our thanks goes to «group number one of year four,
Management, day session,» which we belonged, for provided us with moral
support.
May Almighty God bless all of you, in the name of Jesus
Christ!
DECLARATION
I, HABARUREMA Jean Damascene, declare that, except where
otherwise indicated, this document is entirely my own work and has never been
submitted in whole or in part to any other university.
Signature: Date:
ABSTRACT
The research study was on «Managing Information Systems
for better banking services». It looks a case study of FINABANK SA Kigali
main branch. The objectives were; to investigate upon the Management of
Information System within FINABANK SA and to know whether the Management
Information Systems contributes significantly to the better banking services of
FINABANK for the 2004-2008 time frames. The hypothesis stated as «FINABANK
SA manages effectively its Information Systems, means, in relation to the
scientific theoretical presented framework and that the Management Information
Systems contribute to the better banking services of FINABANK SA for the
2004-2008 time frame. The researcher used both the primary data by use of
structured interviews, and observation techniques and secondary data gotten
mainly from documentaries. Research findings revealed that FINABANK implements,
as it should, the Management Information Systems and its components
significantly contribute to the better banking services of FINABANK SA.
LIST OF ACRONYMS AND ABBREVIATIONS
ALCO : Assets & Liabilities Committee
ALU : Arithmetic and Logical Unit
ATM : Automatic Teller Machine
BACAR : Banque Continentale Africaine au Rwanda
CD : Compact Disk
CEO : Chief Executive Officer
CEO : Chief Executive Officer
CPU : Central Processing Unit
CRI : Crédits, Risques et Impayés
CRT : Cathode-Ray Tube
CSR : Corporate Social Responsibility
DVD : Digital Versatile Disc
EXCO : Executive Committee
FARG : Genocide Survivors Assistance Fund of Rwanda
FINA : Financial Institution for Africa
GUI : Graphical User Interface
HP : Hewlett Packard
HRD : Human Resource Department
IT : Information Technology
LAN : Local Area Network
LCD : Liquid Crystal Display
MIS : Management Information Systems
NBR : National Bank of Rwanda
NIC : Network Interface Card
PC : Personnel Computer
P.O. Box : Post Office Box
RAM : Random access memory
RDB : Rwanda Development Board
RDB : Rwanda Development Board
ROM : Read Only Memory
SAN : Storage Area Network
SME : Small and Medium Enterprise
LIST OF FIGURES
(Page N°-)
Figure-1: MIS Terminology 11
Figure-2: Dimension of Information 13
Figure 3: Management Information Systems (MIS) Components 16
Figure -4: Hardware components of a computer system. 17
Figure-5: Input devices 18
Figure-6: Output devices 20
Figure-7: Classification of the computer 22
Figure-8: Equinox Banking System 33
Figure-9: Equinox Banking System's interface 42
Figure-10: New credit declaration interface from CRI system:
44
Figure-11: New credit declaration interface from BNR system
software 45
Figure-12: Risk situation interface from CRI system Software:
45
Figure 13: Risk situation interface from BNR System software
46
Figure-14: Credit arrears report from BNR System software 46
Figure-15: Leasepac system software 47
Figure-16: Applicant information interface from LEASEPAC software
48
Figure-17: Debit interface of BNR System Software 49
Figure 18: Sequential and parallel process 52
Figure-19: A Storage Area Network (SAN). 53
Figure-20: Credit analysis procedure 55
Figure-21: Employee mouvement situation into FINABANK 59
Figure-22: Impact of IT infrastructures to FINA performance 64
Figure-23: Impact of people to FINA performance 73
LIST OF TABLES
(Page N°-)
Table-1: Maslow's hierarchy of needs 27
Table-2: Equinox System hardware 32
Table-3: Video Surveillance Hardware 35
Table-4: Queue Management Hardware 37
Table 5: Communication Hardware 38
Table-6: Fire safety equipments 39
Table-7: General conclusion 76
TABLE OF CONTENTS Page N°
DEDICATION II
ACKNOWLEDGEMENTS III
DECLARATION IV
ABSTRACT V
LIST OF ACRONYMS AND ABBREVIATIONS VI
LIST OF FIGURES VIII
LIST OF TABLES IX
TABLE OF CONTENTS X
GENERAL INTRODUCTION 1
1. SCOPE OF THE STUDY 2
2. PROBLEM STATEMENT 3
3. HYPOTHESES 4
4. SIGNIFICANCE OF THE STUDY 1
5. OBJECTIVES OF THE STUDY 5
6. Research methodology 5
6.1. Techniques USED 5
6.2. METHODS USED 7
7. CHAPTERIZATION OF THE STUDY 9
CHAPTER 1 : THE LITERATURE REVIEW 10
1.1. INTRODUCTION 10
1.2. MEANING AND ROLE OF MIS IN THE ORGANIZATION 11
1.2.1. Management 11
1.2.2. Information .. 12
1.2.3. Systems 15
1.3. COMPONENTS OF MIS 15
1.3.1. HARDWARE 16
1.3.2. SOFTWARE 23
1.3.3. DATA 24
1.3.4. PROCEDURES 25
1.3.5. PEOPLE 25
CHAPTER 2: MANAGEMENT INFORMATION SYSTEMS IN FINABANK
28
2.1. PRESENTATION OF FINABANK 28
2.1.1. FINABANK-Rwanda Background 28
2.1.2. FINABANK Corporate Governance 29
2.1.3. FINABANK's Mission 30
2.1.4. FINABANK Social Responsibilities 30
2.3. THE «HARDWARE» COMPONENT OF THE FINABANK
INFORMATION SYSTEM 31
2.3.1. Equinox Banking Hardware 31
2.3.2. Video Surveillance Hardware 35
2.3.3. THE Queue Management Hardware 36
2.3.4. Network Communication hardware 37
2.3.5. Fire Safety Hardware 38
2.4. THE «SOFTWARE» COMPONENT OF THE FINABANK'S
INFORMATION SYSTEM 39
2.4.1. The FINABANK's System Software 40
2.4.2. FINABANK's Application Software 41
2.5. THE «DATA» COMPONENT OF THE FINABANK'S INFORMATION
SYSTEM 50
2.5.1. Introduction 50
2.5.2. The Database and Database Management System (DMS) in
FINABANK 51
2.5.3. FINABANK Data Processing 51
2.5.4. FINABANK's Data Storing 52
2.6. THE «PROCEDURES» COMPONENT OF FINABANK'S
INFORMATION SYSTEM 54
2.6.1. Account opening procedure 54
2.6.2. Employee recruitment procedure 54
2.6.3. Credit Analysis Procedure 55
2.6.4. Fire safety procedure 56
2.6. THE «PEOPLE» COMPONENT OF FINABANK'S INFORMATION
SYSTEM 56
2.6.1. Introduction 56
2.6.2. Being an Information-Literate Knowledge Worker 57
2.6.3. Being a Motivated Employee 58
2.7. CHAPTER 2: SUB CONCLUSION 60
CHAPTER 3: BENEFITS OF MANAGEMENT INFORMATION SYSTEMS
(MIS) TO FINABANK BETTER BANKING SERVICES 61
3.1. INTRODUCTION 61
3.2. BENEFITS OF «HARDWARE» TO FINA BETTER BANKING
SERVICES 61
3.2.1. Benefits of the Equinox Banking Hardware 61
3.2.2. Benefits of the Video Surveillance Hardware 62
3.2.3. Benefits of the Queue Management Hardware 62
3.2.4. Benefits of the Network Communication hardware 63
3.2.5. Benefits of the Access Control Hardware 63
3.2.6. Benefits of the Fire Safety Hardware 63
3.3. BENEFITS OF «SOFTWARE» FOR FINA BETTER BANKING
SERVICES 66
3.3.1. Benefits of the EQUINOX Banking Software 66
3.5. BENEFITS OF «DATA» FOR FINA BETTER BANKING
SERVICES 69
3.4. BENEFITS OF «PROCEDURES» FOR FINA BETTER BANKING
SERVICES 70
3.4.1. Benefits of the Account opening procedure 70
3.4.2. Benefits of Credit analysis procedure 71
3.4.3. Benefits of Employee recruitment procedure 71
3.4.4. Benefits of Fire safety procedure 71
3.5. BENEFITS OF «PEOPLE» FOR FINA BETTER BANKING
SERVICES 72
3.6. THE CHAPTER 3: SUB CONCLUSION 74
GENERAL CONCLUSION 75
OBSERVATIONS: 80
SUGGESTIONS: 81
BUBLIOGRAPHY 83
ANNEXURE
GENERAL INTRODUCTION
1. SIGNIFICANCE OF THE STUDY
According to LAUDON, K and LAUDON, JP, economies of different
countries are facing the third economic revolution. During the first
revolution, their economies have transformed themselves from an artisan one to
an agrarian powerhouse, capable of feeding large segments of the world
population. In the second revolution, they transformed themselves from an
agrarian society to an industrial power based society.
Now, in the third revolution, in progress, these countries are
transforming themselves into the knowledge and information based service
economy, called «the knowledge and information based service
economy»; an economy into which information, technology and systems take a
great importance.1
Today most people no longer work in farms or factories but
instead they are located in sales, deliveries, education, healthcare, banks,
insurance firms, law firms, etc.
The rhythm of these changes accelerates and continues, today
does not look like yesterday and tomorrow will be completely different. The
jobs will primarily involve working with information, managed by information
systems.2
This study has been chosen so as to investigate upon the
usefulness of Information Systems to the growth of FINABANK SA.
Richards M. stated that Management theory and practice have
undergone radical
changes in the past two decades; these changes will
inevitably continue and even
accelerate. It is no longer enough that
managers be skilled in a functional specialty such
1 LAUDON, K. and LAUDON, J.P. «Management
Information Systems: Organization and Technology,» Prentice-Hall of
India: New Delhi, 1999, p.6
2HAAG, 2nd
S., CUMMING, M. and DAWKINS, J. »Management Information
Systems for the Information Age,»: Edition, McGraw Hill/Irwin, Boston,
2000, p.14
as engineering or marketing and that they understand the
traditional functions of planning, organizing, and controlling.3
Something more is needed, the systems approach to management,
coupled with the ability to participate to the design and the utilization of
computer-based information systems. Indeed, the systems approach is the new
philosophy of managerial life. We are now in the «age of systems.
We are sure that this kind of research comes at right time and on
right place because it leads to following results:
-Provide a more up-to-date and integrated treatment of
organization and management, as well as emphasize the utilization of management
information systems to improve the art of managing banking institution.
-To get practicing managers and students of management to
«think systems».
This kind of research is not only interesting for those initiate
to computer system management but also for the computer specialist by improving
the utility of the systems.
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