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 Name: Fatima Shoukat.

 Submitted to: Ma’am Seemab Qaiser.

 Assignment: Web Designing.
 Subject: Computers in Banking.
 Date: 25.03.2019
 Department: Management Sciences.
Computers in Banking:-
A bank can be defined as a financial institution, organization or a place that provides a financial
service, equally one can also defined bank as an establishment authorized by a government to
accept deposits, pay interest, clear checks, make loans, act as an intermediary in financial
transactions, allows the purchase of bills and checks or the purchase and sales of securities and
provide other financial services to its customers.
The first computers were people! That is, electronic computers (and the earlier mechanical
computers) were given this name because they performed the work that had previously been
assigned to people. “Computer” was originally a job title: It was used to describe those human
beings (predominantly women) whose job was to perform the repetitive calculations required to
compute such things as navigational tables, tide charts and planetary positions for astronomical
almanacs. A long time ago, people charged with the duty of collection and disbursements of tax
were encountering problems in calculations. In those days, the problems faced by the early
method of data processing involved the use of animal skin, feather, grains etc. were very difficult
for them to handle. These were later replaced by the use of pens, inks, papers, chalk, etc. just to
supplement human efforts in counting, recording, manipulating, sorting, etc. of data these
methods were so boring, frustrating, time consuming and also associated with some errors.
So further research continues, in France 1642 Blaise Pascal, at age 19 invented the Pascaline
as an aid to his father who was a tax collector in calculating columns of figures. The computer
has probably been introduced and the basic of its purpose is the processing of data into
information. The term data is a symbolic representation of facts about people, object or place. A
computer is a programmable electronic machine that performs high-speed mathematical or
logical operation or otherwise process information. In fact the importance of information to an
individual or organization cannot be over emphasized, in carrying out day-to-day activities. Every
individual, organization needs information. Banks and other financial institution are heavy users
of computers in maintaining customer’s accounts, ledger, updating, electronic fund transfer and
processing of huge amount of cheques, credit cards, and the major transactions that takes place
daily. The up coming automatic teller machines (ATM) already installed by most banks are the
most visible symbols of computer in the banking sector in Nigeria. They are of course everywhere
in Europe, America and Asia. The Automatic Teller machine (ATM) enable bank customer to
withdraw, recharge phones, transfer funds from their various accounts even when the bank is
closed physically. Each transaction made, the customer’s record is updated and he or she is
provided with a print out or notification. However the use of computer in the banking sector can
be an efficient tool in speeding up the process and reducing the cost of producing and
undertaking figure works. More effective control procedure in computerized system can bring
about sales budgeting and credit control. Many credit cards, smart cards, master cards can also
be used to withdraw money at an ATM and the online banking against the credit limit extended
to the card. Customers keep their money in the bank safely and it is paid out when needed by
means of cheques and other ways.

It’s hard to imagine banks without technology. In fact, computers have been in use in banking
since the 1950s, when Bank of America introduced a computer designed specifically for
processing checks. Each new decade has brought innovations that change the way banks
manage daily operations and serve customers. Today, you may not even leave your house to do
your banking. As much as technology has changed the use of the computer in the banking
sector, banks continue to adjust the way they do things.
Computers in the banking sector have enhanced customer service and productivity regarding
account management, while streamlining back-office activities. The biggest impact is in the area
of competition. Small banking institutions can access the same technology as large banking
institutions and, therefore, can compete with them more effectively for business.

The banking services include:-

a) Acceptance of deposits from customers.
b) Banking payments locally or internationally
c) Granting loans and advances.
d) Trading in securities
e) Clearing of cheques and similar instruments
f) Phone banking and internet banking facility
g) Mobile banking and Real Time Gross Settlement (RTGS)

Its major uses are as follows:-

Account Management:-
You may no longer get a free toaster when you open a new checking or savings account, but
the process is easier than ever. You can even open a new account online. On the banking side
of things, this eliminates the need to have someone on-site at each branch, manually
processing and approving applications. Once an account is open, the bank manages everything
electronically. Still, many banks maintain local branches with full-time account representatives
to help nearby customers who want that personal touch.

Electronic Transactions:-
Those who hadn’t yet reached adulthood by the end of the last century may not remember the
days of check writing. Businesses often had to wait for a check to “clear,” which meant
approval by the payer’s financial institution, to access the funds they deposited. The use of
computers have sped up that entire process, with instant check authorizations. Checks have
mostly become an afterthought, thanks to debit cards that take funds automatically from a
person’s account. Mobile payments will take that even further, letting customers pay with a
mobile device or wearable, eventually taking plastic out of the equation .

ATMs (Automated Teller Machines)

As much as experts claim we’re heading toward a cashless society, it remains the most used
payment method in the U.S., according to Getting cash from your bank account
still requires a trip to an automatic teller machine, known as an ATM. Since the first ATM was
installed in 1969, the technology has evolved, making it easier for customers to deposit
money, as well as withdraw. Although human tellers are still necessary, banks are aiming to
have them focus on higher-level activities as ATM technology handles most basic transactions.
Online Banking:-
Furthering the do-it-yourself banking model is online banking, which allows customers to pay
bills, view account balances, transfer funds from one account to another, pay friends and much
more. Financial institutions have also given consumers control over their own security by
adding features like the ability to freeze a missing credit card to avoid further charges. Over
time, these controls will only increase as technologies like biometrics and facial recognition
keep accounts safe.

Hardware Technology:-

In the 1960s, bank hardware consisted of a mainframe and a punch card machine. Punch cards
contained customer account information and were read into the main system by a punch card
machine. Midrange and client/server hardware configurations, which are no larger than a
minitower system, can run an entire bank in addition to receiving transactions from affiliated
bank branches. These new hardware technologies can process more transactions than legacy
banking hardware systems. Hardware technologies have enabled advances into wireless banking
and telecommunications banking.

Web-based Banking:-

Web-based banking systems use a dedicated server through a bank network system. An area of
the banking system is partitioned for Internet applications. Web-based banking systems by law
must include secure servers and authenticated certificates regarding transactions from the
Federal Deposit Insurance Company and the Federal Reserve Board. Customers who choose to
bank online can access their account through a web interface, which integrates with the main
computer. A customer's credentials -- user ID and password -- pass through several checkpoints
before entering the main system to perform a web-based transaction.

Types of Computers used in Banks:-

Banks use a wide range of computers to carry out regular, day-to-day operations. Computers
allow banking personnel to efficiently carry out transactions, process customer needs, forecast
future trends, prepare internal and external reports, communicate with key participants and
generate profits. Banking computers include large mainframe computers--which are often large
enough to fill entire rooms--to smaller, hand-held personal digital assistants. Some of the
computers used in banks are:-

Mainframe Computers:-

Mainframe computers that are used in banking institutions store data pertaining to client
records, domestic operations and other vital processing information. A large bank with numerous
branches may have a mainframe computer in its central headquarters and linking terminals
located in each of its branches. One of the greatest advantages of a mainframe computer for the
banking sector is its ability to perform time-sharing. Time-sharing allows multiple users to access
the same computer (and its resources) simultaneously. Mainframe computers have incredibly
fast data-processing speeds and in-built fault tolerance mechanisms, reduce labor costs, and
support a wide range of workloads and uninterrupted processing. According to "Understanding
Computers: Today and Tomorrow, Comprehensive," mainframe computers are sometimes
referred to as enterprise-class servers or high-end servers. Examples of mainframe computers
used by banks include Fujitsu-ICL VME and BS2000 machines.


Minicomputers are a class of computing machines that range in size between large mainframe
computers and smaller, personal computers. They function as Internet servers and network
servers in banking operations. According to "Telecommunications: A Beginner's Guide,"
minicomputers allow banks to shift from centralized to distributed processing. Banks use
minicomputers as file storage systems, to run email systems and perform Internet operations.
The typical minicomputer is capable of supporting more than 64 terminals. Examples of
minicomputers used in banks include the Wang Laboratories 2200 and VS series and Nova from
Data General.

Personal Computers:-

Individual users typically employ personal computers to carry out operations. Personal
computers, or microcomputers, either function as part of a larger wide area network (WAN) or
local area network (LAN), or as independent, self-contained, devices. PCs used in the banking
sector are programmed to run spreadsheet, word processing and database software, in addition
to web browsers and email clients. Microcomputers typically used in banks include tablet PCs,
notebooks and laptops, desktop computers, palmtop computers, programmable calculators and
personal digital assistants.


The "Father of Supercomputing," Seymour Cray, built the first supercomputer in 1963 called the
CDC 6600, according to Cray Inc. He founded the company Cray Research to focus on
engineering supercomputer systems. Supercomputers provide the fastest processing speed of
any computer. Used for highly complex calculations, supercomputers possess extreme
processing capabilities. For example, the Jaguar, a Cray Inc. supercomputer, operates at 1750
Teraflops (floating point operations per second) at peak performance—which means the system
can calculate 1,750,000 Gigabytes per second. Supercomputers work behind the scenes to drive
the most advanced information research forward. They are used for various highly specified
applications including weather research, quantum physics, nuclear weapon detonation
simulations and a class of problems called the "Grand Challenge problems," a set of problems
requiring a high-performance computer.

My focus on the bank is for UBL (United Bank Limited).

United Bank Limited (UBL) is a Pakistani commercial bank based in Karachi, Pakistan. It is one
of the largest bank in the private sector, the Bank operates a network of over 1,390 branches
across Pakistan and 19 branches overseas, with a customer base of over 4 million.
The bank has an asset base in excess of $15 billion, a global workforce of almost 13,000 people
and a diversified client base covering a broad spectrum of segments and industries across the
globe. UBL provides services in wholesale and retail banking through its network of branches
and presence across 12 countries in four continents including
the UAE, Bahrain, Qatar, Yemen, UK, Switzerland, China, Oman, US, Tanzania, Iran and Pakistan.

Information about UBL:-


Industry Finance

Founded 7 November 1959

Founder Agha Hassan Abedi

Headquarters Karachi, Pakistan

Key people Sir Mohammed Anwar Pervez, OBE,

HPK - Chairman
Ms. Sima Kamil - President & CEO

Products Commercial Banking, Corporate

Banking, Private Banking, Asset

Revenue ₨ 80.65 billion (US$760 million)

– 2016

Net income ₨ 27.73 billion (US$260 million)

– 2016

Total assets ₨ 1.62 trillion (US$15 billion) –


Number of 15,000+



Agha Hasan Abedi founded the bank in 1959 and under his leadership, it became the second
largest bank in Pakistan. In 1974, the Government of Pakistan nationalized the bank. This, in
turn, led to Agha Hasan Abedi founding the Bank of Credit and Commerce International. In 2002,
the Government of Pakistan sold 51 percent shares of the bank to a consortium of Abu Dhabi
Group and Bestway.
In 2002, the bank merged its operations in the UK with those belonging to National Bank of
Pakistan to form United National Bank Limited. United Bank owns 55% of the joint-venture and
National Bank of Pakistan owns the remainder.
In June 2014, the government sold-off its remaining 19.8 percent shares in the bank for $387
million ($310m of which was in foreign exchange). In November 2018, UBL announced that it
was voluntarily shutting down its New York City branch due to it being commercially nonviable to

UBL POS terminals:-

United Bank Limited in an effort to increase its outreach in the market of Pakistan has done
contract with Access Group to activate DigitalPass – POS terminals. DigitalPass is the part of
Access Group and has a presence in over 200 cities and towns of the country serving the needs
of different merchants. As per this contract, UBL will be provided provision of POS terminals by
Access Group to relatively boost the presence of banking activities. It will also help in enhancing
the bank’s outreach in terms of POS terminal based Network.
Being the largest bank in the private sector, UBL has over 1,390 branches nationwide and 18
branches outside Pakistan. It has a customer base of more than 4 million, leading the financial
and banking services in the country.

Online banking:-

Map depicting worldwide operations of United Bank (Pakistan). Highlighted countries have branches,
subsidiaries and/or representative offices of the bank. Pakistan is highlighted in dark green for reference.

Muhammad Shafiq khan The Ex-president of UBL thought it prudent to initiate UBL’s online
banking. Through this facility, customers are able to access their account from more than 1200
branches located in 150 cities across Pakistan. Transactions such as Cash Deposit, Cheque
Encashment, Stop Payment, Account Statement, Funds Transfer, Bill Payments are done online
without the need to travel to the local branch.

Awards and honors:-

In May 2016, UBL was adjudged ‘Best Bank 2016’ at the first Pakistan Banking Awards held
under the auspices of the Institute of Bankers Pakistan. The ‘Best Bank’ category recognizes a
bank that has demonstrated the most significant contribution to national development and the
most effective management of its resources including its employees, clients, franchise,
community, and financials. Also in 2016, JCR-VIS Credit Rating Company Limited (JCR-VIS) has
upgraded the entity ratings of United Bank Limited (UBL) to ‘AAA/A-1+’ (Triple A/A-One
Plus). The year also saw the UBL Facebook page exceeding 1 Million likes, making it the first
Pakistani bank to cross a million fans on Facebook. The achievement reinforces its reputation as
a Progressive and Innovative bank.

History & Background of Computer Division of United Bank

The computer division (CD) of United Bank Limited (UBL) was inaugurated in 1983 when there
was an immense need for computerization in banking in Pakistan. Previously UBL fulfilled all its
computer-related requirements by purchasing software and networks from vendors in Pakistan or
from abroad.

This was extremely expensive and would cost UBL millions of rupees. As time passed and the
needs grew UBL decided to launch its own computer division, which would hire software
programmers to develop customized banking systems.

This was a very risky venture as no bank in Pakistan had taken this bold step before but with the
dynamic management they went ahead and commenced their computer software division. The
start up was on a small scale consisting of less than 10 people. The initial projects had to be
supplemented from external help. The confidence of the CD of UBL grew and they started hiring
more professionals so that they could fulfill their personal requirements. This was of great
benefits for UBL morale and other local banks followed suit.

UBL’s reputation grew in this field, and other local banks that wanted a quick solution to their
computerized banking needs asked UBL for help. This opened a new dimension for UBL,
previously all UBL wanted was to fulfill their own requirements, but now they had the option to
also sell their software and maintain it, thus with initiating their own CD, UBL was also in the
vendors’ market. The concept was very lucrative and UBL pounced on the idea. UBL gained much
fame in the late eighties and early nineties but due to the recent entrance of international banks,
UBL’s market has fallen, the reason being that these foreign banks have state-of-the-art
technology and many local banks being impressed by this have switched to them for their
software requirements.

UBL has diversified their market by also providing certain software relating to daily transactions
and management supporting software to reputed organizations like Telegraph & Telephone (TNT)
department and Sui Southern Gas Company.

Today UBL is looking to the future optimistically, they want to provide computer banking
software which fulfills their personal as well as their customer’s requirements. For this they have
maintained a team of dedicated professionals.

Network Features:-
 Several servers
 Star topology
 Input / output devices attached
 Each server connected with one printer one at serial port and another at parallel port
 Specialix DG Board installed
 Interface cards with 8 connectors
 Connectors consists of I/O slots
 Slots are connected to terminals

UBL Online:-
UBL online offers specifically the management and tracking of every transaction in regulated
environment. Our high performance relational database programs track and maintains accurate,
real time information of your account statements and efficient management of your accounts
24/7 and can be accessed in anywhere in the world with a mouse click With UBL online you can
keep track of key metrics for fully informed decision making whilst significantly reduce paper
usage with electronic report generation and storage, reducing cost and your organization’s
environmental footprint.

List of major clients & Applications:-

In the initial stages UBL developed transaction software i.e. AIS for itself, Sui Southern Gas
Company and TNT and for different financial institutions but with the passage of time they
developed different banking AIS and DSS applications on RM COBOL and COBOL among which
the most famous in banks are UNIBANK and the latest package UNIBANK+ (launched in the end
of 1998) in which ORACLE DEVELOPER has been extensively used. UBL’s major clients are as

 Bank Of Punjab

 Askari Bank

 Bolan Bank

 Bank of Ceylon

 Soneri Bank

 Sui Southern Gas Company

 Telephone & Telegraph Department

UBL Insurers Limited ( For all your general insurance need )
UBL Insurers Limited is an associated company of UNITED BANK Ltd. It is jointly owned by United
Bank Limited (UBL) and the Bank's sponsors, the Bestway Group. UBL Insurers has been licensed
to transact general insurance business in Pakistan with effect from 5th January, 2007. It is
registered as an Insurer with the Securities and Exchange Commission of Pakistan. UBL Insurers
Limited has insurance association with Insurance Association of Pakistan (IAP).

UBL Takaful is providing a complete range of Takaful services and products to general public and
corporate in order to meet their business requirements.
The company is consistently ensuring that the products and services offered are in accordance
with the principles of the Holy Quran and Sunnah as recommended by its Shari’a Supervisory
Board. All contracts are based on Al-Wakala model managing the portfolio of Takaful operators
for a pre- agreed fee.
The investment operations are governed by the principles of Al-Mudaraba (profit and loss sharing
financing technique). The Re-takaful fund is managed by experts who invest these funds in an
interest-free Shari’a compliant equity investment schemes.

UBL introduces branch that requires no staff:-

(Web Desk) – United Bank Private Limited has introduced Pakistan’s first ever fully digital bank
that requires no staffer to facilitate the customers no different than any other branch. The first-
of-its kind branch of UBL has been built in Institute of Business Administration in Karachi. The
automated branch can be used for opening of accounts, issuance of debit cards, funds transfer,
withdrawal and deposit of cash through a video link with a teller. The services can be used even
after regular banking hours of other branches.

Innovation and technological advancement in UBL:-

Pakistan’s banking sector is passing through a phase that is both challenging and exciting. While
challenges emanate from low interest rate scenario, maturity of high yielding government
securities, rising cost of doing business, lack of broad based growth in private sector credit
appetite, rising undocumented economy with high unbanked population and changing regulatory
framework. Currently, there are robust growth opportunities in the retail segment across the
country including rural areas and continuing opportunities for digital transformation led by
technology and telephony services.
The banking industry is undergoing significant transformation and the pace of commotion in the
industry is accelerating. More and more of competition is coming not just from other banks but
from non-bank newcomers to the market, putting a significant portion of bank business and
revenues at risk. This transformation of the competitive landscape through new entrants has been
facilitated through digitization of banking services and propulsion of e-Banking and e-Commerce.
Provision of an effective payment solution, that is diverse and wide ranging, has emerged as the
basic ingredient for growth in today’s digital era. Progress in this rapidly evolving scenario lies in
cross-industry collaboration, as none of the value chain participants alone can deal with the
challenges involved in cash minimization and digitization.

UBL retains its strong focus towards digitizing its operations and building its lead in providing
innovative solutions to its clients. In 2016, UBL laid the foundation of its digital strategy which has
a three-pronged focus: continually improving client experience, investing in technology that will
enhance that experience and staying at the forefront of cybersecurity. UBL also won the
‘innovation Award’ for launching QR code based payment solution ‘UBL Master Pass QR’ through
collaboration with Master Card. UBL has also enabled card less ATM transactions that utilize
biometric technology for authentication.

At present, UBL owns the largest biometric ATMs network spanning over 530 ATMs. In the area of
net banking, they have deployed two factor authentication mechanisms for new sign-ups, SMS
alerts for online activities and swift onboarding process with increased transaction limits. In 2017,
UBL also pioneered the launch of first ‘digital branch’ at IBA campus.