By

Nyamweya Nathan
mcmeer19@gmail.com, +250786779445

 A conceptual framework of ICT in Financial
Services
 An overview of Financial Services :
 A preliminary analysis of ICT use in Financial
Services
 Benchmarking challenges and framework
conditions


Financial Management is a discipline concerned
with the generation and allocation funds to the
most efficient user within the firm through a
market pricing system (the required rate of
return).
 Financial Management means planning,
organizing, directing and controlling the
financial activities such as procurement and
utilization of funds of the enterprise.
 It means applying general management
principles to financial resources of the
enterprise.
 Investment decisions includes investment in fixed assets
(called as capital budgeting). Investment in current assets
are also a part of investment decisions called as working
capital decisions.
 Financial decisions - They relate to the raising of finance
from various resources which will depend upon decision
on type of source, period of financing, cost of financing
and the returns thereby.
 Dividend decision - The finance manager has to take
decision with regards to the net profit distribution. Net
profits are generally divided into two:
◦ Dividend for shareholders- Dividend and the rate of it has to be
decided.
◦ Retained profits- Amount of retained profits has to be finalized
which will depend upon expansion and diversification plans of the
enterprise.


 Investment Banking,
 Brokerage Operations,
 Insurance, and
 Commercial Banking.
 Back Office Automation, when the key motivation
is to reduce transaction costs and administrative
overhead
 Front Office Automation, when personnel dealing
with external parties (customers or other
financial institutions) were able to access
centrally-held information
 Bringing Customers On-line, when customer gain
direct access to their accounts in the core
processing and accounting function.
 An Integrated System, where various elements of
ICT are brought together to provide a complete
picture of customers' relationships and bank's
position.
The three core requirements for ICT in financial
services are:
 Transaction processing
 Customer interaction
◦ žDelivery channels
◦ žProduct development
◦ žAdvice
 Risk management

 Primary update for Customers transactions
 Secondary updates for transactions like salary
(tape or disc)
 Batch processing (interest posting)
 Online Processing : Account & Customer
creation, Financial transactions & Enquiries
Maintenance