Matters of Design of MIS

for Banking Systems

Academic supervizor:
Assoc. Prof. Laurențiu Frățilă

Bucharest, 2020
Structure of presentation

1. Introduction
2. Chapter I – Preview of features and
characteristics of B.T.
3. Chapter II – Financial preview and indicators
of B.T.
4. Case Study – Designing MIS for loan activity
5. Conclusions
Introduction

The paper aims to analyse the role of MIS within financial

institutions in a truly digitalised and globalised context.

The software applications on which some financial

systems function are fundamental to maintaining a stable
economy and society.

The reason for choosing this subject is the increasing

influence that digitalisation has on the functioning of
government institutions, financial institutions and also
within our daily lives.
Preview of features & characteristics of B.T.

Because of the growth of importance and use of the

internet throughout every aspect of our lives, financial
institutions such as banks offers to its clients the
opportunity to use electronic services and perform
banking operations from any place in the world without
being physically on the bank premises.

Banca Transilvania S.A. is one of the biggest

commercial banks in Romania. Their main business lines
are: Corporate; SME’s and Retail.
Preview of features & characteristics of B.T.

B.T. currently operates in 550 locations around the

country and 2 in Italy, having more than 7,300
employees and gathering a portfolio of more than 2,6
million clients, and has a market share of 10,6% in total
assets.

The bank offers a wide range of loans for both

natural and juridical entities and maintains a balanced
position within the main financial institutions of
Romania.

The first quarter of 2016 provided around 3,800 new

loans for its clients and a portfolio of 2,6 million card
users, which means 19% market share of retail banking.
 Financial preview and indicators of B.T.

As of 31st of March 2016 (1st quarter), B.T.’s activity and

performance seem to be increasing. Some of the recent
achievements of the bank include:

• The rise of the creditation activity through its main

credit lines: retail, corporate and SME’s. (aprox. 35,000
new credits issued)

• The operating revenue has increased with 10,7% over the

1st quarter of 2015 to 599,1 million RON

• Net Profit has also increased in the same period with

50,8% from the 1st quarter of 2015.
Financial preview and indicators of B.T.

The overall direction in which Banca Transilvania S.A. is

a positive trend which is reflected in the strong financial
indicators.

This type of banking allows B.T. to be among the most

performing banks in Romania and maybe even become a
multinational bank in the future.
Structured methods versus object oriented methods
Structured methods versus object oriented methods
Structured methods versus object oriented methods
Structured Programming
Structured Programming is designed which
focuses on process/ logical structure and
then data required for that process.
Structured programming follows top-down
approach.
Structured Programming is also known
as Modular Programming and a subset
of procedural programming language.
In Structured Programming, Programs are
divided into small self contained functions.
Structured Programming is less secure as
there is no way of data hiding.
Structured Programming can
solve moderately complex programs.
Structured Programming
provides less reusability, more function
dependency.
Less abstraction and less flexibility.
 Object Oriented Programming
Object Oriented Programming is designed
which focuses on data.
Object oriented programming follows bottom-
up approach.
Object Oriented Programming
supports inheritance, encapsulation,
abstraction, polymorphism, etc.
In Object Oriented Programming, Programs
are divided into small entities called objects.
Object Oriented Programming is more secure
as having data hiding feature.
Object Oriented Programming can solve
any complexprograms.
Object Oriented Programming provides more
reusability, less function dependency.
More abstraction and more flexibility.
Case Study – Designing MIS for loan activity

Views
Levels
Communication Data Process
Conceptual CCM CDM CPM
     

Logical or LCM LDM LPM

Organisational      

Physical or PCM PDM PPM

Operational      
CCM – Conceptual Communication Model
 CDM – Conceptual Data Model
Base of attributes
Crt. No. Name of attribute Code of attribute Entity Crt. No. Name of attribute Code of attribute Entity
Customers personal identification C_CNP Customers 31 Sellers address S_Address Sellers
number
1 32 Sellers ID issue date S_ID_date_issue  
2 Customers ID series C_ID_series   Sellers expiration date S_ID_date_expiration  
33
3 Customers ID number C_ID_no   Sellers phone S_Phone  
34
4 Customers name C_Name   Report of evaluation number RE_no Rep_Eval
35
5 Customers surname C_Surname  
36 Report of evaluation date RE_date  
6 Customers adress C_Address  
37 Report of evaluation amount RE_amount  
7 Customers ID issue date C_ID_date_issue  
38 Mortgages number M_no Mortgages
8 Customers ID expiration date C_ID_date_expiration  
39 Mortgages date M_date  
9 Customers phone C_Phone  
40 Mortgages amount M_amount  
10 Bank code Bk_code Bank
Bank name Bk_name  
Evaluators personal identification E_CNP Evaluators
11 number
12 Bank fiscal code Bk_fiscal_code   41
Bank trade registry number Bk_TR_code   42 Evaluators ID series E_ID_series  
13
Bank address Bk_Adress   43 Evaluators ID number E_ID_no  
14
15 Bank phone Bk_phone   44 Evaluators name E_Name  
Bank_Employees personal BE_CNP Bank_Employees 45 Evaluators surname E_Surname  
identification number Evaluators number of E_authorization_no  
16
Bank_Employees code BE_code   authorization
17 46
18 Bank_Employees name BE_name   47 Evaluators adress E_Address  
19 Bank_Employees surname BE_surname   Evaluators ID issue date E_ID_date_issue  
48
20 Bank_Employees ID series BE_ID_series   Evaluators ID expiration date E_ID_date_expiration  
49
21 Bank_Employees ID number BE_ID_no   Evaluators phone E_Phone  
50
22 Bank_Employees address BE_Address   Real estate property cadaser code RE_code_cadaster RE_Properties
51
23 Bank_Employees ID issue date BE_ID_date_issue  
52 Real estate property address RE_address  
Bank_Employees ID expiration date BE_ID_date_expiratio  
n 53 Credit Contracts number CC_no Cr_Contracts
24
Bank_Employees phone BE_Phone   54 Credit Contracts date CC_date  
25
Sellers personal identification S_CNP Sellers 55 Credit Contracts amount CC_amount  
number 56 Credit Contracts start date CC_date_start  
26
SellersID seires S_ID_series   57 Credit Contracts end date CC_date_end  
27
28 Sellers ID number S_ID_no   58 Credit Type code CT_code Cr_Type
29 Sellers name S_Name   59 Credit Type name CT_name  
30 Sellers surname S_Surname   60 Credit Type period CT_period  
 CDM – Conceptual Data Model
Base of attributes
Crt. No. Name of attribute Code of attribute Entity Crt. No. Name of attribute Code of attribute Entity
61 Credit Type interest rate CT_IR Cr_Type 91 GF_Employees name GF_name GF_Employees
62 Payment Docs type PD_type Pay_Docs GF_Employees surname GF_surname  
92
63 Payment Docs number PD_no   GF_Employees ID series GF_ID_series  
Payment Docs date PD_date   93
64 GF_Employees ID number GF_ID_no  
Payment Docs credit account PD_credit_account   94
65 GF_Employees address GF_Address  
66 Payment Docs debt account PD_debt_account   95
Payment Docs amount PD_ PD_amount   GF_Employees ID issue date GF_ID_date_issue  
67 96
68 Payment Docs explanation PD_expl   GF_Employees ID expiration date GF_ID_date_expiration  
97
69 Notaries fiscal code N_fiscal_code Notaries GF_Employees phone GF_Phone  
98
70 Notaries trade registry code N_TR_code   GF_Approval number GFA_no GF_Approval
Notaries name N_name   99
71 GF_Approval date GFA_date  
72 Notaries anme N_address   100
Notaries addess N_phone   GF_Approval amount GFA_amount  
73 101
Notary_Emloyees personal NE_CNP Notary_Emlpoyees
identification number
74
75 Notary_Emloyees name NE_name  
76 Notary_Emloyees surname NE_surname  
77 Notary_Emloyees ID series NE_ID_series  
78 Notary_Emloyees ID numbe NE_ID_no  
79 Notary_Emloyees Address NE_Address  
80 Notary_Emloyees ID issue date NE_ID_date_issue  
Notary_Emloyees ID expiration date NE_ID_date_expiration  
81
82 Notary_Emloyees phone NE_Phone  
83 Notifications number Ntf_no Notifications
84 Notifications date Ntf_date  
85 Notifications amount NTF_amount  
86 Guarantee Fund fiscal code GF_fiscal_code Guarantee Fund
87 Guarantee Fund name GF_name  
88 Guarantee Fund address GF_address  
89 Guarantee Fund phone GF_phone  
GF_Employees personal identification GF_CNP GF_Employees
number
90
CDM – Conceptual Data Model
CDM – Conceptual Data Model
CPM – Conceptual Processing Model
CPM – Conceptual Processing Model
 LCM – Logical Communication Model

It will set up the following charcteristics :

Logical architecture
Level 2 Client-Server architecture for workstations from Loans Department
Level 1 Client-Server architecture for workstations from all banking
departments, with exception of Loans Department

Relational database management system (RDBMS) : Access 2013

Querry language – SQL Server 2016

LDM – Logical Data Model
LPM – Logical Processing Model

Code of Name of operation Frequency Type

operation
Op1 Sign preliminary contract R SA
Op2 Request + submit the documents R M
Op3 Evaluation of real estate R SA
Op4 Approve loan contract R SA
Op5 Sign mortgage + loan contract R M
Op6 Withdraw the amount R SA
Op7 Payment the rates M SA
PCM – Physical Communication Model
PDM – Physical Data Model
PDM – Physical Data Model
PPM – Physical Processing Model – Main Menu
PPM – Physical Processing Model - Relationships
PPM – Physical Processing Model - Tables
PPM – Physical Processing Model - Forms
PPM – Physical Processing Model - Reports
Conclusions
When building a financial-banking information system,
the banks can either develop their own information
products using specific development methods or they
can choose to buy already existing software.

Developing one’s own information system can require

more financial and human resources but it is more
profitable and efficient on the long term because of the
special “tailoring” of the program to specific needs.

The acquisition of already existing software can

drastically reduce costs but that certain software would
have to be either compatible with the bank’s needs or at
least flexible enough.
Conclusions
Structured Programming
Structured Programming is designed which
focuses on process/ logical structure and
then data required for that process.
Structured programming follows top-down
approach.
Structured Programming is also known
as Modular Programming and a subset
of procedural programming language.
In Structured Programming, Programs are
divided into small self contained functions.
Structured Programming is less secure as
there is no way of data hiding.
Structured Programming can
solve moderately complex programs.
Structured Programming
provides less reusability, more function
dependency.
Less abstraction and less flexibility.
 Object Oriented Programming
Object Oriented Programming is designed
which focuses on data.
Object oriented programming follows bottom-
up approach.
Object Oriented Programming
supports inheritance, encapsulation,
abstraction, polymorphism, etc.
In Object Oriented Programming, Programs
are divided into small entities called objects.
Object Oriented Programming is more secure
as having data hiding feature.
Object Oriented Programming can solve
any complexprograms.
Object Oriented Programming provides more
reusability, less function dependency.
More abstraction and more flexibility.
Thank you for your
attention!