The purpose of this undertaking is to propose and document how Treasury Department of Bank South Pacific ( BSP ) Colonial can heighten communicating and coaction with its major stakeholders by following the modern applications of digital economic system.
The undermentioned lists the aims of this undertaking, which if all accomplished, will be able to run into the purpose of the undertaking.
- An apprehension of the concern environment within which the Treasury Department of Bank South Pacific ( BSP ) Colonial operate ;
- A critical rating of the current methods of easing communicating and coaction with stakeholders ;
- An apprehension of the current resources available to heighten communicating and coaction as portion of a digital economic system ;
- A solution to heighten communicating and coaction ; and
- A post-hoc rating of the suggested solution.
What is Information System
Information system is the procedure whereby informations is retrieved from an external beginning, gets into the system and processed and gives out information to the stakeholders of an organisation, which is utile for determination devising ( Graduate Schools Home, 2010 ) [ 1 ] .
Components of IS
There are 5 constituents of an information system ( IT Lecture Notes, 2006 ) [ 3 ] :
Peoples who are involved in the information system, any portion, whether they are involved in acquiring the information from external beginning, processing section, or giving out information to all relevant stakeholders. Such functions of people may affect informations entry operator, coder or director.
The package that an organisation uses to let for coaction and communicating and assistance to reassign informations to the processing section and from this section to the stakeholders in the signifier of processed informations, i.e. , information.
For illustration, in the instance of a banking industry, the transportation of big amount of money from one bank to another is done utilizing Real-time Gross Settlement ( RTGS ) package via electronically, without any physical agencies ( Investopedia, 2010 ) [ 4 ] .
The computing machine hardware such as computing machine proctor, keyboard, mouse, web overseas telegrams and the similar that assist in informations communicating and therefore let room for coaction and communicating.
Procedures are manuals that ushers, explains or helps people how to execute certain maps such as how to treat informations.
This is informations retrieved from external beginning that is yet to be processed and doing it into utile information that can be used to assist do determination.
Bank of South Pacific ( BSP ) Colonial
The chief function of BSP Colonial is to enable concerns or persons who need money to run into and make concern with people who have money.
It operates in four concern watercourses, and to loosely sort it, these are:
- Life Insurance
- Health Insurance
International & A ; Treasury Department
International & A ; Treasury Department ‘s map is to ease international transportations and local transportations. Foreign currency notes, traveller ‘s checks, etc. We will be concentrating on Money Market country affecting payments for colony utilizing Fiji ‘s latest engineering that was introduced and went unrecorded on 24th October 2008, called FIJICLEAR.
The payment system plays a critical function in a state ‘s economic development because the payment system is the anchor which performs pecuniary and fiscal system. It is through the payments system that money goes about and allows money to be transferred between rescuers and loaners, purchasers and Sellerss or from one point to another. By reforming and developing the payments system, it is possible to cut down the overall dealing costs and better the efficiency of fiscal minutess in an economic system. Efficiency such as convenience and security has favorable flow – on effects to the whole economic system.
The cardinal bank necessarily plays a cardinal function in this payment procedure. This stems from their primary maps of supplying liquidness to commercial Bankss and uncluttering payments between Bankss. This glade service in Fiji has evolved over the old ages. Before the system was introduced, the glade was done in cardinal bank ( known as RBF Clearing ) where all commercial Bankss would come in one time a twenty-four hours to unclutter their payments under their supervising. Then commercial Bankss themselves took over the full procedure with approved regulations and guidelines. Therefore, the Bankss have shifted their focal point on Real Time Payment System utilizing a system known as RTGS ( Real Time Gross Settlement ) .
The complexnesss in the fiscal intermediation are increasing with the development of modern merchandises to better suit the germinating demands of clients. Inevitably, it is the cardinal bank that takes a lead function in the modernisation of the payments system because of its importance to the economic system and the full fiscal system. At the same clip, such a system facilitates our work as keeper of fiscal stableness.
Payment manner is broad runing. Cash is the common manner of payment. However, the incommodiousness of transporting hard currency and increasing security menace has encouraged the move towards other payment media. But paper based instruments like checks and bill of exchanges are non so convenient. In modern times, cards and electronic payments are regarded as the most convenient and safer instruments, although they excessively are capable to certain hazards.
The manual payment system that Colonial and Reserve Bank used did work adequately, but it besides had some defects. The major 1 was that it takes clip for clearance. All glade was done at 3pm on Mondays to Thursdays and 3.30pm on Fridays. Frankincense clients had to wait till 3.45pm to entree their money in the bank after clearance from Reserve Bank of Fiji. The cost of paper based instruments like checks is comparatively high in Fiji adding to the cost of making concern. Some times signers are non available hence hold in payments.
Overview of FIJICLEAR
FIJICLEAR is the name of Fiji ‘s Real Time Gross Settlement System ( RTGS ) which allows payments to be made electronically to/from within the state from one commercial bank to another. Transportations are denominated in Local Currency merely ( FJD ) .
FIJICLEAR enables the processing of payments to be done as and when minutess incur – hence the term “ Real Time ” . It is an electronic payment within a state and acquiring immediate colony of those payments.
In simple footings it means that alternatively of waiting for several yearss for financess to be available for usage, the having party or donee will hold financess in their histories within one concern twenty-four hours or in some instances about outright. Similarly, the party doing the payment is assured of safe and immediate bringing of those financess.
The cardinal elements of FIJICLEAR are velocity, certainty, dependability, safety and security, convenience and cost.
The system for the transportation and colony of Fiji dollar denominated financess merely. It enables payments instructions to be processed and settled separately and continuously throughout the on the job twenty-four hours. All settled minutess are considered as concluding and irrevokable. Therefore, the receiving system will be able to utilize the financess instantly without being exposed to the hazard of the financess non being settled. This is in contrast to the old manual system which operated on a deferred net colony system, where payments are processed throughout the twenty-four hours but the existent entries are merely affected at the terminal of the twenty-four hours.
The Reserve Bank of Fiji ( RBF ) is the Operator and Supervisor of FIJICLEAR. In add-on to monitoring this payment system, its function is to guarantee that the banking system has sufficient financess ( lower limit of FJD 20,000 ) to run on and supply clear policies and guidelines to users of this system.
Users of FIJICLEAR.
The Reserve Bank of Fiji is the regulator of FIJICLEAR system with five participants who are ;
- Westpac Banking Corporation
- Bank of South Pacific Colonial
- Bank of South Pacific
- Bank of Baroda
Each of the five participants has their ain clients for whom they perform the minutess utilizing FIJICLEAR systems with fee inclusive.
Benefits of FIJICLEAR
There are a figure of benefits of utilizing FIJICLEAR.
To the Payee i.e. the individual having money, the benefits include:
- Fundss are credited into the history straight off. So there is no waiting of 3 – 7 yearss for financess to be cleared when utilizing a check ;
- There is clip nest eggs as one does non hold to physically see a bank to lodge check ;
- There is no uncertainness of any dishonoured checks with the associated charges and loss of income ;
- Immediate crediting of history agencies that any overdraft bound is reduced and therefore lower involvement charges ;
- Immediate crediting of financess will assist in hard currency flow ; and
- Reduced overhead or staff cost as there is less paper work.
- There is less hazard of transporting checks ;
- There is nest eggs in clip and charges ; and
- There is better concern relationship with creditors.
There are besides benefits to the Payer i.e. those doing the payments:
Reserve Bank of Fiji has established a secondary site which is online which means if necessary they can run the system from this alternate site. The site besides acts as informations backup. In add-on, the communicating lines are dedicated to the system and are unafraid. There is a dedicated squad in the Reserve Bank monitoring and supervising the minutess during the twenty-four hours. This squad provides equal liquidness during the twenty-four hours to let the system to work swimmingly. IT backup support and service understanding is in topographic point.
- Graduate Schools Home, 2010, in ‘What are Information Systems ‘ , in International Graduate: The Website for Graduate Opportunities Worldwide, accessed 16th May 2010, from
- Information Management System, 2009, ISC Technologies, viewed 16 May 2010,
- IT Lecture Notes, 2006, in ‘Components of Information Systems ‘ , in McKinnon Secondary College, accessed 16th May 2010, from
- Investopedia, 2006, in ‘Real Time Gross Settlement – RTGS ‘ , in Investopedia, accessed 16th May 2010, from & lt ; hypertext transfer protocol: //www.investopedia.com/terms/r/rtgs.asp & gt ;