Executive sum-up:
Citibank is renowned name in the banking industry which supplying fiscal services with great excellence. The Global Consumer Bank and the Global Corporate Investment Bank offer a complete scope or fiscal merchandises to ease its clients to the best. To last in a planetary economic environment Citibank has to maintain its information up to day of the month, to do good informed and timely determinations. This study is based on the research done on information system of Citibank. It carefully analyzes the mission statement, environmental factors, determination devising, and information systems of the organisation. This study besides reveals some of the ethical issues to be considered while utilizing IS/IT.
Introduction:
Citibank is a major American corporation. As a top company in the Banking and Financial Services industry Citigroup specialize in extremely diversified fiscal services.
The general concern activity and chief merchandises or commercial endeavor of Citigroup are categorized as being portion of the Banking and Financial Services Industry.
Its slogan is to set the client ‘s involvement at first precedence and drama of import function in the planetary economic system. Citibank provides advanced, high-quality merchandises and services to its clients.
MissionStatement:
Citigroup Inc. ( “Citi” ) recognizes that foreclosures affect the person, the household and the community. We besides understand that early intercession and a full apprehension of the available options are of import for extenuating or minimising the impact of foreclosures.
Citi ‘s Office of Homeownership Preservation ( OHP ) is dedicated to happening solutions that preserve homeownership and aid extenuate the challenges faced by borrowers. We work straight with borrowers at hazard of losing their places. We besides work with any and all stakeholders who advocate on behalf of borrowers, including non-profit organisations, elected functionaries, authorities bureaus, regulators and others. Our strong partnerships with these stakeholders help us to develop and implement homeownership saving solutions and enable us to amplify our outreach and aid to borrowers. For illustration, OHP ‘s hotline for lodging counsellors greatly enhances their ability to work with us on behalf of our borrowers. And our borrower and counsellor outreach plans, which we conduct in coaction with spouses in legion locations around the U.S. , conveying aid straight to at-risk communities.
General Aims:
The ultimate end of Citibank is to be recognized as the most well-thought-of planetary fiscal services establishment. It was the first bank to present recognition cards in assorted states and introduced the construct of 24 ten 7 call centre. Citibank intends to plan advanced fiscal merchandises to ease its clients to do better investings and gain more net income.
It intends to play a critical function in economic growing of the state. It delivers export bureau and many-sided funding services and has played influential function in enlargement of state ‘s market for derived functions and other exchequer merchandises.
Specific aims:
Citibank intends to fulfill its clients more than its rivals. It intends to plan advanced fiscal merchandises to ease its clients to do better investings and gain more net income.
Powerful distribution webs, electronic channels, myriad of fiscal merchandises which cater to client mix, wide merchandise capablenesss – this is what is needed to win in the volatile markets of today. This is what allows Citibank to offer institutes worldwide the right fiscal solutions – every clip, all the clip.
Corporate and investing banking clients include corporations at every phase of development. Providing to the altering demands of corporations and leveraging on long term relationships, Citibank execute minutess of about any size, of every degree of complexness, and back them with a broad distribution web.
Along with that Citibank plans to acquire full advantage of micro and macro environmental factors i.e. to acquire full advantage of chances and program good to avoid harmful impacts of dainties.
Citibank heads the fiscal sector reform procedure and has been at the head to take authorities to the international capital markets.
Environmental factors:
Theenvironment about is ever altering, the first and the foremost challenge to banking industry is to get by with alteration in economic conditions. There are several micro or industrial environmental factors and macro or external environmental factors that pose challenges to banking industry.
Micro environment:
The internal challenges include proficient expertness, infra construction development, development of liability merchandises, anti money laundering, operational facets, human resource development.
Banks should set their chief focal point onacquisition of proficient expertisein altering paradigm of banking sector ordinances. Human resources must be able to larn and accommodate to alterations in the environment and do good informed determinations. Fiscal establishments around the universe are utilizing a technique called “stress testing” . This technique helps to gauge the alterations in portfolio, if the establishment is exposed to different hazard factors.
Private sector engagement is increasing enormously ininfra construction development, around the Earth. In 1990s, private sector investing rose bit by bit in substructure undertakings and the most successful undertakings among these were executed in 136 low and in-between income states. Banks have to face with certain challenges of larning from experience of other emerging market economic systems and presenting advanced manners of substructure funding and device methodological analysiss of hazard direction.
Increased attending has been paid on the plus side of banking over recent few old ages. But lesser accent has been put on developinginnovative liability merchandises. This has lead to stagnant fiscal nest eggs in the economic system. The demand of clip is to device profitable nest eggs merchandises in order to take attention of little rescuers ‘ involvement.
Misuse of banking industry has resulted from increased integrating in planetary fiscal industry. This has resulted in utilizing bank money for terrorist funding, drug trafficking andmoney laundering. Except for a few well-developed states, other states lack a comprehensive legislative system to cover with such jobs.
Banks put a batch of accent on exchequer and corporate concern and frequently neglect to recognize the importance ofoperational aspectsof the concern which should non be underestimated. Banks should supply the operational staff with inducements in order to promote them.
Human Resource Developmentis a new term being used in concern these yearss. Human resources are every bit of import as fiscal resources, and Bankss should develop their human resources in such a manner that they prove to be productive in all clip altering environment and face the concern challenges efficaciously.
Macro environment:
- Over the past few yearsinterest rateshave reached historically low degrees to promote a favourable environment for economic growing. This has enabled smaller concern entities to acquire bank funding, which helped these concerns to boom well.However, the involvement rate construction is altering bit by bit over the past few old ages.
- Consumer-Durable Demandis besides an of import facet to be considered. Inflationary force per unit areas have been created on the economic system because of vigorous growing of car and mortgage funding. Monetary values of assets acquired through bank funding have been increased significantly in recent times which are the chief cause of force per unit area.
- Given the volatile nature of the equity markets, Bankss ‘ investing in equity stocksneeds a cautious attack.
- Another country where still a batch of advancement should be made is theE-banking. Although little and average Bankss are now offering online services to their clients, the big Bankss, with more expanded subdivision web and figure of clients, are required to travel more efficiently so as to optimally use the E-banking web. This will non merely lower the dealing costs but will besides assist in bettering the client services. The ATM incursion ratio is still rather low and the attempts are needed to non merely further expand the ATM web more sharply but besides to better upon the security criterions.
The inquiry at this point of clip is that whether Bankss would be able to spread out their concerns on the base of low fiscal charges which was the major factor behind increased recognition demands. Along with that refund capacity of borrowers is questionable who borrowed money at drifting rates.
The chance of default on these loans has a direct relation with the value and the nature of the implicit in collateral as most of the consumer loaning is secured. This said, plus monetary values play a important function in finding the size of the losingss incurred by Bankss in instance of default.
SWOT Analysis
Strengths:
- Citibank is a Multinational organisation which provides it a competitory border on other local Bankss.
- Well established trade name name of Citibank makes it more dependable for clients.
- Citibank stand on 7th rate harmonizing to universe broad bank ranking
- Bing a transnational organisation Citibank is globally accessible to its clients.
- Citibank besides provide SMS banking installation which makes it easier for its clients to have qui vives about any sort of dealing made from their history. They can besides acquire any sort of information about their history.
- Bing a really strong Financial Institute, Citibank is a good option to put money in.
- Highly professional Human Resources of Citibank guarantee complete client satisfaction. Highly trained and skilled Human Resources make it easier for its client to decide any sort of issues or jobs related to their history.
- Extended banking ( 9:00am – 8:00pm ) is an excess attempt to supply client with better service and convenience.
- Strong relationship with clients ensures long term committedness from clients.
Failings:
- Inadequate hiring puts a batch of work force per unit area on the employees which may take to lower employee satisfaction.
- Discrimination between contractual and lasting staff ( differences on wages, work load, and fringe benefits ) may besides do employees to exchange their occupations with better paying organisations.
Opportunities:
- International local bank ( Cheque of any subdivision of the bank can be presented to any subdivision of the same bank, located anyplace in the universe for encashment )
- Developing advanced liability merchandises can pull more clients
Menaces:
- Instable economic conditions pose a batch of hazard to investings of bank
- Variable involvement rates
Types of determinations
There are some of the critical determinations that top directors face every twenty-four hours. To capture maximal value, executives non merely must do the right determinations, but besides must negociate skilfully. Since most concern determinations involve other parties, it is indispensable for directors to understand their single function as it relates to other determination shapers, every bit good as how to utilize this cognition to make the strongest possible negotiating place.
Hence, maintaining in head the importance of determination doing for directors, information systems are besides designed in a manner to assist them out to command operations and execute their managerial duties more efficaciously.
Types of determinations made at assorted degree of organisation depend on the kind of job faced. There are three wide classs of determinations:
1. Structured determinations:
Structured determinations are made where job is repeating and insistent, the common factors can be identified in order to place a peculiar class of action. Due to which defined set of process can be devised for their solution. Such determinations are made for everyday jobs like cutting on the written checks, corrections needed in the personal informations of clients etc.
Procedures for obtaining the best solution for such ordinary jobs are standardized. There exist certain regulations and ordinances for finding the solutions of jobs, by the organisation. Aims to be achieved are clearly defined.
2. Unstructured determinations:
Unstructured determinations are made where jobs possess multiple solutions, solution waies, fewer parametric quantities which are less manipulate able, and incorporate uncertainness about which constructs, regulations, and rules are necessary for the solution or how they are organized and which solution is best.
When jobs are non everyday, critical and fresh in nature, they require single judgement, rating and insight changing on case-to-case footing. There is no good understood or agreed upon process for managing these jobs. For such state of affairss, predefined policy can non be devised. Personal bankers are non allowed to do such determinations ; they must describe such issues to line director. Line directors besides have limited authorization to do such determinations. If the job can be solved within their restrictions they make single judgements to manage the job otherwise they report to their section caput or subdivision director.
Once the job has been figured out, a policy may be devised to manage the job in future. This can do the job expression like every bit structured one giving respect to the function of single judgement.
3. Semi-structured Decisions
The term is used to mention to the gray country of determinations which lie between the two extremes. Some ( but non all ) structured stages and frequently solved utilizing standardised solution processs and human judgement.
Such determinations are normally taken based on meeting of all departmental caputs. The fact is that whether determinations are taken by individual individual or all in a formal meeting is non the exclusive determiner of a determination being structured or unstructured. Rather it merely shows the complexness of the job.
Information demands
Information demands for different types of determinations vary a batch. All of the employee, client and history information are recorded in the Management Information System of the organisation.
Citibank ensures that any of their clients or employees does non belong to any terrorist activity ; they are non defaulters or are wanted felons of any state. Information about wanted felons, terrorists and defaulters are easy available on the cyberspace, and employees of Citibank make certain before doing person a portion of Citi Family.
Other information regarded to determination devising is normally provided to several sections in written signifier, by the organisation.
Information Systems
Citibank utilizes Management information system, Transaction treating system and work group information systems which are all computing machine based to heighten the on the job efficiency of the organisation.
- Management information systemhelps to bring forth studies for directors. These studies are normally generated on preset agenda and look in pre arranged format. Budget prediction and analysis studies, fiscal studies, salary analysis studies, gross revenues reporting/forecasting etc. can be obtained utilizing MIS. Such information system is normally used by the state caputs, regional caputs and other higher direction of the organisation.
- Transaction processing systemis used by the hard currency and operations section for entering the bank sedimentations and with drawls.
- Workgroup information systemenables employees of one section to enter all the information in one information system which is seeable to all the people working in the same section worldwide. Such information system has been really helpful in hiking the productiveness of different sections.
Recommended information systems
Although Citibank uses a really good defined and province of art information system, farther betterments can be made to heighten its affectivity and efficiency.
1.ADecision support systemwhich provides its users with determination oriented information whenever a determination doing state of affairs arises. Decision support systems are besides called executive information systems. Such an information system can ease executives for doing better determinations. A determination support system can assist in:
- Designation of jobs or determination devising chances ( similar to exception coverage )
- Designation of possible solutions or determinations
- Access to information needed to work out a job or do a determination
- Analysis of possible determinations or of variables that will consequence the determination ( what-if analysis )
2. In order to avail the chance of being international local bank Citibank needs anExpert system. Such an information system gaining controls and reproduces the cognition and expertness of an expert job convergent thinker or determination shaper and than simulates the thought or actions of that expert. An expert system uses Artificial intelligence engineering.
- A major recognition card agent can an adept system to speed up recognition testing that requires informations from multiple sites and databases.
- Client may acquire hard currency for his check anyplace around the universe, a by the aid of an expert system.
Apart from holding a really good information system, the employees have to do usage of telephone lines to pass on with their bomber ordinates and directors located far away. There is a demand ofoffice mechanization systemwhich supports broad scope of concern activities that provide for improved work flow and communications between workers irrespective of whether or non those workers are located in the same office.
Ethical issues related to IS/IT
Computers maintain on going more and more powerful and deriving more and more liberty. They are being equipped with fail-safe and self-healing engineerings. Internet-based communicating is leting concern entities to organize the activities of their globally-spread units with greater truth. The cognition gained by one unit becomes available to all others really rapidly. All this has made these concern entities really powerful, even more powerful than many nation-states. But there exist certain ethical issues which must be addressed:
- Recognition of informations beginnings is really necessary in banking industry any bogus information may take to the loss of 1000000s of dollars.
- Privacy rules provided by organisation must be followed. Privacy of information must be ensured under any fortunes.
- Entree to informations, ownership and control of informations must be provided merely to the relevant section.
- Credit card fraud can happen if a stealer somehow breaks into an e-Commerce waiter and gets clasp of recognition Numberss and related info
- Industrial espionage is another job that may originate from usage of IT. Spies of one concern proctor the web traffic of their rivals and by and large look for information on future merchandises, selling schemes, and fiscal records which may turn out fatal for that concern.
Mention:
- hypertext transfer protocol: //www.company-statements-slogans.info/list-of-companies-c/citigroup.htm
- hypertext transfer protocol: //www.citibank.com/
- Informal Interviews with Citibank employees during internship
- Formal interview with Branch Manager
