TRANSACTION PROCESSING SYSTEM (TPS) IN UBG

As a leading financial institution in the South African Region, UBG has to implement reliable information system. In a service oriented organization like UBG, customers' satisfaction and security are among the most important factor should be considered in selecting a Transaction Processing System (TPS).

The Branch Delivery System (BDS) was introduced in 1999 to replace the older TPS known as the PB Olifin. The earlier version of BDS supports all type of operational transactions like deposits, withdrawals and transfers of funds. However, the BDS functionalities have been expanded progressively with the arrival of new banking products.

BDS runs on the Windows operating system. On top of it is the NCR proprietary security and functional layer call Extended Security System (ESS). The ESS application provides controls on the usage of authorized software on the system and it also manages the distribution and update of program to branches.

The workstation consists of a computer loaded with Branch View Client Software (BV), which is the subsystem of BDS. Each computer is attached with a Pin Pad Magnetic Stripe Reader and a Document Printer for transaction slips, vouchers and passbooks. In addition, there is also a Laser Printer connected to the Local Area Network (LAN). Another important hardware in a BDS LAN is a resilient server (Branch View Server). Configured with RAID 1 technology and equipped with additional hard disk and LAN card.

BDS serves as the operation system at UBG Branches and some head office's departments. Transaction such as deposit, withdrawals, transfers, loan or credit card repayments and service charges can be done at any BDS workstation.

Every teller and approving supervisors are assigned with a unique User/Teller ID number. This ID has a unique password that can't be used by other staff including superiors. It allows the teller to perform transactions on customers' accounts.

Beside the User/Teller ID number, each approving supervisor is also assigned with Supervisor Override Cards. The card holds the power to approve exceptional accounts and transactions. For example, any transaction above $50,000.00 will require Supervisor Override. There are many other reasons that may require Supervisor Override. A register is also maintained by Operations Manager to record staff acknowledgements on User/Teller ID and Supervisor Override Cards issued.

It can be hundreds of various transactions by a teller during each business day. Hence, day end report will be printed for the teller balancing purposes. The total deposits and withdrawals transactions reflected in this report should agree to the physical cheques and cash holding by the teller. A supervisor will also countercheck each copy of transaction slips to ensure the inputs were correct and accurate.

Part of the BDS services is generating a series of end day summary reports that show total transaction of the day according to its type. An exceptional report of transactions with huge amounts will also be printed for the Operations Manager's attention. The day correction report shows all the error correction transactions performed by all tellers, which should be checked and signed by all responsible supervisors for early detection of frauds.

Automated Teller Machines (ATM), Cash Deposit Machines (CDM) and Cheques Deposit Machines are other TPS that can be found at UBG. These machines offer banking services to customers 24 hours. ATM allows customers to withdraw cash, CDM allow customers to bank in cash and Cheques Deposit Machines accept cheques deposits at any time. Even though these machines are not operated by human, the maintenance and monitoring are handled by the bank's personnel. All transactions performed are transmitted directly into the bank's database and will appear in a series of reports and journal roll for verification and balancing by officer in charge.

UBG BEFORE TRANSACTION PROCESSING SYSTEM (TPS)

The old conventional banking operation in UBG mainly involves deposits and withdrawals transactions. All transactions were recorded on daily transaction registers, meanwhile customers' account information were recorded in ledger cards.

Ledger cards were raised for every customer to record all the movements in their account. Savings passbooks were also issued to customers for their references. Both the Ledger Card and Savings Passbook of a customer should agree whenever a transaction took place.

All cash and cheques transactions were also recorded in registers. These registers should agree to the cash and cheques holdings at day end. Computations of interest and account balances are done using the calculators (casting machines).

Any movements in the registers and ledger cards must be must be approved or signed by a supervisor regardless of amount. Registers and Ledger Cards must also be filed accordingly and kept inside a strong room of fireproof cabinets at day end, as they were permanent records.

Example: The Process of Modern Day Banking Transaction

UNDERSTANDING TRANSACTION PROCESSING SYSTEM (TPS)

Transaction processing was one of the first business processes to be computerized. Without Information systems, recording and processing business transactions would consume huge amounts of an organization's resources.

The Transaction Processing System (TPS) also provide data to employees that are involved in other business process such as The Management Information System (MIS), Decision Support System (DSS) and Expert System (ES). A Transaction Processing System serves as the foundation for other systems.

TPS perform the same routine operations daily. The amount of support for decision making that a TPS directly provides to managers and workers is low. This system requires a large amount of input data and produces a large amount of output without requiring sophisticated or complex processing. Its main purpose is to computerize existing manual system for faster processing, reducing clerical costs and improved customer service.

THE INFORMATION SYSTEMS AND UBG

The primary banking operations involve deposits and credits. Deposits operation is the business of taking deposits and withdrawals, and credit operation is the business of lending moneys to consumers or companies. Deposits operations are manage by the operations departments, while credit departments manage credits operations.

However, today the business scope of a bank has expanded into a more wide landscape. Remittances, insurance, foreign currency exchange and investment consultations are among the modern day services provided by banks. Hence, the Information System has becomes one of the most important departments in any bank.

As the fastest growing Commercial Bank in Africa, Untul Bank Group (UBG) has also started to use the benefit of computerized information system since early 80s. Started with the PB Olifin operation system, UBG is now using three major Information Systems categories to simplify its operations and enhance its security.

Branch Delivery System (BDS), which is running in with the concept of Transaction Processing System (TPS), was introduced in 1999. It was the replacement system for the old limited capability PB/Olifin system. The main objective of the new BDS system is to simplify and improvise the banking daily operations and has managed to close the gap between the operations with other systems and departments.

AS/400 is another system used by UBG, which possesses the elements of Management Information Systems (MIS). The system provides users with summary transaction or data from the data warehouse. AS/400 generates variety of scheduled and unscheduled reports for managers to monitor the bank's operational status. It also allows managers to view any specific information of a customer, from the screen of their computers at any time.

HRSS or Human Resource Self Service is running on the bank's intranet to simplify employees' related matters. Leave applications, salary slips, claims, appraisals and trainings are among the service functions available in the HRSS. With the concept of Office Automation Systems (OAS), the HRSS simplify management functions and reduced the need of papers.

Another important OAS that is used in UBG is the Windows Operating System (Windows). The system provides some of the most important Microsoft applications to improve staff performance quality. Microsoft Words, Excel and Power Point have enhanced productivity within UBG. It reduces a lot cost and time consumption to complete a task.

WHAT IS INFORMATION SYSTEM?

Information system is a set of interrelated elements or components that collect (input), manipulate (process), and disseminate (output) data and information, that provide feedback mechanism to meet an objective. Input is the activity of gathering and capturing raw data. Input can take in many forms, it can be manual process, or may be automated. Regardless of the input method, accurate input is critical to achieve the desired output. Processing involves converting or transforming data into useful outputs. Processing can involves making calculations, making comparisons and taking alternative actions, and storing data for future use. It can be done manually or with the assistance of computers. Output involves producing useful information, usually in the form of documents and reports. In some cases, output from one system can also become an input for another system. Output can be produced in a variety of ways. For a computer, printers and display screens are the common output devices. However, output can also be manual process involving handwritten reports and documents. Feedback is output that is used to make changes to input or processing activities. Errors or problems might make it necessary to correct input data or change a process. In information system, errors or exceptional reports can be generated to provide feedbacks. Feedback is also important for managers and decision makers. Output from an information system might indicate business and resources status as feedback to the managers or decision makers. Feedback can also be in the form of prediction of future events, which are called Forecasting. It can estimates the future performance of the organization and helps to avoid problems. Information system uses new technology to perform important tasks like handling of daily transactions, improve company productivity and help management to make decisions. Data, Software, Hardware, Procedures and People are the key elements of an information system. Business Information System is used specifically to help in the business related functions. It consists a series of subsystems that processes data into useful information. Each subsystem has its own purpose and functions. However, most subsystems are interdependent. Proper definitions and coordination allow multiple subsystems to connect and provide useful information for the management. There are six broad categories of Business Information Systems. Operational Systems / Transactional Processing Systems (TPS) Management Information Systems (MIS) Decision Support Systems (DSS) Office Automation Systems (OAS) Expert Systems (ES)