Performance of Online Banking of Mercantile Bank Limited
Subject: Banking | Topics:

General objective of this report is to present an over view of the communication system of Online Banking of Mercantile Bank Limited. Other objectives are gather comprehensive knowledge on Online Banking function of Mercantile Bank Limited and to know how this organization plays its role in the online business. Report also focus on to know how the Online Banking performed its activities. Finally draw SWOT analysis and make recommendation.

Introduction

The banking industry has been experiencing a dramatic technological change over the past two decades. Technologies, such as telephone banking, ATMs, online banking, and electronic funds transfers, have allowed financial institutions to reduce branch. Customers use online banking to carry out routine transactions. So Online banking has become the main way of communication between the bank and the customers. It is also helping the management to make their decision instantly. The use of information technology (IT) has also become the main medium of communication. Using customized banking software customers are getting their information quickly and smoothly, on the other hand decision makers are generating reports to make their decision in one click. Now customers can know their account status from any where of the world through online banking software. With the help of the IT customers, decision makers and organization all are benefited at the same time. The use of information technology (IT) as a competitive weapon has become  popular; but there is still a marked lack of understanding of the issues that determine the influence of information technology on a particular organization and the processes that will allow a smooth coordination of technology and corporate strategy. In this paper we tried to find out the IT enabled business process of Mercantile Bank Limited. Finally we made some recommendation about developing the business process.

Mercantile Bank Limited follows the conservative approach in case of Information Technology. IT is now used by all of the private commercial banks (PCB). For that reason to be competitive among all they need to provide standard service in a least cost way. For this reason they develop their own integrated banking software that save huge money but give more flexibility. They also hire POS network and ATM booth. They strongly belief competitive advantage in IT exist in cost side. Mercantile Bank Limited is done good job in case of Architecture and Infrastructure also. They maintain trained staff and own IT department to get prompt IT solution. In infrastructure (hardware, software, network and data) this bank maintains a moderate level quality. They keep database centrally that give extreme support to the online service of the bank.

 

Objectives of The Report

The major objectives are to measure and evaluate the performance of Mercantile Bank Limited based on Online Banking, to get an overall idea about the Online business and also to figure out the weakness in performance in Online Banking and construct the ways of recovery.

The specific objectives of the study are as follows:

  • To present an over view of the communication system of Online Banking of Mercantile Bank Limited.
  • To gather comprehensive knowledge on Online Banking function of Mercantile Bank Limited.
  • To know how this organization plays its role in the online business.
  • To know how the Online Banking performed its activities.

 

Backdrop Of The Bank

Banking system occupies an important place in a nation’s economy.  Banking institution is indispensable in a modern society and it plays a vital role in the economic development of a country. Against the background of liberalization of economic policies in Bangladesh, Mercantile bank Limited emerged as a new commercial bank to provide efficient banking services with a view to improving the socio-economic development of the country.

Mercantile Bank Limited is a scheduled private commercial bank established on May 20 , 1999 under the Bank Company Act, 1991 and incorporated as a Public Limited  Company under Company Act, 1994. The Bank started commercial banking operations from June 02, 1999. During this short span of time, the Bank has been successful to position itself as a progressive and dynamic financial institution in the country.

The Bank had been widely welcome by the business community, from small entrepreneurs for forward-looking business outlook and innovative financing solutions. Thus, within this short term period. It has been able to create an image for itself and has earned significant reputation in the country’s banking sector as a bank with vision. The company Philosophy –“efficiency is our strength” has been exactly the essence of success of this Bank.

Mercantile Bank Limited has been licensed by the Government of Bangladesh as a scheduled Bank in the private sector in the process of the policy of liberalization of banking and financial services of Bangladesh. In view of the above, the Bank has, within a period of nine years of its operation, achieved a remarkable success and has always met up capital adequacy requirement set by Bangladesh Bank.

There are twenty-seven Sponsors involved in creating Mercantile Bank Limited; the sponsors of the Bank have a long heritage of trade, commerce and industry. They are highly regarded for their entrepreneurial competence. The sponsors happen to be member of different professional groups among whom are also renowned banking professionals having vast range of banking knowledge. There are also members who are associated with other   financial institution.

The board of directors consists of 21 members elected from the sponsor of the bank. And the board of directors is the apex body of e bank. All route matters beyond delegated owners of management are decided upon by or routed through the executive committee, subject to ratification by the board of directors.

 

Objectives Of The Mercantile Bank Limited

Objectives of this bank are divided in the two main parts:

Strategic objectives:

  • To achieve positive economies value added (EVA) each year
  • To be market leader in the product innovation.
  • To be one if the top three financial institution in Bangladesh in terms of cost efficiency.
  • To be one of the top five financial institution in Bangladesh in terms of market share in all significant market segments

Financial objectives:

To achieve a return on shareholders’ equity of 20% or more, on average.

Vision, Mission and Core values:

Mercantile Bank Limited aims to become one of the leading Banks in Bangladesh for their quality of operations in their banking sector. This bank has some mission to achieve the organizational goals.

Vision:

To ensure the competitive advantages by upgrading banking technology and information system and to meet the needs of the clients, capital adequacy, asset quality, sound management practice and enhance the profitability by creating corporate culture and strong capitalization.

Mission:

Mercantile Bank Limited provide high quality financial services to strengthen the well-being and success of individual, industries and business communities. And provide better benefits to their customer and good returns to their shareholders.

The Bank creates wealth for the shareholders for believe in discipline growth strategy. Also maintain congenial atmosphere for which people are proud and eager to work with this Bank.

 

Field Of Operations:

MBL, being one of the best financial intermediaries in the country, blended in operation in conventional banking, Merchant banking and Retail banking. The blending has been done with the objective of diversifying the operations for catering to the needs of the customers of the different sterna of the society from one viewpoint and for having sustainable growth in profitability and business with the least possible risk. The bank’s operations were diversified into the following areas of activities as a dynamic financial intermediary.

  • Conventional Banking operation
  • Lease finance operation
  • Merchant banking
  • Retail banking

In order to carry out the above operations of Mercantile Bank Ltd has set up the following divisions, departments and units in its head office. For the operations by the above-mentioned divisions, the bank has established the following divisions to provide support and internal services.

Table: Division Of MBL

Human resource divisionGeneral service division
Information Technology divisionMarketing division
Public relation divisionShare/customer care division
Financial administration divisionBranches control division

The professionalism, dedication and loyalty demonstrated by the client and people are the corner stone of the success in this bank. And the main aim of MBL is to improve the competitive position in the chosen market segments and make steady investment in the core business.

 

Overview Of Online Banking

Prelude

Online banking allows customers to perform a wide range of banking transactions electronically via the bank’s Web site. When first introduced, online banking was used mainly as an information presentation medium in which banks marketed their products and services on their Web sites. With the development of asynchronous technologies and secured electronic transaction technologies, however, more banks have come forward to use Internet banking both as a transactional as well as an informational medium. As a result, registered Internet banking users can now perform common banking transactions such as writing checks, paying bills, transferring funds, printing statements, and inquiring about account balances. Internet banking has evolved into a “one stop service and information unit” that promises great benefits to both banks and consumers.

Within a short span of time Mercantile Bank has established itself as one of the fast growing local private banks. It has at present a network of Thirty six branches serving many of the leading corporate houses and is gradually moving towards retail banking. Another significant delivery channel is its own as well as shared ATM Network. Mercantile Bank has a network of 15 ATMs . The other 19 ATMs are shared through ETN with eleven other banks.

Mercantile Bank symbolizes modern banking with innovative services in Bangladesh. It provides Online Banking, ATM Support, SMS Banking Services in the country. Their newly developed web application is fully authentic, secured and robust. This technology based services also provides customer Fund Transfer through internet, Debit/Credit Card facility, and free SMS message of special type of withdrawal from your account time to time.

All branches under online banking system will be able to do banking practices using a common server (which is centralized) from where only the branches will be able to enter using a common password. Any one including any client or any branch from any direction will be able to enter in the system to do banking transactions. Mercantile Bank’s online banking includes the following segments to provide services:

  1. Internet Banking
  2. SMS Banking
  3. ATM Banking
  4. Thumbpay Banking.

IT and its use as a source of competitive advantage

Competing for customers is nothing new for banks and lending institutions. The competition is simply more intense as the demand for loans and financial services increases. Yet while lower rates can get a customer’s attention, service often determines whether they remain a customer for the long term. When it comes to their own banking needs and schedules, consumers want convenience. They want service that’s efficient and personalized. At a branch location, in the main office, from a contact center, even banking by phone and online. Add it up and a customer’s banking experience requires total continuity and collaboration across a financial organization, including from a growing number of mobile workers. Add it up again, and convenience, service and efficiency put a lot of pressure on a communications system.

Online banking helps to do the administrative function with much ease. It helps administration to communicate both internally and externally. Such as administrative officer needs to issue a memo to finance and marketing department. In old days, he/she needs to write a memo but with the help of IT he/she can send the memo through email. Communication is much faster and easier in modern communication. It support externally as well as internally. So we need to know the technology which drives the communication system from behind. In next two chapters we discuss about the infrastructure and the business process of online banking of Mercantile Bank Ltd.

The use of information technology (IT) as a competitive weapon has become popular; but there is still a marked lack of understanding of the issues that determine the influence of information technology on a particular organization and the processes that will allow a smooth coordination of technology and corporate strategy. Now a days IT has become commoditized which makes ubiquitous IT a necessary expenditure for a firm but without gaining any competitive advantages. Though the public banks in our country are far behind these facilities still today but all the private banks can’t even think to survive and compete in the banking industry without being IT capable. Only the level of their achieving greater facilities and the way that makes them cost effective to the customer varies.

 

The challenges

Some objectives outlined Mercantile Bank’s customer service and business communications needs. The biggest objective, however, was to find a single communications system that could help meet each goal by reaching every corner of Mercantile Bank’s distributed banking operation. Improve customer service, as well as service offerings

  • Enhance current service offerings
  • Support self-service automation
  • Make service faster and more attentive organization-wide
  • Increase productivity by increasing efficiency
  • For business users at the main office and each branch
  • For agents and supervisors in the contact center
  • For remote agents/ employees and mobile workers
  • Improve communications control and business continuity
  • Move from the individual communications systems at each branch to one “global” system and central administration for all Mercantile Bank branch locations and enterprise operations
  • Streamline customer interactions and business communications between the main office, branch service centers, the contact center, and remote employees.

 

IT in banking industry

Banking has always been a highly information intensive activity that relies heavily on information technology (IT) to acquire, process, and deliver the information to all relevant users. Not only is IT critical in the processing of information, it provides a way for the banks to differentiate their products and services. Banks find that they have to constantly innovate and update to retain their demanding and discerning customers and to provide convenient, reliable, and expedient services. Driven by the challenge to expand and capture a larger share of the banking market, some banks invest in more bricks and mortar to enlarge their geographical and market coverage. Others have considered a more revolutionary approach to deliver their banking services via a new medium: the Internet.

 

Business process of online Banking

Internet Banking Services

Internet banking is very different from traditional IS. That is, Internet banking uses emerging technologies, such as the Internet and WWW, and enables customers (users of Internet banking) to perform financial activities in virtual space. Research on customer acceptance of Internet banking may, therefore, enhance the under standing of a customer’s beliefs to make him/ her use Internet banking, and show how these beliefs affect Internet banking customer behavior. Mercantile Bank also provides internet banking services. Internet Banking service Provides up-to-the-second account information, Internet Banking lets you manage your account from the comfort of your mouse – anytime, anywhere. Introducing a simpler way to register for Internet Banking Say goodbye to long queues and paper work. Presenting one more reason to register for Internet Banking.

  • What can I do using Internet Banking?
  • View Account Balances & Statements
  • Transfer Funds between accounts
  • Create Fixed Deposits Online
  • Request a Demand Draft
  • Pay Bills
  • Order a Cheque Book
  • Request Stop Payment on a Cheque

Business process:

To have internet banking facilities customer has to open an account in Mercantile Bank. Customer can open the account in any branch of Mercantile Bank. Customer can open account following the traditional procedures of opening account but in this case he has to mention that he wants online banking facilities. Customer has to provide an email account also. Mercantile Bank updates all the information regarding each and every transaction of the customer in their central database. When customer wants any kind of internet banking facilities he has to go to the website of the bank. After that he has to provide his account number and PIN (personal identification number). When he enters these information through the website of the bank he can connect to the central database form where he can take the facilities he wants. When bank get the required account and PIN number then the server which has division for specific services check the information’s authenticity. If the information provided by the customer is authentic then the server gives access to customer for the information required. Customer’s account information is identified, and a response is created and sent back to internet banking.

 

SMS Banking Services

The telecommunications industry worldwide has scrambled to bring what is available to networked computers to mobile devices. Presently, the use of electronic banking is considerably high and as more and more users sign up for electronic- banking, the maturity as regards remote banking (i.e. banking outside the banking hall) is on the increase. With electronic banking, users can now conveniently carry out banking transactions, but this convenience cannot be achieved if the user does not have access to the internet, hence, in other words, the user cannot carry out a banking transaction while waiting for a bus, or perhaps while having lunch in a restaurant. With SMS banking, convenience can be achieved 24hrs a day. This is because a user has access to his mobile phone all day, at all times. So, to effectively achieve a truly convenient banking mode, a truly mobile mode of banking has to be explored, hence the need for SMS Banking.

The SMS banking solution targets the retail banking industry and enables customers to make account enquiries and transact bank accounts through mobile phones. Banks can automatically send transaction notifications and alerts to mobile phones, if specific events in the banking business work-flow occur. The solution provides convenient and latest front-end technology and a flexible architecture to support an SMS based delivery channel and to provide significant benefits for both the bank and the customer. Mercantile Bank provides the following SMS banking services.

  • SMS Push service: when any amount is debited or credited from client’s account then within 5-10 seconds he will get a message. The message includes the beginning balance, the amount debited or credited and the last balance. This facility is only available for Grameen Phone and City cell subscribers.
  • SMS Pull service: Every registered Grameen Phone and City cell subscribers can check their account balance through this service. They can get a mini statement of last five transactions of their account.

 

Business Process:

SMS Banking is a Mobile technology that allows you to request and receive banking information from your bank on your mobile phone via Short message service (SMS). Individuals or corporate bodies can manage their bank accounts, check their account balances, perform check requests, money transfers, pay some bills, and perform other banking transactions using their mobile phones. There are two methods of SMS widely used in applications; they are the PUSH & PULL. Push SMS is sending a message from an application (i.e. SMS Server in this case) to the Mobile Phone. It is a one way message. In other words, it’s the mobile application (in this case, the SMS banking application) that initiates a message. An example could be a deposit alert, which alerts the user when a deposit is made to his/her account. Pull SMS is sending a request and obtaining a reply. This is a full duplex scenario where a user sends a request to the SMS banking application and the application replies with the information requested. An Example is when a user requests his bank account balance.

A customer willing to have this service has to have an account with Mercantile Bank. He can open his account following the traditional method but he has to mention about the specific services at the time of opening the account to get sms banking facilities. The customer must be a subscriber of Grameen Phone or City Cell Telecommunication Company. Mercantile Bank maintains a symmetric dedicated line with Grameen Phone and City Cell. This line is like intranet and not for public use. A customer willing to have this service will provide his account number and PIN code through sms to a specific number provided by the bank. After getting the sms Grameen Phone or City Cell will check the Code and tracking number of the customer. Then the companies will send the requirement of the customer with the specific tracking number to Mercantile Bank. Mercantile Bank will then check the number whether they match with the information kept by them. If the information matches with the information kept in the database of the bank then the bank send the information to the Grameen Phone or City Cell. Then the company provides the information to the customer.

 

ATM Banking Services

Automatic teller machines (ATMs) ensure that cash is easily accessible, whenever and wherever someone needs cash. It helps businesses facilitate cash-only transactions and you avoid the mounting fees of credit card processing or check cashing, while also generating revenue for your business via a share of the transaction fees collected by the ATM provider. The Bank carries its banking activities through 36 branches in the country. Mercantile Bank customers have access to 34 ATMs as a member of ETN. Under the ATM network the software enables direct linking of a client’s account, without the requirement of a separate account. The Bank has already set up its own ATM machine at 15 corresponding branches and is also in the process of setting up its own ATM network at every focused point in the city with a view of providing retail banking services.

Business Process:

After opening a bank account in the bank the customer is provided with ATM card and also his password. Customer will go to any ATM booth of the bank and punch his card and then provide the password with mentioning the required amount of money. When he provides his password the bank check it with their database information. If there is balance in the customer’s account the server of the bank give the ATM machine confirmation to provide the customer the required money.

 

Thumb Pay Banking Services

Mercantile Bank Limited has proudly announced the launching of its (M-Banking Product) “THUMBPAY”. It will allow its customers to access their bank accounts from their Mobile Phone. This latest technology driven product is designed to cater for and facilitate real time banking transactions using a mobile phone and will be currently available to AKTEL subscribers only.

Customers need to fill up a registration form for “THUMBPAY” service. All branches of Mercantile Bank are ready to give this service to its valuable clients.

Services available under “THUMBPAY”

  1. Account Balance Query: Clients can check their account balance at any time and from anywhere in the Bangladesh just after 15 seconds from their query through SMS
  2. Pre-paid refill: Eligible clients will be able to share the pleasure to refill their own account and also the account of third party through SMS.
  3. Post paid bill Payment: Post paid AKTEL subscribers can pay their mobile bill as well as others from their account through SMS.
  4. Fund Transfer service: Customers will be able to transfer fund from one account of Mercantile Bank to another.
  5. Changing password: Every customer will be given an initial password to avail the “THUMBPAY” service. They can change the password subsequently by SMS.
  6. Real Time Round The clock: This service is available round the clock and real-time basis from anywhere.

Business Process:

Customers willing to have this service must fill up the specific registration form. Then he will be given an initial password. This password is changeable at any time. Then customer has to send sms by following a specific procedure required by Mercantile Bank and AKTEL, including his password. Mercantile Bank has established a symmetric dedicated line with AKTEL which is like intranet and of no public uses. When AKTEL get request from the customer, it send the information to Mercantile Bank. Then it checks its database for required information and confirms AKTEL for the information or transfer the bill from the customer’s account to AKTEL’s account. After getting confirmation AKTEL give the information to the customer or recharge the required account.

Two key feature of Business Process

Customer Response Time: Customer response time is very important in online banking. If customer does not get response in proper time then it can be the cause of losing their confidence. Mercantile Bank is very much concerned about this matter. They try to response within 15 seconds after a customer command for their requirement. But maximum time it depend on some matters like

  • Volume of information required by the customer
  • Network Speed of Mercantile Bank.
  • Network speed of the mobile phone companies.

If customer wants any specific transaction data then it is very easy to ensure the response rate within 15 seconds. But when customer require one year’s transaction details then it require some times

Network speed of Mercantile Bank is maintained by three companies Rankstel, Ektoo Limited, Link3. They are very sincere in marinating a very high speed which can provide customers information in a required way.

Accuracy of Data:

If any mistakes or wrong information is identified by the customer or any employee of Mercantile Bank which was happened at the time of data entry then it is to be informed to the respective manager. Customer can inform him through the Complain Center of Mercantile Bank. Then the manager can edit the correct information according to the authority he has been given.

 

Architecture and Infrastructure of online banking

Need for a standardized infrastructure in banking

Many large banks built their teller system, branch platform, call center, and other channel applications separately over many years. These applications often communicate with disparate core application systems and are in effect in silos that don’t communicate with each other. This lack of integration affects customers as well as frontline bank employees and operations staff.

To transform the customer, employee, and operations experience, banks need to integrate their systems to deliver a seamless, cross-channel experience, and that requires a standardized technology infrastructure based on industry standards.

As a for profit organization, Mercantile Bank wants to improve stockholder wealth as well as contribute to the poverty reduction as part of corporate social responsibility (CSR). They want to introduce very high class banking to support business. That satisfy customer, improve business environment and encourage country’s growth.

 Information Technology Architecture

Now a day banking industry fully depends on information flow. Payments, receipts all those things done in eyeshot. So to be competitive, Mercantile Bank also needs to provide services as fast as possible. The main concern of IT for Mercantile Bank to reduce processing time of the user. They concern about following Business Requirements to set up IT architecture:

  • Bank must maintain a one stop databank for its entire user.
  • It should maintain a hot line with all of its branches and partners both nationally and internationally.
  • It should provide the information to its customer with very flexibility.
  • It should keep its central database up-to-date as soon as the transaction is incurred.
  • It should provide information to its customer through website, mobile devices etc.
  • It should segment it’s IT in two distinct parts: Maintenance and Development.
  • Its service need to be cost competitive.

Information Technology Infrastructure

In order to support the above business requirement the bank needs a very strong infrastructure, which must provide speed and accuracy. The infrastructure also must provide cost competency so that the profitability is not hampered while maintaining the reliability of the customers. Infrastructure consist mainly four types of components. They are

  • Hardware
  • Software
  • Network
  • Data

Hardware:

Mercantile Bank uses mostly PCs. These PCs have communication facilities and access with the server situated in Scotia branch. They have currently 560 personal computers for their operations. Because of confidentiality and some other protocols, we can not obtain exactly how many computers are used for the above business requirements. These personal computers are branded (e.g., IBM, DELL, & COMPAQ). These computers are connected to each other.  They use a server in the databank. It maintains all the channels of different branches, operators, international organization (SWIFT), and ATM booths. They maintain wiring in fiber optical cable. This communication hardware is supplied by the network service provider.

Software:

Mercantile Bank use integrated software for all their banking activities. Its name is Stelar. This software is developed by ERP, a joint venture of Ranks Itt, Mercantile Bank and Dubai based software developing firm Emirates. Mercantile Bank in sourcing the package because they want to develop the IT as their business process needs. They achieve flexibility by maintaining an in house IT department. Continuously they develop and add features to their software and satisfy business needs accurately.

Key benefits:

  • Saves valuable time of user
  • Provides secure transactions
  • Provides valuable information
  • Makes Banking easy
  • SMS passes information quickly
  • Provides alert

WAP banking provides:

  • Single point solution for both customers and banks
  • Reduced cycle time in transactions
  • Any-where any-time access
  • Integrated Web based Infrastructure for banking
  • Low rollout costs
  • An extensible and distributed system with fast information routing
  • Enforce business rules
  • Provides online information on the status of user requests, thus saving time and effort on follow-up – Easy to track different activities status.
  • Personalization and Membership
  • Digital Signature based Authentication and Security for users and application
  • Architecture for designed to be scalable and support high-volume multiple transactions Windows 2000 platform.
  • DNAs framework to interoperate with existing IT infrastructure and applications

Network:

To provide speed and reliability to its customer Mercantile Bank has to maintain a well established network with all of its branches and co partners. Mercantile Bank is connected with every branch all over in Bangladesh. The network description is given below

  • High Speed DDN and Radio Link connectivity between Branches and the Head Office
  • Local Area Network (LAN) – providing data network connectivity at the Head Office and the Branches
  • Metropolitan Area Network (MAN) – connecting the DHK branches with HO, CTG branches and SYL branches.
  • Wide Area Network (WAN) – enabling the data network circle between Head Office and the Branches
  • Dial-up lines, routers, hubs, switches and firewalls according to the requirements of the network systems.
  • An especially dedicated line with GRAMEEN PHONE, AKTEL and CITY CELL.
  • Solid foundation over data and network security implementation

Data:

Mercantile Bank maintains a centralized database. This database is maintained by the IT department of the bank. Data is updated by the employee engaged with the related transactions. Every employee has specific authority about editing the database. Any type of change in database beyond that limit is punishable. The branches are connected with the head office and up-to-dates the database following every transaction. The database comprised with the PCs created a Client-Server network. The server is at the head office and the branch PCs as well as other PCs at the head office are clients. At the same time all branches have their unique code through which they can access to the main server and share data from there.

 

Recommendation & Conclusion

Recommendation

By analyzing Mercantile Bank’s IT sector and compare with my theoretical knowledge gathered for the MIS course I identified some critical factors which are very much important for communication system and online banking. These are:

  • Improved accessibility, reliability, user-friendliness and security in the IT systems and services made available to the customers.
  • Adequate and appropriate facilities with pertinent standards and guidelines which are being regularly updated to meet challenging and changing needs.
  • Acceleration of IT literacy and sophistication among the users.
  • A need to identify the administrative procedures that can be improved using IT and to target administrative and faculty heads and their administrative support personnel to adopt new IT-based processes.
  • Top-down involvement and support is essential to bring about effective gains in the use of IT.
  • Competitive remuneration and rewards for IT staff.
  • Co-operative involvement of staff (both IT and administrative) and decision makers in the use of IT for appropriate alignment with business requirement and IT technology, and appropriate incentives to encourage such efforts.
  • Greater accountability in services, support and usage of IT resources

Mercantile Bank should consider the above criteria to provide customer the best service which will add value to their company while at the same time will make them able to survive in the competitive field.

 

Conclusion

Effective communication sets the foundation for individual and organizational success. Communication in today’s business place has become more complex, with the introduction of technology presenting both opportunities and challenges. Robust organizations demand effective communicators that can effectively manage business and organizational changes, concerns or events using technological as well as traditional means.

From the practical implementation of customer dealing procedure during the whole period of our practical orientation in Mercantile bank limited I have reached a firm and concrete conclusion in a very confident way. I believe that my realization will be in harmony with most of the banking thinkers. It is quite evident that to build up an effective and efficient communication system to the highest desire level computerized transaction is a must.

The MERCANTILE BANK LIMITED has been trying to operate its business successfully in Bangladesh from 1999. MERCANTILE BANK LIMITED has already developed an image of goodwill among its clientele by offering its excellent services. This success has resulted from dedication, commitment and dynamic leadership of its management over the period. Despite the fact that, during the short span of time of its operation, the bank could successfully occupy a position as a progressive and dynamic financial institution in the country, it suffers from some weaknesses, it is expected that in the near future MERCANTILE BANK LIMITED may become one of the top performers in the banking sector.

In last words, it can be state that, Mercantile Bank is a moderately advance IT based bank. But the important thing is that their IT strategy completely matches their corporate strategy. As a new bank it is still improving their IT sector. They initiate Enterprise Resource Program (ERP) for their bank that is an integrated database and workstation. Initiation of ERP boosts their performance largely.

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