Remittance Management System(RMS) of Sonali Bank Limited (Part-3)

4.2 INTRODUCTION:

Remittance Management System is a customized process of sonali Bank Limited. This is totally bank’s own system where foreign remittance  were processed. Basically bank collects the remittance from the 41 exchange houses of different foreign countries. This exchange house collect money from the customers and then send information about the customers to the bank. There are two processes for sending the information to the bank.

  1. EFT(Electronic Fund Transfer)
  2. SWIFT(Society for worldwide inter bank fund telecommunication)

After receiving this data bank process this data with the help of a customized software which is prepared for process this data. This software is called Remittance Management System (RMS) software. Some high quality, energetic, IT specialist and dynamic young group are engage to ensure the faster and swift service to the customers.

The exchange house collect information from the customer’s regarding their –

PON (Payment Order No) No

Date

Beneficiary Name

Account Name

Amount

Remitter Name

Beneficiary Branch Name etc.

The bank has installed RMS at Wage Earner’s Corporate Branch (WECB), Dahka. The incoming remittances are downloaded and processed at WECB using RMS.

RMS captures various structured remittances from various exchange company and converts it into a unique structure and imposes a security. After capturing the remittances RMS receives an administrative password, a part-1 test key holder password, a part-2 test key holder password and two signatures activation password daily. In RMS there are 20 (Twenty) parameterized signature. We can change the signatory dynamically per day. RMS has automated secured test key module. So RMS generates test key automatically for every amount. Then we accumulate the TRA data of various exchange company and impose three types of security and validate using RMSDataCenter for live outlets.

The RMS module of outlets receives incoming remittance data packet & validate it. After validation the TRA prints automatically with two signatures and a test number. An authorized signatory of outlets sign on TRA as third signature and distribute it. The TRA of distance location is distributed over phone initially and put a seal on TRA as “ credit over phone”.

The outlet collect the credit date of TRA from branches and sends a feedback file to WECB. This feedback is used for Reconciliation and overseas exchange company/Bank.

4.2.1 Features of RMS (Remittance Management System) for Middle East Remittance

  • Credit beneficiary Account within 8-24 Hours.
  • Auto TRA issue
  • Auto Test Number for any amount (Parameterized)
  • Auto Signature (Parameterized)
  • Highly secured data transmission
  • Auto Feed Back
  • Data Ready for Reconciliation
  • Unique platform for all exchange company
  • Consolidated Data packet for all overseas exchange/Bank
  • Missing data packet traceable by outlet software
  • Single Copy instrument print
  • Additional instrument copy prints with “Care Duplicate”.
  • Generate all types of required statements
  • 100% parameterized Software
  • Only local TRA prints at WECB (Wage Earner’s Corp Br)

4.2.2 A short over view of RMS is shown below:

Untitled

4.2.3 OPENING CEREMONY OF REMITTANCE MANAGEMENT SYSTEM SOFTWARE

Capture

4.2.4 LIST OF DIFFERENT EXCHANGE COMPANY:

SL

NAME OF EXCHANGE COMPANY

DAY BOOK

A/C NO.

1

A. Aziz A. Al-Zamil Co. K.S.A

72

33030012

2

Al Amoudi Ex. Co. K.S.A

63

33027066

3

Al Ansari Exchange, U.A.E

62

33025342

4

Al Mulla International Ex. Co, Kuwait

58

33024955

5

Al Muzaini Exchange Co, Kuwait

47

33016498

6

Al Omary Est. K.S.A (Closed)

56

33024732

7

Al-Moosa Exchange Company. W.L.L, Kuwait

69

33028683

8

Alrajhi Bank Riyadh, K.S.A

30

A-693

9

Alrajhi Commercial Foreign Ex. Co, Jeddah, K.S.A

49

33017587

10

Al Rostamani Ex. Co. U.A.E

52

33020855

11

Arab National Bank, K.S.A

65

33028873

12

Bahrain Exchange Company, Kuwait

33

B-110

13

Bahrain Financing Co. Bahrain

32

B-109

14

Bank Al Bilad, K.S.A

64

33028808

15

Citi Bank NA, U.S.A

59

33024872

16

City International Exchange, Kuwait

19

C-25

17

Commercial Bank of Oman/Bank Muscat, Oman

23

C-26

18

Dalil Exchange Co. Bahrain

55

33023214

19

Daulat Enterprise, Canada

61

33025813

20

Dollarco Exchange Co. Ltd. Kuwait

36

D-103

21

Eastern Exchange Establishment, Qatar

11

E-13

22

Eastern Union Remittance & Exchange Ltd, UK

67

33029475

23

Gulf Overseas Exchange Co. Oman

26

G-49

24

Habib Exchange Co. U.A.E

53

3302268

25

Indian Bank,  Singapur

66

33029293

26

Injaz Money Exchange, K.S.A (Closed)

60

33025846

27

Kuwait Bahrain International Exchange Co, Kuwait

27

K-121

28

Kuwait Overseas Ex. Co. (Closed), Kuwait

45

33012803

29

Lari Exchange Establishment UAE

71

33029252

30

Mashreq Bank, U. A. E

13

B-16

31

National Bank of Oman, Oman.

17

N-99

32

National Money Exchange, Kuwait

46

33016176

33

Oman & UAE Exchange Centre Oman

70

33029632

34

Oman Exchange Co. Kuwait

10

O-6

35

Oman International Exchange, Oman

22

O-11

36

Redha Al Ansari Exchange

73

33031919

37

Trust Exchange Company W.L.L, Doha, Qatar

68

33029244

38

U.A.E Exchange Co, Kuwait

57

33024897

39

U.A.E Exchange Co. U.A.E

50

33017975

40

Wall Street Exchange, Dubai, U.A.E

41

33011326

41

Zenj Exchange, Bahrain

42

33012828

4.2.5   COMPARATIVE STATEMENT OF NO. OF REMITTANCE IN US DOLLAR FOR THE YEARS 2004– 2007

Year

2004

2005

2006

2007

 

No. of

US Dollar

No. of

US Dollar

No. of

US Dollar

No. of

US Dollar

Month

Remittance

(Million)

Remittance

(Million)

Remittance

(Million)

Remittance

(Million)

January

68214

118.75

54301

95.92

51656

93.03

46428

87.29

February

41656

80.45

47085

96.53

49057

98.50

48562

96.87

March

51670

103.44

54677

116.72

55669

115.10

54930

91.27

April

48441

87.80

52845

111.03

50513

93.93

59061

94.21

May

51917

81.06

48902

88.12

55032

119.10

58278

99.25

June

53452

101.20

51800

85.66

51550

102.68

55165

94.61

July

53316

91.70

49339

90.83

50933

101.73

64898

111.09

August

52047

89.85

53744

107.90

58379

90.68

60755

90.16

September

51394

93.10

55022

98.04

59229

114.43

88227

111.48

October

66015

92.72

75577

88.08

61564

91.17

60792

97.66

November

52825

84.27

43904

78.49

57587

108.13

66747

96.17

December

51105

114.00

61038

111.49

66255

123.32

65122

108.88

Total:

642052

1138.34

648234

1168.81

667424

1251.80

728965

1178.94

4.2.6   COUNTRY WISE COMPARATIVE STATEMENT OF FOREIGN REMITTANCE

Month

Jan-06

Jan-07

Feb-06

Feb-07

Mar-06

Mar-07

Apr-06

 Apr. 07

Country

NO OF REMITTANCE

Saudi Arabia

18390

22640

19734

25314

23989

28734

21344

31418

Kuwait

1229

1288

1305

1142

1317

1096

1135

1325

Qatar

8

10

13

10

9

9

11

7

U.A.E.

293

392

223

404

225

457

245

504

Oman

40

37

28

36

52

42

35

39

Bahrain

184

103

151

96

170

120

135

145

U.K.

15990

8570

13378

8431

12948

8771

11157

8870

U.S.A.

14378

12560

13236

12272

15843

14743

15455

15582

Japan

47

39

49

52

48

48

56

68

Singapore

4

10

Germany

133

139

171

130

185

162

169

187

Malaysia

626

293

468

355

557

367

394

417

Other

334

357

301

320

326

381

367

499

Total:

51656

46428

24

48562

55669

54930

50513

59061

4.2.7 LIST OF DIFFERENT EXCHANGE COMPANY UNDER RMS

SL

NAME OF EXCHANGE COMPANY

DAY BOOK

A/C NO.

4

Al Mulla International Ex. Co, Kuwait

58

33024955

8

Alrajhi Bank Riyadh, K.S.A

30

A-693

11

Arab National Bank, K.S.A

65

33028873

14

Bank Al Bilad, K.S.A

64

33028808

16

City International Exchange, Kuwait

19

C-25

23

Gulf Overseas Exchange Co. Oman

26

G-49

34

Oman Exchange Co. Kuwait

10

O-6

35

Oman International Exchange, Oman

22

O-11

4.2.8   PERFORMANCE ANALYSIS OF DIFFERENT EXCHANGE COMPANY USING RMS

4.2.8.1 Alrajhi Bank Riyadh, K.S.A

YEAR-2006

NO OF INCOMING REMITTANCE

YEAR-2007

NO OF INCOMING REMITTANCE

JANUARY

14702

JANUARY

20831

FEBRUARY

15878

FEBRUARY

23177

MARCH

19714

MARCH

26505

APRIL

17626

APRIL

28862

MAY

20422

MAY

28408

JUNE

29614

JUNE

20046

JULY

20887

JULY

30450

AUGUST

24161

AUGUST

29748

SEPTEMBER

25116

SEPTEMBER

39174

OCTOBER

21217

OCTOBER

27052

NOVEMBER

26514

NOVEMBER

33528

DECEMBER

26979

DECEMBER

30325

4.2.8.2 Bank Al Bilad, K.S.A:

YEAR-2006NO OF INCOMING REMITTANCEYEAR-2007NO OF INCOMING REMITTANCE

JANUARY

7431

JANUARY

8392

FEBRUARY

7645

FEBRUARY

9281

MARCH

7767

MARCH

9762

APRIL

7790

APRIL

10515

MAY

6940

MAY

10814

JUNE

7214

JUNE

10781

JULY

7140

JULY

11901

AUGUST

7230

AUGUST

12076

SEPTEMBER

7421

SEPTEMBER

15624

OCTOBER

7520

OCTOBER

11136

NOVEMBER

7418

NOVEMBER

13726

DECEMBER

7216

DECEMBER

12095

4.2.8.3 ARAB NATIONAL BANK

YEAR-2006

NO OF INCOMING REMITTANCE

YEAR-2007

NO OF INCOMING REMITTANCE

JANUARY

2916

JANUARY

5032

FEBRUARY

2845

FEBRUARY

5130

MARCH

2655

MARCH

5173

APRIL

2930

APRIL

5018

MAY

3001

MAY

5042

JUNE

2874

JUNE

4547

JULY

3055

JULY

5135

AUGUST

3125

AUGUST

5418

SEPTEMBER

3345

SEPTEMBER

6640

OCTOBER

3560

OCTOBER

4959

NOVEMBER

4055

NOVEMBER

6387

DECEMBER

4120

DECEMBER

6010

4.2.8.4 Al Mulla International Ex. Co, Kuwait

YEAR-2006

NO OF INCOMING REMITTANCE

YEAR-2007

NO OF INCOMING REMITTANCE

JANUARY

907

JANUARY

1468

FEBRUARY

1108

FEBRUARY

1497

MARCH

1221

MARCH

1557

APRIL

1265

APRIL

1375

MAY

1285

MAY

1409

JUNE

1208

JUNE

1462

JULY

1370

JULY

1500

AUGUST

1382

AUGUST

1202

SEPTEMBER

1397

SEPTEMBER

1316

OCTOBER

1402

OCTOBER

1645

NOVEMBER

1458

NOVEMBER

1581

DECEMBER

1421

DECEMBER

1908

4.2.8.5 Gulf Overseas Exchange Co. Oman

YEAR-2006NO OF INCOMING REMITTANCEYEAR-2007NO OF INCOMING REMITTANCE

JANUARY

1020

JANUARY

1222

FEBRUARY

1058

FEBRUARY

1287

MARCH

1173

MARCH

1302

APRIL

1182

APRIL

1225

MAY

1198

MAY

1195

JUNE

1222

JUNE

1125

JULY

1202

JULY

1208

AUGUST

1258

AUGUST

906

SEPTEMBER

1277

SEPTEMBER

1106

OCTOBER

1267

OCTOBER

1235

NOVEMBER

1272

NOVEMBER

1437

DECEMBER

1287

DECEMBER

1446

4.2.8.6 City International Exchange, Kuwait

YEAR-2006NO OF INCOMING REMITTANCEYEAR-2007NO OF INCOMING REMITTANCE

JANUARY

1805

JANUARY

2062

FEBRUARY

1888

FEBRUARY

2130

MARCH

1902

MARCH

2247

APRIL

1856

APRIL

2018

MAY

1938

MAY

2177

JUNE

1958

JUNE

2285

JULY

1968

JULY

2307

AUGUST

1975

AUGUST

2040

SEPTEMBER

1968

SEPTEMBER

2403

OCTOBER

2010

OCTOBER

2160

NOVEMBER

1998

NOVEMBER

2075

DECEMBER

1987

DECEMBER

2550

4.2.8.7 Oman Exchange Co. Kuwait

YEAR-2006NO OF INCOMING REMITTANCEYEAR-2007NO OF INCOMING REMITTANCE

JANUARY

2925

JANUARY

3109

FEBRUARY

2998

FEBRUARY

3287

MARCH

3019

MARCH

3548

APRIL

2945

APRIL

3348

MAY

3087

MAY

3228

JUNE

3121

JUNE

3401

JULY

3148

JULY

3365

AUGUST

3068

AUGUST

3106

SEPTEMBER

3085

SEPTEMBER

3205

OCTOBER

3105

OCTOBER

3540

NOVEMBER

3140

NOVEMBER

3680

DECEMBER

3208

DECEMBER

3993

4.2.8.8Oman International Exchange, Oman

YEAR-2006NO OF INCOMING REMITTANCEYEAR-2007NO OF INCOMING REMITTANCE

JANUARY

1740

JANUARY

2142

FEBRUARY

1865

FEBRUARY

2268

MARCH

1902

MARCH

2358

APRIL

1967

APRIL

2218

MAY

1985

MAY

2123

JUNE

2087

JUNE

2095

JULY

2137

JULY

2020

AUGUST

2204

AUGUST

2205

SEPTEMBER

2185

SEPTEMBER

2106

OCTOBER

2019

OCTOBER

2430

NOVEMBER

2120

NOVEMBER

2600

DECEMBER

2254

DECEMBER

2900

If we analyze the charts then we see that in 2006 the incoming remittance is lower than 2007, because in 2007 these eight exchange house are working with RMS that is why the flow of remittance is higher than last year.  It reduces the operating costs by 60-80%. It reduces the time limit, in 2006 it takes 2-5 days to deposit money but in 2007 it takes 1-2 days to deposit. Over 58 outlets are engage in RMS. They receives data from Wage Earner,s corp br by e-mail and deposits the money in the beneficiary account in 12-24 hours. Our 1188 branches help the customers to receive these foreign remittance and they are now very much satisfied with this service provide by the bank.

5.1 Problems of Sonali Bank and suggestions:

There are many problems, which affect the smooth and profitable operations of commercial banks. For Sonali Bank as well these problems pose a great threat of carrying out its normal operations smoothly. They are summarized below:

1. Problems in RMS & suggestions:

Problems in RMS are given below:

  1. Lack of skilled manpower
  2. Lack of Internet facility
  3. Lack of management
  4. Lack of data processing system
  5. Lack of networking
  6. Lack of monitoring
  7. Lack of reporting
  8. Problems in software (it is now in the ongoing process)

Suggestions:

  1. Manpower should be trained
  2. High speed internet facility should be implemented
  3. Proper computerization should be implemented
  4. Networking should be improved
  5. Established a proper monitoring cell to control the queries of the customers
  6. Reporting system should be developed
  7. Problems of software should be managed soon.

OTHER PROBLEMS AND SUGGESTION

2.Employment balance:

There are more than 1,000 branches of Sonali Bank all over Bangladesh and outside Bangladesh. But all the branches are not balanced from employment point of view. Some branches of Regional/Principal offices have over employment while some faces the problem of under employment. The balance of the personnel working in each branch has to be set properly depending on the volume of work.

2. CBA(Cumulative Bargaining Agent):

Probably all the government financial institutions face some sort of problems from this organization. Sonali bank is also no exception. CBA has its clutches in almost every affair of banking operations. In employment, promotion, transfer, loan sanction, and overtime and in other affairs too it spreads it unwanted hands to hinder bank’s progress. The scope and sphere of CBA has to be diminished in order to make the organization more profitable.

3.Banking Policy:

Banking policies are generally made at the Ministry of Finance and the policies are scrutinized and implemented by the Bangladesh Bank. Later, the Bangladesh bank enforces these rules and regulation, interest rates, loan disbursement etc. important banking factors for other commercials banks and financial organizations. In many cases, the faulty decision-making and policymaking costs commercial banks dearly. So, before making any sort of drastic decision regarding policymaking the government should at least discuss with the top management of the commercial banks.

4.Weak management:

Sonali bank faces severe lack in strong management policy. Most of the top management are influenced by the government bodies like Bangladesh bank and Ministries. They are not allowed to work freely rather depend heavily on government organizations as such. So in most cases independent decisions do not come from bank officials.

5. Online Banking:

Although Sonali Bank has taken the facility of using computers in maintaining cash and other sections but still it has not taken the full advantage of the modern day wonder of full fledged computer facilities. Most of the private banks are operating 24 hour basis online banking – the sector still ignored by Sonali Bank. All the branches do not maintain their ledgers using computers yet. Money transfer in different modes, wage earners and foreign exchange etc. has not still taken up by the computers till now.

6. Poor Service:

This is basically due to lack of manpower against huge amount of work the bank usually deals with. Sonali bank does what a private bank does, apart from that it also works as the treasury service of the government, utility services, passport services, foreign currency service and virtually all the services that can be done by a bank is done by Sonali Bank. Considering huge amount of work some branches notoriously lag enough manpower against it. It is not the efficiency of the workers that is lagging, but it is the huge amount of work to be done is not met by mere manpower.

7. Lack Of Reconciliation:

The National bank of Pakistan still owes a huge amount of money to Sonali Bank Limited. The money dispute is yet to be solved. In 1971, Sonali Bank Limited the then National bank of Pakistan had balance of about 70 crore rupees with the latter bank. Which was not credited to Sonali bank till date. Today (considering interest and time value of money) the amount would have been too great a value to offset the losses that the bank faces today. If Bangladesh government had taken appropriate diplomatic measures to reconciliate all this money the financial condition of the bank would have been much better than what it seems today.

8. Loan Default:

We have already considered data where we have found the recovery of Sonali Bank’s credit is very poor. There are many reasons behind it and discussed in the ‘Advances section’. The culture of loan default has to be overcome taking appropriate measures.

Sonali bank has to follow the above suggestive measures, so that its performance, deposit disbursement, recovery, investors, importer, goodwill etc. will be increased.

5.2 SWOT ANALYSIS:

Strength:

Largest commercial bank in Bangladesh.

Widely recognized and strong brand name.

Agent of Bangladesh bank.

Qualified and experienced workforce.

Strong liquidity and financial condition.

Strong networks all over in Bangladesh.

Weakness:

Huge amount of bad/debt loan.

Lack motivation of workers.

Service is not up to the mark.

Online banking is not strong.

Absence of teamwork.

Weak branch controlling and monitoring system.

Opportunity:

Investment potentiality in Bangladesh.

Increasing demand of customer finance.

Enormous opportunity in foreign remittance section.

By implementing e-commerce and online banking remarkable

opportunities are created.

Threats:

  •   High standard Commercial/Foreign bank as well as private bank.
  •   Illegal interference of CBA in banking activities.
  •   Highly qualified and experienced bankers leave the bank a very high percentage.
  •   Cannot take proper action against bad debtor due to political interference.
  •   Increasing percentage of shifting customer loyalty.
  •   Low Interest rate compare to private /Foreign banks.

5.3 CONCLUSION:

Sonali bank is by far the biggest bank as well as financial organization of Bangladesh. It has some advantages and disadvantages too. Since it inception in the early 1972 after the independence of Bangladesh it has played a vital role towards the progress of the nation in almost all spheres. The ratio analysis and CAMEL ratings do not reflect good impression of the bank to anybody. But all these analysis do not actually show the true story of the bank. The bank is still not facing losses year after year. But there are some problems with the bank’s performance. Poor government policies regarding financial organizations, poor credit culture in our country and lack of vision by top management, interference of CBA in all banking activities etc. is giving raise to the problems of the bank day after day. Recently, the government has appointed foreign management who would work independently and by taking appropriate measures will try to improve things. The decision is still refuted by many and the results are yet to be proved in near future. So, for the time being we may hope that the private body of top management might take appropriate measures regarding the problems identified and discussed so far and thereby eliminating the problems to take the bank to a more profitable and good service rendering organization to the people of the government republic of Bangladesh.

Some More Parts-

Remittance Management System(RMS) of Sonali Bank Limited (Part-1)

Remittance Management System(RMS) of Sonali Bank Limited (Part-2)

Remittance Management System(RMS) of Sonali Bank Limited (Part-3)