Ch1.doc

Chapter One

Introduction

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1.1Overview of the Organization

The Royal bank of Scotland (RBS) is one of the world's leading financial services providers and

one of the oldest banks in the United Kingdom (UK). Following the takeover of National

Westminster Bank in 2000, the RBS Group has continued to grow its business around the Globe,

in addition to its strong presence in UK, it has offices in Europe, the United States of America

and in many other countries of Asia. By market capitalization at the end of 2002, it was the

second largest Bank in Europe and the fifth largest Bank in the world.

In 1727, RBS was founded in Edinburgh (UK), by the Royal Charter. It opened its first branch in

Glasgow in 1783 and developed large network offices throughout the Scotland. During the

nineteenth century, in 1874, it opened its branch office in London and from the 1920s onwards

the Bank developed, by acquisition, a major presence throughout England. By 1970, following

the Royal Bank's merger with the Edinburgh-based National Commercial Bank of Scotland,

comprising the former National Bank of Scotland (established 1825) and Commercial Bank of

Scotland (established 1810), it enjoyed over 40 % of Scotland’s banking business. Under the

Williams & Glyn’s Bank banner, it also boosted a large and growing presence in Wales also. In

1985 Williams & Glyn’s merged fully with the Group's Scottish Clearing Bank, thereafter traded

throughout Britain as a single entity, the Royal Bank of Scotland.

During the 1980s the group diversified, setting up an innovative car insurance company. In early

1990s the Royal Bank of Scotland re-focused on its core business of retail banking. During 2000

the Royal Bank of Scotland acquired National Westminster Bank which was the biggest takeover

in the history of British Banking. In 2008 RBS took over Al-jameen bank of Netherland, &

Amsterdam Rotterdam (ABN AMRO), which was considered as one of the Number One Bank.

1.2 Brief History of the OrganizationThe Royal Bank of Scotland Group has grown from small beginnings nearly 300 years ago to

become the second largest financial services group by profit, in the world. With an AA credit

rating, RBS group has more than 40 million customers worldwide, operating profit in 2007 was

₤10.3 Billion, and total assets, as at 31 December 2007, of GBP 1,900.5 Billion. Our brands

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operate around the globe and down the street to provide banking services for individuals

businesses and institutions. With great history, RBS remain committed further innovation and

services - in business and through our many sponsorship activities.

Asia Pacific

The Royal Bank of Scotland Group is now one of the top five banks in the Asia Pacific Region

for corporate and institutional customers, and retains a strategic partnership with Bank of China.

The Bank also provides wealth management services across the region through RBS Coutts.

Europe

Having the largest branch network in United Kingdom and providing market-leadership in

wealth management, consumer finance, insurance and corporate banking solutions to millions of

its customers, the RBS Group has a grown presence across the rest of Europe.

North America

The Royal Bank of Scotland Group is now one of the 10 top banking groups in the US, and

established its name across the North America. The Citizens Bank has retail business branches in

13 States of U.S.A, while RBS Global Banking & Markets works with 80 Pct of the Fortune 100

Companies. The RBS role holder will be responsible for leading and managing projects across a

range of strategic work streams to ensure that the Bank attracts, retain and engages the best

people and delivers value to customers, employees and shareholders. The Key projects focus on

Policy and Proposition, Employee Relations, Employee Engagement, Business Change, Health,

Safety and Wellbeing and Employment Law. Effective from August, 2008 in Pakistan, ABN

AMRO bank has been re-named as the Royal Bank of Scotland Limited as part of global re-

branding strategy of Royal Bank of Scotland post acquisition ABN AMRO bank in October

2007. The re-branding process proceeded seamlessly and efficiently from customer’s point of

view as well as Global RBS Standards.

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VisionTo be a leader in chosen financial markets whilst demonstrating commitments to deliver for its

customers

MissionTo rebuild Strength and standalone value of Royal Bank of Scotland Group.

Corporate Values

1. Customer Focused

RBS Group is unrelenting in focus on customer relationships and customers’ success.

2. Team Oriented

RBS employees respect and depend on each other for success by working as collaborative teams.

3. Performance Driven

RBS Group has a burning desire to succeed. Result matters “To make it happen”.

4. Entrepreneurial

RBS thrive on being innovative in its approach to big Business.

1.3 Products and ServicesRetail Consumer/ SME and Commercial Banking

RBS Pakistan offers products in Retail Consumers, SME and Commercial like deposits, saving

and currents accounts, cash and Cheques deposit, and loan facilities in project financing, Trade

finance and Global money matters. Not only this, but it is also offering products as balance

transfer facility (BTF) which in banking terminology is one stop payment shop, 24 hour nonstop

banking centre, relationship card through which customer can access to over 1000 ATMs, life

insurance protection, e-statements through which you can receive your BTF via email, drop box

facility- the convenience of dropping of your payments at any of the drop boxes placed outside

RBS, Pakistan state oil (PSO) and shell Oil Co..

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The bank is offering the following products and services to the customers:

1. Balance transfer facility (BTF)

2. Deposit facility

3. Locker facility

4. Credit cards

5. ATM facility

6. Treasure plus

7. Insurance benefits

8. Online banking

9. Non stop banking service

1. Balance Transfer Facility (BTF)

RBS has introduced BTF which is often called one stop payment shop that take care of all your

financial needs. BTF is most convenient and flexible, economical and easy-to-use loan facility

designed to suit your needs and give you the power to control the finances. It brings you the

variety of features that provide you the spending convenience you need. In BTF there are no

lines or limit of credit, generally you can get the loan between PRS. 50,000 to PRS.500, 000/-.

But in BTF ‘there is no matter, what your limit’, you are charged on the amount of money you

used and not on the whole amount assigned to you.

2. Deposit Facility

The following types of deposit accounts are being offered by RBS to various categories of

people:

Current account --------------------Sahulat account

Savings account--------------------Anchor account

Checking account------------------Access account

Term deposit account-------------Value term

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3. Locker Facility

RBS offers locker facility to its customer in order to avoid sleepless nights, and the prize bonds

tucked in the bottom drawer make you feel tense, it is time to discover peace of mind.

The lockers at RBS are safe, convenient and private. As a customer, you can enjoy personalized

service and operate your locker in a friendly and pleasant environment.

4. Credit Cards

Credit Card is the safest mode of using plastic money. It is used repeatedly to borrow money or

buy products and services on credit. RBS Credit cards are issued to its customers who maintain

saving and loan accounts for customer’s requirement at retail stores, and other businesses.

RBS is offering three kinds of credit cards

Future perfect master card

RBS air blue master card

RBS U-fone credit card

5. ATM Facility

Through RBS ATM network customer has access to his money 24 hours a day, 7 days a week.

This facility gives you the flexibility of withdrawal of money from your account any time.

Any customer can make one to five transactions in a single day, by withdrawing 20,000/- of

amount in a single transaction, so the customer can withdraw 100,000/- in a day. If some one

wants more than 100,000 then he has to use his Cheques book.

6. Online Banking

RBS is offering Online Banking facility to its customers through the country wide network of

branches. If the customer is interested in sending the money in any other branch of RBS, then

he / she can use this facility. Customers can use ATMs or Banking Counters of any branch for

day to day banking needs, irrespective of branch where they maintain their accounts in RBS. It is

fast and secure access to any of your private accounts via internet.

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7. Insurance Plans of RBS

RBS is offering various types of insurance plans. RBS product menu spans across various lines

of insurance and offers combination of life and non-life insurance plans which are made-to- fit

your personal needs. RBS has insurance plans for young professionals, married, retired people.

This insurance plan provides cover on the following risks

Robbery

Fire

Natural calamity

Vandalism

Terrorism

The above mentioned are applicable on lockers. Only events that take place in the locker area are

covered under this scheme.

8. Treasure Plus:

Treasure plus is such type of insurance where RBS also provide insured loan for children’s

education. It is very simple; the customer can select the premium amount (in multiples of

12,000) and term of the plan, by selecting minimum annual premium amount by customers from

Rs. 120,000 to Rs. 24 million

The customer has flexibility of paying the amount on a monthly, quarterly, half yearly or annual

basis. When child reaches the college going age, then customer will receive a lump sum amount

to meet his / her education needs. In addition to the above, treasure plus also offers a unique

school fee continuation benefit. This option would ensure continuity of dreams to give to child

the best education in case of your untimely death.

9. Non-Stop Banking (NSBC):

The customers can make payments for their credit card, order a demand draft, mark caution for

stop payment of cheque or pay utility bills (i.e. telephone, gas and mobile bills etc.). In this way

the customer can do almost all kind of banking transactions over the phone/ATM machine.

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1.4 Organizational Structure of RBS (organogram)

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1.5 Trade Processing Units - Lahore & Karachi

The Royal Bank of Scotland Ltd in Pakistan has various Departments in Lahore, for writing my

Internship report; I have selected the Trade Processing Unit. It is based on RBS Manufacturing –

The Royal Bank of Scotland Ltd., Trade processing Unit is situated at DHA - Walton Road

Lahore.

The Royal bank of Scotland Ltd. Group is offering various types of Trade Services domestically

(in Pakistan) and International level. In Pakistan it has deep roots of Trade Business i.e. Imports

and Exports in Pakistan and across the world. RBS Trade Finance Services are dealt especially

with Corporate and SME Commercial & Consumer Clients.

Mr. Tauqeer Masud - Country Head who leads the team efficiently and monitor Trade finance

activities. He is stationed at The Royal Bank of Scotland at Walton Lahore. The core team

members are as under:-

1) Mr. Sami-ur-din Khan – Head of Trade Operation.

2) Ms. Ambreen Raza, who looks after the affairs of Export Re-finance of Corporate Clients

and SME Commercial Exporters.

3) Mr. Mahbub Mirza, who looks after the affairs of Import letter of Credit for Corporate

and SME Commercial & Consumer Clients.

4) Mr. Muzammil-ur-Rehamn - MIS Quality Head offering his Trade Finance Services.

5) Ms. Tanya Adnan who is the Regional South Head.

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The Royal Bank of Scotland Ltd, Trade Processing Unit is utilizing different applications for

Management Information Systems in Pakistan & across the world. Details are as under:-

TASK

Score

TCSS

TRS

BTR

After obtaining approval for my report writing from Allama Iqbal Open University, I have

focused on the TASK Application Information System which is TRADE APPLICATION

SYSTEM KERNEL.

TASK system is used for executing trade finance transactions. This multi-purpose system has

interfaces for all trade products, which is also used for Pre-audits / Sundry, Nostro investigation

and reconciliation.

Annex-B

This Information System has a key Role for completing the input and output Trade Operations

tasks at different levels.

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While writing my Internship report, It is great an opportunity for me as I have discussed with

among those Trade key staff members, whose have much experience in their departments. I am

also thankful to Allama Iqbal Open University, who provided me this opportunity, to share

my knowledge with RBS Trade Operation Professionals.

Mission Statement:-

In order to provide the “BEST” Trade services to our valued customers and to strengthen the

relationships by providing the right solutions that combine our technology and expertise.

Our goal is to have a customer loyalty, controlled operations and employee’s satisfaction. In

doing so, we strive for the highest level of integrity, competence, efficiency and transparency.

Be Accessible, Offer Solutions, and Build Relationships and keep challenging our own

standards.

1.6 Trade Operations Organizational Chart (Annex-C)

Trade Operations organizational chart is below mentioned.

The Trade processing Unit has further three sections as Import, Export, and Refinance. The

following chart indicates these sections, where Mr. Sami Uddin Khan is supervising these

sections of Trade Processing Unit.

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While writing my Internship Report, I discussed with Sami Ud-din Khan AVP- as a Central

Trade Head, who introduces me various (Team Leaders) key staff of different Sections of Trade

Processing unit. These staff members have played an important role in Trade Automation.

1.7 Introduction to the MIS Department (Organogram)

RBS- MIS department team played a major role in developing Bank Applications, which fulfills

the today financial banking requirements. Application development organizational chart

mentioned as under:-.

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RBS- MIS department consist of following Team key members.

Applications Developer

Software Engineer

Systems Analyst

Systems Developer

Software Designer

Software Architect

Software Developer

Software Test Specialist

Software Performance Analyst

User Experience Professional

Technical Solution Manager

Applications developer: His Job description and activities

Applications developer translates software requirements into concise and robust programming

code. He is specialized in a specific development environment, e.g. Computer Banking

Applications and has in-depth knowledge of a few relevant computer languages. In RBS

Application developer role usually involves writing specifications and designing, building,

testing, implementing and sometimes supporting applications using programming languages and

development tools.

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Application developer’s activities are following.

Establishing a detailed program specification after through discussion with clients.

Clarifying precisely what actions of the program is intended to perform.

Breaking down program specification into simplest elements and translating this logic

into a programming language.

Devising possible solutions for predicting problems and evaluating other options.

Working as part of a team, this may be established purely for a particular project, to write

a specific section of the program.

Combination of all elements of the program designed and then testing it.

Testing a sample of data-set in order to check that output from the program works as

intended.

Reacting to the problems and necessary correction in the program.

Installation of the program and conducting final test.

Evaluating the program's effectiveness.

Increasing program operating efficiency and adapting to new requirements, as necessary.

Conducting user acceptance testing to ensure the program can be used easily, quickly and

accurately.

Writing a detailed documentation as guidelines of the operation program for users and

computer operators.

Consulting Manuals, periodicals and technical reports to learn the new ways to develop

programs and maintain existing skills and knowledge.

Updating, repairing, modifying and expanding existing software and generic Banking

applications.

Software Engineer: Job description and activities

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In the RBS software engineer is responsible for the design and implementation of a variety of

software solutions. They might be involved in the design and testing of anything from computers

banking and business applications, to operating systems and advanced software for the control of

highly technical hardware and equipment. Once the system had been fully designed software

engineers then test, debug, and maintain the systems.

In the RBS organization, software engineers can become either systems or applications

specialists.

In RBS Software Engineers activities are following.

Analyzing user requirements.

Researching, designing and writing new software programs.

Testing new programs and fault finding.

Evaluating the software and systems that make computers and hardware work.

Developing existing programs by analyzing and identifying areas for modification.

Integrating existing software products and getting incompatible platforms to work

together.

Investigating new technologies.

Creating technical specifications and test plans.

Working with computer coding languages.

Writing operational documentation with technical authors.

Maintaining systems by monitoring and correcting software defects.

Working closely with other staff, such as project managers, graphic artists, designers,

developers, systems analysts, and sales and marketing professionals.

Consulting clients/colleagues concerning the maintenance and performance of software

systems and asking questions to obtain information clarify details and implement

information.

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Continually updating technical knowledge and skills by attending in-house and/or

external courses, reading manuals and accessing new applications.

Systems analyst: Job description and activities

In RBS a systems analyst designs new IT banking application solutions to improve business

efficiency and productivity. The work might be for an external client or an internal client

(A department is within the RBS Group). Working closely with the Applications users needs,

analysts examine existing business models and flows of data, discuss their findings with the

upper management, and design appropriate improved banking applications.

In RBS System Analyst activities are following.

Extensively Liaison with external or internal clients.

Analyzing clients' existing systems.

Translating client requirements into highly specified project briefings.

Identifying options for potential solutions and assessing them for both technical and

business, suitability.

Creating logical and innovative solutions to complex problems.

Drawing up specific proposals for modified or replacement systems.

Producing project feasibility reports.

Presenting proposals to clients.

Working closely with developers and a variety of end users to ensure technical

compatibility and user satisfaction.

Ensuring that budgets are adhered to and deadlines met.

Drawing up a testing schedule for complete system.

Overseeing the implementation of a new system.

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Planning and working flexibly to a deadline.

Writing User Manuals.

Providing Training to Users of a new System.

Keeping up to date with technical and banking sector developments.

Systems developer: Job description and activities

In RBS, the system developer role also covers writing diagnostic programs and designing and

writing code for operating systems and software to ensure that they function more efficiently.

When required, system developer makes recommendations for future developments to software

or operating systems. Systems developers may also develop systems in a response to technical

specifications supplied by an IT analyst. This may require integrating off-the-shelf software

packages into the existing systems.

In RBS system developer activities are following.

Consultation with colleagues or Users with a view to writing or modifying current

operating systems.

Evaluating and implementing ways to incorporate existing or new technologies.

Observing, testing, diagnosing and resolving faults in the software.

Writing and testing code and then refining and rewriting as necessary.

Writing systems to control the scheduling of jobs on a mainframe computer or to control

the access allowed to users or remote systems.

Providing written documentation for users, perhaps in conjunction with a technical

author.

Working with other IT specialists both internally and externally.

Undertaking short and longer-term project work.

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Software Designer

 Software designer role in RBS to translate software architecture documentation or requirements

into design specifications, using the appropriate tools and techniques.

In RBS System Developer Activities are as under:-

Design the components of Applications and provide the functions identified by the requirements

or architectural solution. Thorough technical knowledge is required of the software design

processes, best practices as well as a commitment to design consistency for the banking

application solutions.

Software Architect

 In the RBS software Architect have key role to define the product/solution architecture and

describe how elements of the technologies interoperate in the solution/product architecture.

In RBS Software Architect activities are following.

Define the product/solution roadmap in line with banking strategy. Analyze and anticipate trends

in the market, architecture of the Bank. Must demonstrate a deep knowledge of leading-edge

products/technologies and Banks. He also keeps the development community up-to-date about

standards bodies and technologies that may be employed to create solutions/ banking

applications.

Software Test Specialist

The role in RBS to execute the tasks required to fully test a product/system, to ensure it functions

according to the specifications and Banking customer requirements.

In RBS Software Architect activities are following:-

Conduct the testing activities on all aspects of the product/system, including component,

performance, system, regression, and service. he also need to demonstrate knowledge of the

domain that he is responsible for testing as well as the customer environment, testing

methodologies, tools and techniques. Set up testing environments, design and plan testing

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activity, develop test cases/scenarios/use cases, and/or execute required testing. RBS Team also

investigates problems uncovered during testing, recreating those problems as appropriate and

executing fix validations. They provide feedback on usability, serviceability and documentation

and report status to the appropriate audience.

Software Performance Analyst

Employees in this role work throughout a product life cycle. They work with product planners

and owners to establish measureable performance goals which meet market requirements.

In RBS Software Performance Analyst activities are following.

Design and implement workloads reflecting actual Users usage patterns. He also request

measurements and perform analysis to verify that the product's performance goals are met.

He work closely with development on the design and implementation enhancements and make

tuning recommendations to improve software performance. In addition, he develops and

provides capacity planning and investigation guidance and tools for Applications Support.

User Experience Professional

 In the RBS role experience professional possess the skills needed to design, develop, evaluate

and deliver the user experience for software and hardware products.

In RBS User Experience Professional activities are following.

Enhance the users' product experience by meeting their business needs and goals while

minimizing the potential for Applications errors.

Manage a variety of user interfaces including product packaging, websites, and other user’s

collateral. This includes tasks from across the product life-cycle, from initial product

familiarization through to product support and upgrade.

Technical Solution Manager

 This role is responsible for the development the banking applications and technical solutions

directly to bank users.

In RBS Technical Solution Manager Activities are following.

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Anticipate, develop and define innovative services solutions which match the user's tactical and

strategic requirements.

Lead Application development teams of subject-matter experts in using a combination of

offerings, services, assets, hardware, and software to meet client business requirements.

1.8 TASK Management Information System MAP

(Organogram)

The Royal Bank of Scotland TASK Management Information System MAP is following.

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