Bank

1.0 ORGANIZATIONAL DESCRIPTION 1.1

Introduction

BRAC BANK Limited, one of the latest generation of commercial banks which started its journey on the 4th of July 2001. BRAC Bank will promote broad-based participation in the Bangladesh economy through the provision of high quality banking services. BRAC Bank will do this by increasing access to economic opportunities for all individuals and business in Bangladesh with a special focus on currently under-served enterprises and households across the rural – urban spectrum. BRAC Bank believes that the pursuit of profit and developmental goals is mutually reinforcing. Increasing the ability of under – served individuals and enterprises to build their asset base and access market opportunities will increase the economic well being for all Bangladeshis at the same time, this will contribute significantly to the profitability of the Bank. BRAC Bank intends to set standards as the Market leader in Bangladesh. It will demonstrate that a locally owned institution can provide efficient, friendly and Modern full- service banking on a profitable basis. It will produce earnings and pay out dividends that can support the activities of BRAC, the Bank’s major shareholder. Development and poverty alleviation on a countrywide basis needs mass production, mass consumption and mass financing. BRAC Bank goal is to provide mass financing to enable mass production and mass consumption, and thereby contribute to the development of Bangladesh. The Bank’s goals are thus aligned with those of BRAC. 1.2

Company’s Vision

BRAC Bank will be a unique organization in Bangladesh. It will be a knowledgebased organization where the BRAC Bank professionals will learn continuously from their customers and colleagues worldwide to add value. They will work as a team, stretch themselves, innovate and break barriers to serve customers and create customer loyalty through a value chain of responsive and professional service delivery. Continuous improvement, problem solution, excellence in service, business prudence, efficiency and adding value will be the operative words of the organization. BRAC Bank will serve its customers with respect and will work very hard to instill a strong customer service culture throughout the bank. It will treat its employees with dignity and will build a company of highly qualified professionals who have integrity and believe in the Bank’s vision and who are committed to its success. BRAC Bank will be a socially responsible institution that will not lend to businesses that have a detrimental impaction the environment and people. 1.3 Company’s Mission BRAC Bank will adhere to highly professional and ethical business principles and internationally acceptable banking and accounting standards. Every BRAC Bank professional will need first of all a commitment to excellence in all that he/she does, a keen desire for success, a determination to excel and a drive to be the best. They will individually and jointly learn continuously from customers and professional colleagues around the globe to improve the way they do business so that they are the best. They will walk that extra mile with enthusiasm and empathy to serve our customers and to solve problems together so that our customers succeed in their business and remain loyal to our Bank. They will set up goals for ourselves and then exceed the goals that they set up. They shall not accept failure. 1.4 Company’s Goal

BRAC Bank will be the absolute market leader in the number of loans given to small and medium sized enterprises through out Bangladesh. It will be a world – class organization in terms of service quality and establishing relationships that help its customers to develop and grow successfully. It will be the Bank of choice both for its employees and its customers, the model bank in this part of the world.

1.5 BRAC’s Long Term Strategy Summed up in a single sentence, our long-term strategy is to go where the market is. The SME market in Bangladesh is large. The report produced by the Shore Bank team, (Ronald Grzywinsky, Mary Houghton and Lynn Pikholz) and the independent consultant, Kaiser Zaman, indicates that the market size would be over hundreds of billions of takas. They quote: “As a result of the achievements of the micro-credit providers, Bangladesh now has an hour glass shaped banking market in which credit and other limited financial services are valuable to both very large and very large and very small businesses and very wealthy and very poor individuals. While there is well – known informal system that provides credit to businesses, virtually nothing is available from either banks or micro finance provider to the million the middle – businesses and individual- who are severely constrained in their ability to produce and save for lack of access to financial resources and services. Until modern, competitive financial services are readily available – including credit in amounts, terms and conditions that small can access, Bangladesh will not be able to create the large middle class that is a prerequisite to social stability. 1.6 Company’s Effort To reach the above goals through fully motivated, committed and dedicated work force. 1.7 Company’s Overall Performance BRAC Bank is a commercial scheduled bank extending full range of banking facilities as per the directives of Bangladesh Bank. It intends to set standards as the absolute market leader in Bangladesh by providing efficient, friendly and modern fully automated on-line service on a profitable basis. Since inception, it has introduced fully integrated online banning service to provide all kinds of banking facilities from any of its conveniently located branches. BRAC Banks envisages providing mass financing by increasing access to economic opportunities s for all individuals and business in Bangladesh with a special focus on currently under-served enterprise across the rural urban spectrum. BRAC Bank is surviving in the large banking arena through its unique and competitive products and it is the only local bank providing 100% integrated online banking services. BRAC Bank Limited consists of four major business divisions namely Corporate Banking Division, Retail Banking Division, Small and Medium Enterprise (SME) and Foreign Trade & Treasury. Corporate Division provides full range of commercial banking products and services to any potential corporate clients including multinationals, large or medium local corporate, NGOs, institutional bodies. Retail Division offers a wide array of lucrative and competitive banking products to the individual customers of the bank. Currently there are six lending products

and a number of other attractive new products will be launched shortly. It also offers different types of term deposit scheme and attractive STD & Savings deposit schemes giving interest on daily balance. As part of the total banking solution it has introduced an innovative and one of its kind Remittance Service under the style and name “Secured & Easy Remittance Service” (SERS). The aim of the program is to introduce easy and secured remittance service whereby people will be comfortable and secured in remitting funds without hassle and delay. Using the countrywide network of BRAC comprising more than 1100 field offices the SRS will ensure secured and only 24 hour lead time delivery of remittance anywhere in Bangladesh. SME is an additional and specialized horizon of the bank which serves the bank’s special focus in promoting broad based participation by catering to the small and medium entrepreneur. The network of SME has already been established through out Bangladesh. BRAC Bank is gradually growing up to establish itself in the Banking arena of Bangladesh to be the market leader in terms of service quality and a trusted partner in the development of Bangladesh. 1.8 Target Market List of the target markets are given below Pharmaceuticals, toiletries, chemicals and pesticides. Power Generation, oil exploration, industrial and household gases (Liquid Petroleum Gases etc.) Edible Oil Bulk Trading – Essential Commodities, Industrial Raw Materials, Agricultural Inputs. Cement Garments, Textiles and related backward linkages industries including spinning, knitting, yarn, garments accessories etc. Food Processing and Beverage Industries Cable and Cable wire Information Technology Leasing Companies / Non Banking Financial Institutions Health Service Industry Non Governmental Organization (N.G.O) and other International Development Organizations Telecommunication Ship breaking, Re rolling, Corrugated Iron (CI), Sheet Manufacturing and Related Business. Airlines, Shipping Lines, Freight Forwarding , Testing and inspection agencies 1.9 IT Infrastructure BRAC Bank Limited (BBL) is currently running nationwide a truly online and fully automated banking system. Our system permits all customers to do transactions anywhere in the Country. BBL is one of the most IT savvy banks in Bangladesh. Right from its inception as an operational bank in 2001, it has particularly emphasized upon IT as its key partner in progress, business development, in expansion, and in maintaining a cutting edge advantage over competition. The IT resources of BRAC Bank are very challenge driven and are equipped to meet many major feats given to them. BBL plans to continue as a major IT driven bank in the years to come. Special Features: • Any Branch Banking. • All Branches are computerized. • 99% banks work is automated using latest technology.

• •

BRAC Bank is a member of SWIFT community. Inter BRAC Branches are connected via optical fiber backbone network.

2.0 PREPERATION OF ASSESMENT In assessment part, they evaluate the organization and try to realize the problem of the organization to achieve our assessment goal. 2.1 Objectives of Assessment They, the team members set up three goals for the • Understanding how the BRAC Bank doing their • Recognition and prioritization the problems • enroll organizational leaders in the change Manager Agreement

assessment. These are: day to day managerial works. of the existing system. process and obtaining Senior

2.2 Philosophy of Assessment To perform a good assessment, some special concerns were kept in our mind. They are: • They used a process model as a basis of the assessment to understand the organization. • They maintained confidentiality in times of assessment which permitted us to talk to the people at all levels of the organization. • The senior management set the organization’s priorities. They involved with us in the assessment and follow up action plans. • They showed an attitude of respect for the views of the people in the organization being assessed. • At last they focused on action. During preparation phases, senior manager became committed to the process, agreed to participate personally and committed to take action on the resulting recommendations. On site assessment period, they used several techniques and then a recommendation is presented to the managers. After this, plan is assembled and implemented. 2.3 Team Description To conduct an assessment, we form a team of five members. Most of us are in senior standing. Our group members are from different backgrounds. Three of us are from Finance major and rest of two is from Marketing major. As we for, our group from different majors, we can share our knowledge among us and this helped us a lot during assessment process. 2.4 Working as a team After forming the team, all of us agreed to participate fully during the on-site observation and wrap up meetings. Members were present on time in every meeting. The training program has the following steps: • Assessment schedule and objectives are outlined. • Assessment principles are reviewed together with the process model which is used as the assessment framework. • Assessment guideline is discussed. • On-site planning is done and rule defining is completed 2.5 Management Commitment During research period, senior managers became committed to the process, agreed to participate personally and committed to take action on the resulting proposal. On

site assessment period, they used several techniques and then a recommendation is submitted to the managers. After this, plan is assembled and implemented. 3.0 ASSESMENT TECHNIQUES During assessment conducting period, they used the fact-finding techniques. They were, • Documentation Research • Observation • Questionnaire • In depth interview of managers • Interview of the clients 3.1 Document Review In assessment, they first review the documents of BRAC bank. By reviewing the documents, they got a brief idea about the organization. Some important documents are listed below: 3.1.1 Organizational Structure

3.1.2 Services offered by BRAC bank 3.1.2.1 Service objective The BRAC bank would try to serve the financial market of the country with the following objectives: To develop and sustain mutually beneficial customer relationships based on high quality service and innovative products. To develop and sustain mutually beneficial customer relationships based on high quality service and innovative products. To pursue a management style that contributes to the well-being and development of a fully responsible and accountable workforce under a high corporate standard and business ethics. To provide and deliver services in a cost-effective manner 3.1.2.2 Corporate banking: Term-Financing Loans are grouped under term finance depending on the term of loan. It is generally categorized under Short term and Long term. Available in Bangladeshi Taka term finance is both fund base and non fund based. Fund based term finance is usually for capital expenditure, acquisition of fixed assets for expanding a business or towards starting a new business. Non fund based financing is in the form of deferred payment guarantee for acquisition of fixed assets for starting or expanding a business or industrial units. Long Term Financing The BRAC Bank has a vision and mission to improve the financial sector of Bangladesh i.e. economic condition of Bangladesh by providing effective and innovative banking and financial product in financial market. However, in every economy of the world financial sector is highly regulated sector. Project loan to any industry under the rules & regulations of Bangladesh Bank/G.O.B. Term Loan to any Industry for import of Capital Machinery under the rules &

regulations of Bangladesh Bank/G.O.B. Equity Participation to any Financial Institutions/Companies under the rules & regulations of Bangladesh Bank/G.O.B. Term Loan under Syndication/Consortium arrangement under the rules & regulations of Bangladesh Bank/G.O.B. Equity Entrepreneurship Fund (EEF) to any company under the rules & regulations of Bangladesh Bank/G.O.B. Commercial House Building Loan in urban area to any developer/individual/company under the rules & regulations of Bangladesh Bank/G.O.B. Transport Loan to any company/individual under the rules & regulations of Bangladesh Bank/G.O.B. Credit Line Facilities as Term Loan to any Leasing Companies under the rules & regulations of Bangladesh Bank/G.O.B. Short term Finance Short term Loans are for short term business exigencies and requirement at attractive interest rates. Usually post import finance such as LATR is provided under short term loans. 3.1.2.3 SME Banking Apurbo loan Great Opportunity to expand business • Simple Loan processing for expanding business • Quick disbursement • Disbursement in two or three installments • Flexible monthly repayment plan Who can apply: • Minimum 3 years business activities • valid trade license Anonno loan This is a small scale loan that extends to relatively smaller business units in trading, manufacturing, agriculture, service, non-farm activities, agro-based industries etc. to aid the purchase of fixed assets, inventory and on receivables. Features: Quick, quality banking anywhere in the country Customer Relation Officers guide step by step till disbursement Loan amount ranges from 2 lacs to 8 lacs Women entrepreneurs are also encouraged to apply Flexible repayment method Who can apply? Businesses at least 1 year in operation Valid Trade License Two Personal Guarantees Profit making concern Pathsala loan Easy loan facility for educational Institution Loan upto BDT 10 lacs without any security Maximum loan amount upto BDT 30 lacs

Flexible monthly repayment plan Quick disbursement

3.1.2.4 Consumer banking DPS: The Deposit Premium Scheme is a special savings scheme that allows saving in line with income on a monthly basis and getting a sizeable amount at maturity. Feature: • Monthly installments can be as low as Tk. 500 or any multiples of it. • Choose any day as installment date. • Receive a Savings a/c with a personalized check book. • No standing in long lines to deposit money. Just deposit installments in savings a/c and they will automatically transfer it on the due dates. • Take loans reaching 90% of deposited amount. Interest Rate: Tenor 4 7 11 14

8.50 9.00 9.50 9.75

Rate of Interest

The Current Account: The Current Account is the normal account that they have all become very familiar with. They have made sure that our Current Account offers all the features that they would expect from any other major bank. Yet they also offer a number of other benefits that they would only expect from an organization as innovative as BRAC Bank Limited.Current account facility is available to: Individuals (aged 18 years and above) and Business entities Benefits: Consumer will receive the following benefits from Savings Account: No No No No

restriction on the number of withdrawals. restriction on the amount or size if a withdrawal. forfeiture rules or hidden cuts. requirement for notices to be given before making a withdrawal.

Fixed Deposit Receipt: BRAC Bank offers the flexibility and convenience of choosing Fixed Deposit Term from any period between 1 month and 3 years. BRAC Bank FDR also gives the most competitive return on them r investment. The Rates are as follows: FDRs: Principal Amount & Rate of Interest Tenor 50 K - 2499 K 2500 K - 9999 K 10000 K - 49999 K 50000 K 99999 K 100000 K & + 1 month 7.75% 8.00% 8.00% 8.00% 8.00% 3 months 7.75% 8.00% 8.00% 8.00% 8.00% 6 months 8.00% 8.00% 8.00% 8.00% 8.00% 12 months 8.00% 8.00% 8.25% 8.50% 8.50% 24 months 8.00% 8.00% 8.25% 8.25% 8.25% 36 months 8.00% 8.00% 8.25% 8.25% ABIRAM: Principal Amount & Rate of Interest Tenor 100K – 999 K 1000K – 4999K 5000K – 9999 K 10,000 K & +

12 months 24 months 36 months

8.00% 8.00% 8.00%

8.00% 8.00% 8.00%

8.25% 8.25% 8.25%

8.25% 8.25% 8.25%

ABIRAM PLUS: Principal Amount & Rate of Interest Tenor 1000 K - 4999 K 5000K – 9999K 10000K - 99999K 6 months 12 months 24 months

8.00% 8.00% 8.00%

8.00% 8.00% 8.00%

8.25% 8.25% 8.25%

100000 K & +

8.25% 8.25% 8.25%

ATM Service: With this ATM Card, consumer can now enjoy a range of value added services from BRAC bank’s fast expanding ATM network. ATMs are designed to ensure maximum convenience. Hope they will take advantage of these: 24 hour banking: • Draw cash up to Tk. 20,000 from they r account each day. • Enquire balance of they r account • Obtain statement of last nine transactions ATMs almost at door step: BRAC bank’s ATM network is expanding very fast. Apart from having them located at our branches, they will soon find them also in conveniently located places such as shopping complexes, super markets etc. Bill Payments made easy: Soon anyone will also be able to make payment of his/her regular bills such as mobile bill, electriBRAC bill and insurance premiums through his/her BRAC Bank Card. Credit card service: Loan upto 5 times against Credit Card limit • Any Purpose Loan • No Proof of income or security required • Loan in just 24 hours Just a credit card is good enough: Now, a credit card is all they need to get a loan from BRAC Bank. A one-year-old credit card with any institution makes they eligible for the loan. Features: Loan can be used for any reason from buying consumer goods, automobile to vacation expenses,. Just decide what they want to do and start planning for it! Customized loan offer: If they have a credit card with a minimum limit of Tk. 40,000 then the Credit Card Loan is for they. Credit Card Loan offers loan up to 5 times of their credit card limit. Flexible repayable plan: They can repay their Credit Card Loan in convenient Equated Monthly Installments (EMIs) over a period of 12, 24, 36 and 48 months. Minimum hassle: No guarantors or security needed. Minimum documentation and speedy clearance are added benefits. They just need to have the following: • Copy of credit card • Last 3 month's credit card statement • Proof of 1 year of credit card history 3.1.2.5 Other Services Priority Service Banking: Priority Service Banking offers tailor-made service to fit their unique business needs. These services allow them to manage their business finance and cash resources conveniently. Our Priority Banking includes the following special services.

Pick-up & Delivery Service Auto Fax Report Corporate Help Line Inward Remittance Information Express Payments FX & Money Market Info Nationwide Collection Services (NCS): In today's competitive market it is imperative that a company turns its receivables into funds it can actually use. BRAC Bank's Nationwide Collection Agreement (NCA) is designed to assist corporate with pan-Bangladesh collection requirements by providing faster funds availability in a cost effective manner and thus improving the company's liquidity, BRAC Bank offers a centralized system where a company can maintain a single concentration account with BRAC Bank for all countrywide collections. Extensive- Network Coverage Cheque Pickup One Account Concept Authentic Knowledge of They r Cash Flow Constant MIS Payment Transfer Services: BRAC Bank is proud to present Payment Transfer Services (PTS), a service for corporate clients, which offers bulk transfer (e.g. salary/suppliers payment in they r salary/vendor payment processing. PTS processes they r staff salary/vendor payment by downloading they r payment instructions from an Excel file. This can also be in the form of Floppy diskette or if they prefer they can even E-mail the Excel file to us. The service ensures that appropriate statement information is provided for all individual account credits (e.g. salary for the month of xxxx) in accounts statements. Product Comfort: Instant: They can arrange to process their specific instructions on the same day if the Diskette/ e-mail containing the information reach our concerned department before 12 p.m. Accurate: As the information will be downloaded directly from the Floppy Diskette, PTS eliminates manual entries and minimizes the possibilities of any errors. Value-date: Funds transferred through this service are immediately available at all our branches and can be withdrawn through cheques. All they need to do is send us the payment transfer instruction in an Excel File which will contain the following information. Full Account No Account Name Payment amount This Diskette should be accompanied by a written authorization. This combined network of BRAC Bank in Bangladesh places us in a unique position to support they r banking needs. Their branch network now covers Dhaka, Chittagong, and Sylhet, which are linked through on-line banking services enabling the consumer to operate they r account from any of our branches. 3.1.3 Different types of loan BRAC offer different types of consumer loan which are given below Auto Loan: They offer most customer-friendly car loan they could think of. Whether they want

to purchase brand new cars or reconditioned ones; this is the scheme for they .They can get the car of their choice by taking advantage of our customer-friendly car loan. Who can avail? All BRAC Bank account holders aged between 21 and 65 are eligible to apply. The loan can be paid back over a maximum of 4 years through equal monthly installments. Maximum Amount & Repayment Mode: It’s the highest loan amount available in the market, going as high as Tk. 5,000,000 in some cases. Take advantage of the low processing fees of just 1%; there is no need to pay hefty fees just to get they r loan approved. Security: Wide range of securities acceptable such as fixed deposits at BRAC Bank and other Banks, ICB unit certificates, wage earner bonds, employer’s guarantee and salary transfer. Interest Rate: Gain from one of the lowest interest rates (ranges between 13 and 17 percent), and on top of that take a break from repayment during the Eid months, if they wish.

Teachers Loan: Teacher’s can use this loan for a wide array of purposes ranging from a wedding or a dream holiday to the like of financing a business or surviving an emergency. The best part is that the loan might be in they r grasp within three days! Features • The loan amount stretches from Tk. 50,000 to Tk. 300,000. • There are flexible repayment terms extending. • It has the fastest processing time. • No Security required. Any teacher permanently employed at an educational institute for at least three years is eligible to loan up to 10 times their current monthly salary. Interest rates are 18%, and are calculated in a reducing balance method. They can pay back in equal monthly installments taking as much as 4 years. As mentioned above, no security is required. All they need to provide are the employer’s letter of introduction, the latest salary slip or 3 months bank statement, and a personal guarantee from the spouse or parents. Life Style Loan: Lifestyle loan is for the purchase of consumer durable items such as electronic goods, furniture, computers, music systems, communication machine and other household items. It is also meant for marriage, travel, house renovation and so on. Who can avail? All BRAC Bank account holders aged from 21 to 65. People from all income groups, whether salaried employees or self employed business-persons, are eligible to apply. Life skill Loan, however, is for the professional people of diverse kinds. Maximum Amount & Repayment Mode: Depending upon the intended purpose of the loan, the amount may vary from Tk 50,000 to even Tk 20 lacs. Loan is to be repaid by equal monthly installments (EMI) within a maximum of 4 years. And they finance 100% of the value of the item to be purchased. Security: A wide range of security is acceptable to the Bank. These are: Fixed Deposits at BRAC Bank and other Banks, ICB unit certificates, Wage Earner Bonds, Employer’s Guarantee, Salary transfer etc. The higher is the security value; the lower is the rate of interest. Interest Rate: It varies between 12% p.a. and 17% p.a. depending upon the size of the security.

Plus there is a 1% one-time loan-processing fee. Most importantly, interest is calculated at reducing balance method. Ask our sales persons about this, and they will be amazed to know how small the interest rate effectively becomes. Unsecured Personal Loan: A package specially designed for salaried employees. Take loan from us without any tangible security. Spend the money on any purpose of they r choice. Who can avail? All BRAC Bank account holders aged 21 to 65. They have to be: employees of multinational companies or local corporate bodies; also employees of midrange companies, govt. officials and self-employed business-persons are eligible to apply. Maximum Amount & Repayment Mode: Up to 8 times of they r gross salary or 5 times of they r gross monthly income (maximum Tk. 5 lacs) can be availed as loan. Loan to be repaid by equal monthly installments (EMI) within a maximum of 4 years. Security: As said before, no tangible security is needed. They need to provide the following papers only (varies from case to case): Letter of introduction from they r employer and salary certificates; or salary transfer letter; or assignment of provident fund; or in some cases, personal guarantees. Interest Rate: It varies from 17.5 to 18.5% p.a. depending upon the category of employment to be decided by the Bank. Plus there is a one time 15 loan-processing fee. Most importantly, interest is calculated at reducing balance method. Ask our sales persons about this, and they will be amazed to know how small the interest rate effectively becomes. Salary loan: Keep an extra 15 month's salary in they r pocket • Loan up to 15 times of salary • No security required • Loan in just 24 hours Features: 24 hours is all it takes to get BRAC Bank's Salary Loan. And they can take this for any purpose. From paying off bills to buying a car to even buying tickets for a dream holiday. No questions asked. Tailored Offer: If they earn a gross monthly salary of Tk. 10,000, Salary Loan could be applicants. They can take the loan up to 15 times of they r monthly salary and up to a maximum of Tk. 15 lac. Minimum fuss • No guarantors or security needed. All customer need to give are the following simple documents: • Last 3 month's bank statement • Last salary slip/Letter of introduction • Proof of identity • proof of residence • Proof of employment of minimum 2 years Flexible repayment plan: They can repay Salary Loan in convenient Equal Monthly Installments (EMIs) over a period of 12 months to 60 months. Overdraft Secured Loan: Special schemes that allow they to avail cash at nominal interest rates. They r security is kept untouched in Bank’s custody and … the value grows. Easy and friendly repayment options are available. Who can avail? All BRAC Bank account holders aged from 21 to 65. People from all income groups – salaried employees and self-employed business-persons-with security in their

possession are eligible to avail these facilities. Maximum Amount: Maximum amount can go up to Tk 5 crores. And they can avail the facilities in single or in joint names. They allow loans for up to even 100% of the value of their securities (conditions apply). Repayment Mode: In case it is an overdraft, they repay only interest at quarterly intervals. In case it is a Loan, they are allowed to choose between the quarterly repayment option and the monthly installment option.They allows repaying the way to chose. Security: A wide range of security is acceptable to the Bank. These are: Fixed Deposits at BRAC Bank and other Banks, ICB unit certificates and Wage Earner Development Bonds in special cases. Employer’s Guarantee can be the security. Interest Rate: It is only @ 2-3% spread p.a. plus there is a 0.5% facility-processing fee, which is negotiable. If it is monthly installment based repayment options that have chosen, interest will be calculated at a reducing balance method. Ask our sales persons about this, and will be amazed to know how small the interest rate effectively becomes. 3.1.4 Summary of Record Review As we are interested to about the loan collection system of BRAC Bank, so we gave importance in reviewing loan application form, loan approval processing form, loan approval procedure’s narrative and pictorial description, type of workflow and dataflow of loan department etc. Though the management level people were committed to help us, but the executives of loan department didn’t co-operate us that much and they were unwilling to show us problem related documents in details. So, we didn’t pressure them. We overcome this by interviewing them properly. 3.2 Observation Observation is one of the most effective data collection techniques for obtaining an understanding of the system. During observation phase we perform the following activity: a) We determine that what, where, when and how we will observe. b) Obtain permission from appropriate managers. c) Inform those who will be observed of the purpose of observation. b) We take notes during or immediately following the observation. e) Review observation notes with appropriate individuals. In times of observation we don’t interrupt the individuals at work, focus heavily on trivial activity. It is a time consuming procedure to observe all the people or user who are using the system and the type of their workflow. Our team visited just one time to their Gulshan branch and observed all sections where most of the loan activities take place. 3.3 Questionnaire Questionnaire is a special purpose document that allows us to collect information and opinions from respondents. It allows us to collect facts form a large number of people while maintaining uniform responses. When we prepare question we use both format that means we asked both free format and fixed format questions. Because of the time constraint, we didn’t get much more time to design a questionnaires format. 3.4 In depth interview This is the most common method that is used to understand a system and gather fact

about the procedures. This provides us the opportunity to collect information from individuals face to face. Interview can be conducted both in structured and unstructured way. When we conducted interview of the employees of loan support department, we emphasized on unstructured interview. To conduct an interview, we followed the following steps: a) We selected the interviewees. b) We prepared ourselves for the interview. c) And then we conducted the interview. Because of the time constraints, it is not possible to interview all the employees of loan Department of BRAC Bank. We interviewed only the manager of Gulshan branch and one executive of loan section of who deals most of the jobs of loan related activities of Gulshan branch. For the interview, we took appointment with the manager of and the executive of loan section and interviewed them in due time. We had arranged one interview with the manager and two interviews with the executive of loan section. We took notes from the responses. After review the responses, we went back to the bank for the second interview and asked questions. After conducting the second interview, we got a clear view of the loan system workflow. To obtain facts about the loan system of BRAC bank we use a sample interview guide which represents an agenda. One of the interview agenda is: INTERVIEW AGENDA INTERWIEWEE: Khwaja Shahriar, Manager of corporate banking DATE: Thursday, may 4, 2006 TIME: 12.30P.M. PLACE: Gulshan-2 branch. SUBJECT: Loan Department. 1-3 min. Open the interview. Introduced ourselves. Thank Mr. Khwaja Shahriar for the uses of his valuable time. State the purpose of the interview—to obtain an understanding of the existing loan system. 5 min.

What are the requirements for a customer to apply for a loan?

10 min. what are the steps that followed to sanction a loan after receiving all documents from the client? 2 min who are the individuals that perform task in the work flow of process? 3 min. May we have permission to talk to those individuals to learn specifically and how they perform their task in the loan support department? If yes: When would be the appointment time to meet with each of them? 1 min

Conclude the interview: Thanks Mr. Ahmed for his cooperation.

4.0 GENERAL DESCRIPTION OF THE PROBLEMATIC SYSTEM: Management of assets particularly the loan portfolio is the most vital function of the bank. Bank performance in terms of return to investments ultimately centered on how well a bank distributes its risk in its portfolios. Every bank has the separate credit department which deals in sanctioning, disbursements, monitoring and recovery of loans of various types.

When a client wants some loan from BRAC bank, client won’t get the loan instantly. He/she must have an account in BRAC Bank of at least six months old. If the client has such account, then he can apply for a loan and then depending on the criteria of loan, bank performs its verification. After verification, a proposal is made and sent it to the head office from the branch office. Then Head Office checks whether the client took loan from any other branches of BRAC Bank and whether the client is money defaulter or not. After this checking, Head Office sends the proposal to Bangladesh Bank for checking whether the client took loan from any other bank and whether the client is money defaulter in any other bank. After verification the request of BRAC Bank, Bangladesh Bank sends a report to the Head Office. Verification process in Bangladesh Bank takes more than one month. After receiving the report from Bangladesh Bank, Head office sends the report to Branch office. If every, verification remains in favor of the client, then BRAC Bank is ready to give loan to the client. So, we see that loan sanction process is a clumsy and very time consuming process. It is vital for the bank management is to monitor and supervise of existing loan as well as to give emphasis on the credit disbursement and by appropriate execute of this thing banks can overcome the loan default which is very common scenario in context of Bangladesh. In context of Bangladesh perspective the main reasons behind the loan default are political interference, management lobbing, non professional handling of credit disbursement and high interest rate. Bangladesh Bank’s effort to set the things on right track has met with limited success. The international standard of bank supervision needs to be introduced in phase by allowing adequate time to adjust. All concerned should visualize that financial health of the banks should be kept intact through proper classification and provisioning. The BRAC Bank Limited also facing the problem of loan default and that is why the bank has been facing difficulty in generating profit. The loan division of the BRAC Bank Limited has rectified the reason behind the problem and they think that due to political interference, lobbing in management, non-professional handling of credit disbursement, and high interest rate the problem of loan default is increasing. For approving a loan a client have to wait for two month before bank perform its investigation and Therefore, if the situation is going in that way, the future of that bank existence will be under threat. 5.0 LIST OF PERCEIVED PROBLEM Loan procedure is a very complex process. It took near about two month. Corruption and influence by other within the system playing an important role in loan management system. Number of Loan defaulter increase because of the loan procedure weakness. Day by day BRAC bank loosing their client because of unusual harassment. Because of the collaboration with Bangladesh bank the whole procedure become mismatch and time consuming. 6.0 DESCRIPTION OF THE SELECTED PROBLEM: 6.1 Narrative Description 1. A client wants to take loan from BRAC Bank, so he/she enters into one of the branches of BRAC Bank. 2. The client submits query to Loan Support Department for loan. 3. The Loan Support Department officials checks whether the client has a bank account in this bank or not. 4. If the client has an account in one of branches of BRAC Bank, then he/she needs to go to step 6. If the client has no account in one of branches of BRAC Bank, then he/she is

requested to open an account and he/she is sent to Account Opening Department. 5. If the client agrees to open an account and then opens an account, he/she has to wait for loan sanctioning procedure for six more months. If the client doesn’t agree to open an account, then the procedure goes to step 25. 6. The Loan Support Department informs the client about various loan schemes. 7. The client chooses one of the loan schemes. 8. After choosing the loan scheme, the client fills up the application and provides necessary documents. 9. After receiving the client application form and other necessary documents, the Loan Support Department collect, sort and modify application form. 10. Loan Support Department of the Branch Office prepares a proposal and sends it to the Head Office for verification. 11. Loan Support Department of Head office checks whether the client has already taken loan from any of branches of BRAC bank by the help of Branch Office Server. 12. If the client has already taken loan from any other banks of BRAC Bank, then Loan Support Department of Head office again checks whether the client performance is good or not. If the client hasn’t take loan from any other banks of BRAC Bank, then the process goes to step 15. 13. If the client performance is good, then the process goes to step 15. 14. If the client performance is bad, then the process goes to step 18 15. If the client has already taken loan from BRAC Bank and performance is good, Loan Support Department of Head Office prepares a proposal for Bangladesh Bank and sends it to Bangladesh Bank for further verification. If the client has already taken loan from BRAC Bank and performance is bad, then the process goes to step 18. 16. Bangladesh Bank checks whether the client is a loan defaulter to any other bank or not. 17. If the client is a loan defaulter to any other bank, then the process goes to step 18. If the client isn’t a loan defaulter, then the process goes to step 21. 18. Loan Support Department of Head Office prepares a loan denying paper and sends it to branch office. 19. Loan Support Department of Branch Office receives the loan denying paper and sends it to client. 20. Client receives the loan denying proposal and the process goes to step 25. 21. Loan Support Department of Head Office prepares a loan accepting paper and sends it to Branch Office. 22. Loan Support Department of Branch Office receives the loan accepting paper and verifies whether the client submitted documents are all right or not. 23. If the client submitted documents are all right, then Loan Support Department of Branch Office prepares a proposal in favor of the client, sanctions loan and sends the proposal to the client. The process goes to step 24. Again, the Branch Office sends the proposal of the client to Head Office. Head Office saves the client information into the Head Office Server. 24. The client accepts it and gets the loan. So, the whole process ends in favor of the client. 25. The client is refused and he/she leaves the bank.

6.2 As Is Process

7.0 RATIONAL The problem that the BRAC Bank Limited is currently facing off is a serious problem for the existence of the bank in the future because it will directly impact the overall profit of the bank. Other problems are listed belowLiabilities will be increased. Problem in generating profit. Have to kept more provision for the next year 8.0 SYMPTOMS Symptoms can be enlisted as below, In the year 2003, the amount of classified loan was increased twice in comparison of the previous year Dissatisfaction from the Strategic level people Liabilities were increased. 9.0 SCOPE After working and analyzing, we have identified the following scopes, Human Resource Management of Bangladesh Bank Time Required for Verification of the submitted documents by the client Money 9.1 Human Resource For a particular branch of BRAC Bank, there are only two to three persons in loan section. It is very difficult for them to handle all types loan related job very efficiently. 9.2 Management of Bangladesh bank

In loan verification process, the loan proposal of every client goes to Bangladesh Bank to verify whether the client took loan from any other bank and the client is a money defaulter to any other bank. To perform such activities, Bangladesh Bank took more than one month. The reason of taking so much time by Bangladesh Bank is the poor management of Bangladesh Bank. 9.3 Time Required for Verification of the submitted documents by the client Before sanctioning loan to the client, BRAC Bank verifies the submitted documents for a particular scheme which requires time. (By the client) 9.4 Money To make the loan support system faster, BRAC Bank requires recruiting more employees. To do so, BRAC Bank needs additional money and strategic level management doesn’t want to spend additional money. 10.0 DOMAIN Domain of the problem identified by us is as follows, Loan Support Department of BRAC Bank. Loan Verification department of BRAC Bank. 10.1 Loan Support Department of BRAC Bank Loan Support Department interacts with the clients, collects loan applications, process and made loan proposal etc. 10.2 Loan Verification Department of BRAC Bank Loan Verification Department verifies the submitted documents for a particular scheme. (by the client) 11.0 INTERFACE While identifying the interface of the problem, we find the followings, Board of Directors. Bangladesh Bank. 11.1 Board of directors Board of Directors of BRAC Bank sometimes interrupts the loan support system Sometime time they give some useful advice if any case. 11.2 Bangladesh Bank Bangladesh Bank verifies the status (related to loan) of the client with other banks (as per the request of BRAC Bank) and to perform such activity the client needs to fill up some forms provided by Bangladesh Bank and send it to Bangladesh Bank. 12.0 PROBLEM STATEMENT BRAC Bank wants to deliver loan within 15 days, BUT currently it requires more than 2 months. First of all, the workflow of loan support department will be observed in details. 13.0 PROBLEM CAUSALITIES

14.0 HYPOTHESIS GENERALIZATION 14.1 Narrative TO-BE Process 1. A client wants to take loan from BRAC Bank, so he/she enters into one of the branches of BRAC Bank. 2. The client submits query to Loan Support Department for loan. 3. The Loan Support Department officials checks whether the client has a bank account in one of branches of BRAC Bank or not. 4. If the client has an account in one of branches of BRAC Bank, then he/she needs to go to step 6. If the client has no account in one of branches of BRAC Bank, then he/she is requested to open an account and he/she is sent to Account Opening Department. 5. If the client agrees to open an account and then opens an account, he/she has to wait for loan sanctioning procedure for six more months. If the client doesn’t agree to open an account, then the procedure goes to step 22. 6. The Loan Support Department informs the client about various loan schemes. 7. The client chooses one of the loan schemes. 8. After choosing the loan scheme, the client fills up the application and provides necessary documents. 9. After receiving the client application form and other necessary documents, the Loan Support Department of Branch Office collects sorts and modifies application form. 10. Loan Support Department of Branch Office checks whether the client has already taken loan from any of branches of BRAC bank by the help of Branch Office Server and Head office Server. 11. If the client has already taken loan from any other banks of BRAC Bank, then Loan Support Department of Branch Office again checks whether the client performance is good or not. If the client hasn’t take loan from any other banks of BRAC Bank, then the process goes to step 14. 12. If the client performance is good, then the process goes to step 14. 13. If the client performance is bad, then the process goes to step 18. 14. If the client has already taken loan from BRAC Bank and performance is good, Loan Support Department of Branch Office prepares a proposal for Bangladesh Bank and sends it to Bangladesh Bank for further verification. If the client has already taken loan from BRAC Bank and performance is bad, then the process goes to step 17. 15. Bangladesh Bank checks whether the client is a loan defaulter to any other bank or not. 16. If the client is a loan defaulter to any other bank, then the process goes to step 17. If the client isn’t a loan defaulter, then the process goes to step 19. 17. Loan Support Department of Branch Office receives a negative message from Bangladesh Bank and prepares a loan denying paper and sends it to client. 18. Client receives the loan denying proposal and the process goes to step 22. 19. Loan Support Department of Branch Office receives a negative message from Bangladesh Bank and prepares a loan accepting paper and verifies whether the client submitted documents are all right or not. 20. If the client submitted documents are all right, then Loan Support Department of Branch Office prepares a proposal in favor of the client, sanctions loan and sends the proposal to the client. The process goes to step 21. Again, the Branch Office sends the proposal of the client to Head Office. Head Office saves the client information into the Head Office Server. 21. The client accepts it and gets the loan. So, the whole process ends in favor of the client.

22.

The client is refused and he/she leaves the bank.

14.2 TO-BE Process 15. DATA FLOW DIAGRAM: Level 1 DFD

Figure : Level-1 data flow diagram as-is in BRAC bank ltd.

Figure : Level 1dataflow diagram illustrate proposed system of the BRAC bank ltd. 16.0 ALTERNATIVE SOLUTION They have developed a solution which is centralized database system for all the branches of BRAC Bank for identifying a client as a loan defaulter within a shorter period of time. The alternative solutions for this problem can be as follows – 1. The organization can increase the number of employees in the Loan Support and Verification Department in order to identify a client whether a client is a loan defaulter or not. 2. The organization can make a request to Bangladesh bank to perform their verification within a shorter period of time. 3. The branches of BRAC Bank can increase the internal communication among them. 17.0 FEASIBILITY STUDY To choose the correct solution for Loan Support Department of BRAC Bank, they consider some organizational, economical, technical and operational aspects which are generally called the feasibility study.

A feasibility study is a preliminary study to investigate the information needs of prospective end users and the objectives, constraints, basic resource requirements, costs, benefits and feasibility of a proposed project. The goal of feasibility study is to evaluate alternative systems and to propose the most feasible and desirable systems for development. • Organizational Feasibility: In this part it is determined how well a proposed information system supports the objectives of the organization’s strategic plan for information systems. • Economic feasibility: In this part it is determined whether expected cost savings, increased revenue increased profits, reductions in required investment, and other benefits exceeds the costs of developing and operating a proposed system. • Technical feasibility: In this part it is determined whether reliable hardware and software capable of meeting the needs of a proposed system can be acquired or developed by the organization in the required time. • Operational feasibility: This part studies whether the management, employees, customers and suppliers have the ability and willingness to operate, use and support the proposed system. 18.0 REQUIREMENT ANALYSIS 18.1 Functional Requirement 1. Provide Loan Related Information to Client. 2. Checking whether the Client has an account with the bank. 3. Acquisition of the Client provided information and documents by bank. 4. Checking whether the Client has taken any other loan from this bank or not. 5. Checking the Client performance with the bank if he/she has already taken loan from this bank. 6. Checking whether the Client has taken any other loan from any other bank or not. This checking job is performed by Bangladesh Bank. 7. Checking the Client performance with other bank(s) if he/she has taken loan from other bank(s). 8. Check the validity and accountability of Client submitted documents. 9. Preparation of loan sanction or denying papers. 10. Submitting the loan sanctioning papers to the Head Office of Bangladesh Bank. 11. Handover the loan sanctioning or denying papers to the Client. 12. Handover approved loan money to Client.

18.2 Performance Requirement 1. Processing Speed: If the client has already taken loan from this bank, then client’s performance and money defaulting status will be checked within 3 minutes by utilizing Central Database Server System. 2. Availability: The entire loan support department related information, client information; client

status information will be available within all the branches of BRAC Bank. Any authorized loan support department executive can be able access these information within the banking hour. All the updates in central database will be real time. 3. Reliability: The entire loan support department related information, client information; client status information will be store in Branch and Central Database. When any job needs to be performed, then accessibility to information will be pretty easy. The executive(s) will just need to give some query to access the information and any kind of report generation will be real time. 4. Expandability: All the branches of BRAC Bank will be under one central database. So, any query related to loan support will real time. If Bangladesh Bank and other banks are willing to do make a central database, then BRAC Bank can be able to expand the system with the Bangladesh Bank Central Database system very easily. 18.3 Usability Requirement 1. In times of designing the system, organizational vocabulary of the BRAC Bank is used. 2. The proposed system is one of the replacement of the existing standard beside this it also added some additional standards which will be user friendly for the executives of BRAC Bank. 3. In every phase of operation, proper feedback is given to the user so that user will not become confused. 4. If any illegal operation is performed, error message or necessary information is provided to the users. 5. All the right information in provided in the right place so that user can locate it easily. 6. In the design phase, the consistency of the user work is maintained. 7. The design of the system is done in such a way, so that the users need not to memorize/remember so many steps. One of the mottos of the design was to minimize the use of user memory. 8. User will get meaningful messages in every step of action. 19.0 LOGICAL DESIGNS Logical system design involves developing general specifications for how the basic information system activities of input, processing, outputs, storage and control can meet end user requirements. In the system design stage, the logical design concepts are refined and finalized. 19.1 Inputs requirements Inputs of the system will come from the following two entities, • Clients: Clients of BRAC Bank provides the Account Number in the BRAC Bank. By this account number the executives collect the client’s personal information, account status, already taken loan status from the BRAC Bank and other banks. • Executives of the Loan Support Department: The executives of the bank give query in providing different services to Clients. They also give query in performing their internal works such as generating different reports regarding clients, trend of sanctioned loan, trend of money defaulter etc.

19.2 Output requirements The outputs of the system will be client’s accounts status, client’s accounts validity, client’s already taken loan status with the BRAC Bank and other banks (if any), loan proposal, sanctioned loan etc. 19.3 Processing requirements 1. Client’s account validity and status checking process (Checking whether the applicant for the loan has an account with the BRAC Bank which is more than six months old or not). 2. Filled up Loan application by the applicant (Checking whether the applicant has filled up the all the fields of the form properly and relevantly or not). 3.

Verifying all the loan applicant submitted documents properly.

4. Identifying whether the applicant is a loan defaulter with BRAC Bank or other banks or not (Identification process of an applicant as a loan defaulter with the BRAC Bank is performed by Centralized Database System of BRAC Bank and with any other banks is performed by the help of Bangladesh Bank). 19.4 Storage requirements The database will store filled up form’s information (temporarily for further verification), file number of applicant submitted documents (The documents against which the applicant wants loan), loan proposal Information (Temporarily), sanctioned loan information. 19.5 Control requirements To access into the centralized database system, there is a control mechanism for each level users. To log-in into the system, each user needs to submit their username and password and by the username and password, the system recognizes the access level of the user. If the user inserted wrong or invalid username or password three times consecutively, then the system will lock his/her access temporarily and to get back his/her access, the user needs to meet with the system administrator about his problem. Each user of the system won’t get same level of access into the system. i.e. The customer relation officer will only get the access of checking a client’s accounts information. Again, the executive officer of the loan support department will get some additional access into the system such as loan verification process, loan sanction process etc. 20.0 USER INTERFACE The task-centered design process is basically a design technique which performs a task by an interface. In this process, one task is performed by one interface (usually the user interface). The steps in the task-centered design process are as follows – 1. Identify and Describe user role. a) Role Name b) Job description. 2. Identify major task for each role. a) List of task. 3. Select representative task.

a) b) 4.

Task description. Graphics User Interface. Evaluation of User Interface.

By following the graphic design principle, doing a cognitive walkthrough and also following the Nelson’s heuristic analysis, we build the user interface of the BRAC Bank loan support department as a task-centered design. 20.1 The user role of Loan support Department 1. Customer Relation Officer of the loan division: Customer Relation Officer provides loan scheme paper, acknowledges client’s account number (if the client already has an account with the BRAC Bank which is more than six months old), performs the verification whether the client has really an account with the bank and if the client account number is valid and the client is agreed with one of the loan schemes, then he provides a loan application form to the client to fill it up and submit it to the Executive Officer for further verification. 2. Executive Officer of the loan division: After filling up the loan application form, the client submits it to Executive Officer. Then the Executive Officer checks the client’s already taken loan’s status (if the client has taken any other loan from the BRAC Bank) and the performance. If the client performance with the BRAC Bank is satisfied, then he prepares a paper for Bangladesh Bank requesting for the verification of the client’s already taken loan status with any other banks (if any). He also store the client submitted papers in the cabinet by giving a tag number. He also receives the acknowledgement of Bangladesh Bank of his request. If the acknowledgement of Bangladesh Bank is positive in respect of the client, then he also asks the client to submit necessary documents in favor of the loan and receives these documents from the client. Then he sends these documents to the Verification Officer. Executive Officer also receives the feedback from verification Officer after verifying the client submitted documents. 3.

Verification Officer of the loan division:

Verification Officer of the Loan Support Department receives the customer submitted documents from the Executive Officer, performs the verification and sends the feedback to the Executive Officer.

20.2 The screen flow and the list of action by the users How the users will view the system and the sequential screen flow have discussed below:

20.2.1 List of actions taken by the Customer Relation Officer

1. The Customer Relation Officer logs-in into the BRAC Bank’ Loan Support Department Database by entering his/her name and password. Fig: Login Screen

2. If the Customer Relationship Officer inserts wrong or invalid user name or password then the following message box will appear:

Fig: Feedback Message 3. After opening the master form of loan support Department’s Database, the Customer Relation Officer opens the Accounts Information -> Accounts Verification Form or use the short cut command Ctrl+B: Fig: Main Screen

4. In the Accounts Verification Form, the Customer Relation Officer verifies the client’s account validity by using client account number:

Fig: Accounts Verification Form 5. When the Customer Relation Officer submits the form for accounts verification, then the user will get an instant message as a feedback for ensuring the submission of the form information:

Fig: Confirmation Message

6. The output of the verification shows the details information of the client’s account:

Fig: Accounts Inform

7. Then the Customer Relation Officer logs out from the system and tells the client to fill up the loan application form and then consult with Executive Officer.

Fig: Log out 8. After selecting the log out option the customer relation officer will get an alert message:

Fig: Alert Message 20.4.2 List of actions taken by the Executive officer Task One: Loan Application saving steps. 1. The Executive Officer logs-in into the BRAC Bank’ Loan Support Department Database by entering his/her name and password.

Fig: Login Screen 2. If the Executive Officer inserts wrong or invalid user name or password then the following message box will appear:

Fig: Feedback Message 3. After opening the master form of the Loan Support Department’s Database, the Executive Officer opens the LoanInformation -> LoanApplication or use the short cut command Ctrl+A to fill up the temporary information of the applicant:

Fig: Main Screen

4. In the Loan Application Form, the Executive Officer fills up the client’s submitted application and then save the client’s information:

Fig: Loan Application Form 5. When the Executive Officer saves the form, then he will get an instant message as a feedback for ensuring that the information is saved:

Fig: Confirmation Message

Task two: Loan Verification Steps 1. Another task that is performed by the Executive officer is Loan Verification. For that from the master form of the Loan Support Department’s Database, the Executive Officer opens the LoanInformation -> LoanVerification or use the short cut command Ctrl+V:

Fig: Main Screen

2. In the Loan Verification Form, the Executive Officer fills up the applicant’s identity, account number and name and then he sends it to the head office for verification: Fig: Loan Verification Form 3. When the Executive officer fill up the form and submit it to inquiry to the head office then he will get an assuring message his query is been sent.

Fig: Confirmation Message

Task three: Loan Proposal Steps 1. After receiving the report (about the Applicant) from head office and Bangladesh Bank the Executive Officer will make a proposal for that particular applicant. To do that from the master form of the Loan Support Department’s Database, the Executive Officer opens the LoanInformation -> LoanProposal or use the short cut command Ctrl+P:

Fig: Main Screen

2. In the Loan Proposal Form, the Executive Officer fills up the applicant’s information and the decision that is made by the Head Office and Bangladesh Bank. Then he saves it to the database:

Fig: Loan Proposal Form

3. When the Executive officer fill up the form and save it, he will get an assuring message that the message is saved.

Fig: Confirmation Message Task four: Loan Sanction Steps 1. When the proposal is accepted by all criteria. The Executive Officer will save the sanction loan information into the database. To do that from the master form of the Loan Support Department’s Database, the Executive Officer opens the LoanInformation -> LoanSanction or use the short cut command Ctrl+S:

Fig: Main Screen 2. In the Loan Sanction Form, the Executive Officer insert some loan information that is going to sanctioned, this information include how much money is sanction, what are the condition and who is going to supervise the sanction loan .

Fig: Loan Sanction Form 3. When the Executive officer fill up the form and save it, he will get an confirm message that the message is saved.

Fig: Confirmation Message 7. Then the Executive Officer logs out from the system and send a report of sanctioned loan to the client.

Fig: Log out 8. After selecting the log out option the customer relation officer will get an alert message:

Fig: Alert Message 21.0 IMPLEMENTATION 21.1 Major Work to Perform w1) w2) w3) w4) w5) w6) w7) w8) w9)

Senior Management Agreement. Recruit Skilled People. Collect data. Design the Centralized Database System by using ERD or UML etc. Decide what type of topology will be used. Decide what sort of software or hardware will use. List all necessary things that have to buy. Acquire Hardware. Acquire Software. w10) Front-end Design. w11) Back-end Design. w12) Setup the central server. w13) Established network connection.

21.2 Time Estimation Matrices Break Down Work Duration D=(O+4S+P)/6 W1) 1 2 W2) 10 12 W3) 4 5 W4) 6 8 W5) 2 3 W6) 6 8 W7) 8 11 W8) 6 7 W9) 5 10 W10) 12 15 W11) 10 18 W12) 4 8 W13) 10 12

Optimistic Time(O) 3 14 6 10 4 10 14 8 15 18 20 12 14

Standard Time(S)

Pessimistic Time(P)

2 12 5 8 3 8 11 7 10 15 17 8 12

22.0 RISK ASSESSMENTS Once an organization understand the threats to its property, risk assessment is

required. Risk assessment includes an assessment of the effects of a threat. If the threat occurs, how the organization will take proper action so that the losses remain low? Risk assessment answers this question. 22.1 Risk Identification Risk identification refers to identify the potential risks. This section identify all the risks (material or non-material), which can be the reason for the loss of the organization. We have identify some potential risks for Centralized Database System of Loan Support Department of BRAC bank, which are mentioned bellow – Security Risks: Today’s world is heavily dependent on the technology and for that the risk of security is rising. Security violation of the system can be intentional or an accidental. Some intentional access can be unauthorized reading of data, unauthorized modification of data, unauthorized destruction of the data etc. System Crash As the development of the technology so many devices and software are usually used to developed a system. Beside this for a machine it is not possible to service a system lifetime. Because of this uncertainty, it is possible that our system may face some system crash. Systems are usually crash depending on two components. They are: a) Software b) Hardware In the case of software, it is possible computer, the database that is using to central server can crash by the effects long process that creates the deadlock,

that the operating system can hang the do operation may hang or destroyed and the of bugs, the system can be overload, some bottleneck in the dataflow etc.

And in case of hardware, it is possible that some device is being damaged, the storage media is crashed, the processor that is executing the processes can be damaged, the communication medium may be damaged and other peripherals can crash. Network Failure The system that is implemented in every branches of BRAC Bank uses radio link to connect them from any branch to head office. So it is possible that the connection can lost its frequency or the ISP can have problem which can cause network failure. If the network failure is occur the executive officer of loan support department will not get the instant result of his query. This will delay the loan process. Power Failure Power failure is one of the major risks for the implemented system. In Bangladesh, power failure is a daily life event. When the failure of power is occur, the volatile media that mean the main memory will loss all temporary data. If the executive officer does not save all the application or the output of his query, he has to make these operations again. Physical Security The site or sites containing the computer systems may be face physically insecure

against armed or surreptitious entry by intruders. The heart of the centralized database system where it is situated can be in an insecure state. Inside personnel can do harm to the system if the facility isn’t secured enough. Fire Every system needs some energy to run usually this energy is come from the electricity. So it is often possible that the system can face fire for the occurrence of short-circuit, smoking and other factors. 22.2 Risk Policy Anything uncertain that causes the system to fall into a problem is usually called a risk. But the system that means the Centralized Database System of the loan support department which is already implemented will face some risk in times of doing its operation. But if the risk does not cost much or the amount of damage cost low against benefits then depending on the policy (what we are going to define) we will considered a risk whether it is material or not. Risk policies help us to make decision exactly what score of risk expectancy for a particular risk will be considered as a material risk. For the system that is implemented by BRAC Bank if the risk expectancy score exceed more then 1000 then we called it as a material risk. 22.3 Risk Quantification Not all risks are created equal damage. Risk quantification is the process of evaluating and determining the effect a risk. Risk quantification is denoted as RE and measure by the expression: RE = Probability or Likelihood * Magnitude. Likelihood can be calculated as: No. of occurrence of an event / Number of days. And Magnitude is: Amount of loss per occurrence of an event After quantifying the risks, the Quantification & materiality checking of Centralized Database System of Loan Support Department: Risk

No. of occurrence No. of days Likelihood Magnitude Risk Expectancy Decision about the risk Security Risks 3 300 0.01 100000 1000 Material System Crash 2 300 0. 0067 150000 1005 Material Power Failure 20 300 0.06 20000 1200 Material Network Failure 3 300 0.01 100000 1000 Material Fire 1 300 0.0033 1000000 3300 Material Physical Security 1 300 0.0033 800000 2640 Material 22.4 Mitigation Plane Mitigation Plane usually helps us to reduce the probability of Risk. It generally the plane against a particular risk that help us to take appropriate action when an Identified risk occur. It is basically answering the question, how do we control any occurrence of risk? A risk mitigation program will prevent losses and reduce the cost of losses that do occur while creating a safer environment for the employees, business partners, and the communities in which the organization operate.

Risk mitigation plane or control can be done in three ways. They are: 1. Preventive (Preventive mitigation is done before the actual risk occur.) 2. Detective(Detective mitigation is done when the risk is taking place) 3. Corrective (Corrective mitigation is the way to take corrective action after the risk has occur). The preventive, detective & corrective actions for the risks which have already been assessed are: Security Risks For the centralized database system for the loan support department of the BRAC bank, there must be some kind of security measure to prevent the system from different types of attackers/hackers and different types of attacks such as Web Server Attacks, Buffer Overflows, Denial of Service (DOS) Attacks, Session Hijacking, Cryptanalysis and Brute Force Attacks etc. The preventive action of this risk is to provide password and Id number to all users. Don’t give any common password or Id to two different users. Tell the user to keep the password secret from any other person. The detective action for this security risk can be done in different way. If any user wants to access some unauthorized file then the administrator will get a signal or message. To correct the security risks that is already occurred, there must me some trained professionals to take the corrective measure. System Crash If the System crash is a risk then the preventive action can be to use reliable operating system, web server, web programming and database system, use SCSI hard drive as RAID volume for reliability and consistency. And also provide appropriate backup so that if a system crash occur then the backup server or backup storage can continue the work. The corrective action is that, if the system failure occurs the administrator will get an instant message and take appropriate action. To correct the system crash the BRAC bank can employ some skilled people. Power Failure If the power failure of the system occurs then the preventive action of this can be to use UPS, IPS or power substation for stable and consistent power supply. If power failure is occur then the administrator of the system will get a signal or message in this moment the current state of the job will be save by all employee. If because of the power failure some data lose occur then use some data recovery tools to recover the data. Network Failure If network fail, the process of the workflow will be breakdown. To prevent this use some high performance network device so that at any circumstances the system network will not fall down. To take corrective action in proper time, use network link monitoring system so that appropriate action can be taken in appropriate time. Fire Fire is another risk that may case serious damage to the system. The preventive action for this risk can be, implement some rule such as don’t smoke at working hour etc or make some insurance for the system. The detective action can be use

fire alarm system to detect the fire. The corrective action can be using some fire extinguisher to remove the fire when fire occurs. Physical Security To prevent the intruder or terrorist or to maintain a good security the following action can be taken: a) Install magnetic card readers to access the data center. b) Escort maintenance workers and field technicians at all times in the data center. c) Create accounts for each administrator. Monitor their user. d) Enables password-protected screensavers. e) Install a good monitoring device that alert a human in the event of excessive temperature, smoke, or humidity in the data center. f) Use close circuit camera to monitor human activities in the data center. 23.0 Developing the system solution .Developing the system development cycle we have several steps to do.

Investigate: From the study of BRAC bank we found that there the bank authority is doing the whole loan procedure system with the help of branch offices but they are not using the automation system. Analyze: For not using the automation process the whole loan system of BRAC bank is facing the problem. Design: To solve the problem of the present IS system of the BRAC bank we proposed for a central server that will be connected with the all branches of BRAC bank Implement: To implement the whole loan procedure system we suggest building a database management system with the help of Visual Basic and Visual C.

Maintain: We have to maintain the database with the help of a database administrator, who will maintain the whole system. 24. 0 System Design

Screen, Form, Report and Dialog Design For screen design we suggest to use the Visual Basic and Visual C made database management system. Which will be much cost effective and user friendly for the BRAC bank’s employee. Now the whole loan procedure is taking 30-45 to days. This is a long time for the customer. But this user friendly system will help the employees to investigate about the customer quickly. Data element structure design It includes the design of database which is made of Visual Basic and Visual C. Program and procedure design For the whole loan procedure system of BRAC bank will hire the software firm to build up the software. 25.0 CONCLUSION The existing loan process system at BRAC Bank requires two to three months to sanction a loan to the client. By analyzing the existing loan process system we came up with a feasible solution. We suggested that the loan Support department of every branch of BRAC Bank can developed a centralized database system with the head office to make the loan process quicker. The suggested solution has few risks involved. We studied the possible risks that can arise in the suggested solution and came up with a mitigation strategy for those material risks. The suggested loan process system will make the whole process faster. This process would enable The BRAC Bank to reduce the long time that is required for loan sanctioning. For this great facility the mission that the BRAC Bank has will fulfilled. They will be more beneficial.