THE INFORMATION SYSTEM OF BANK UNDER
THE E-COMMERCE ENVIRONMENT
Lili Zhu
School of Economics and Management, Beijing Jiaotong University
No.3 Shang yuan Vallage, Haidian District, Beijing, China
Keywords: E-commerce, Information System, Bank.
Abstract: This paper based on the analysis of the E-commerce demanding for the banks and the operating
environment, investigates the effects of electronic commerce on the marketing campaigns of banks. The
final result is as follows: to set up electronic commerce systems, communication between information
system of banks and each entity is essentially necessary. Moreover, banks need to improve the inner
requirements for EC and create the better supporting environment to develop E-commerce. In addition, to
establish bank information system under the E-commerce, the key point, however, is to put emphasis on the
set-up between internet network system and open-ended but integrated information system of banks.
1 INTRODUCTION
With the development of information technology
and E-commerce, the traditional framework of
information system is challenged. With the
introduction of E-commerce, banks are facing the
environment transfer from traditional circuit to
present marketing open-ended. Moreover, the
corresponding enterprise information management
framework is also developed from traditional closing
MIS type into related marketing E-commerce type.
To survive and acquire the competitive advantages,
banks have to take information and network
technology as bases, rebuild business process and
redesign information system.
2 REQUIREMENTS OF BANK’S
INFORMATION SYSTEM
FOR E-COMMERCE
E-commerce cannot exist without the information
system, it itself is the application of new information
technologies; which is bound to expand and develop
the information systems. Information system also
fails its adherence to the original framework; it is
obliged to include e-commerce so as to make a new
face based on the original system. Thus, the e-
commerce and information systems are penetrated
and connected, forming the most competitive
integral part of business in the information age. E-
commerce usually refers as commercial activities
that business is promoted via the network and
advanced digital media technologies among the
various entities (production enterprises, commercial
enterprises, financial institutions, government
agencies, individual consumers and so on). To put it
simply, e-commerce is one kind of effective and
efficient commercial activity through the use of
network and information technology. Generally, to
develop e-commerce, banks need to address four
main core issues: information flow, capital flow,
logistics and security. Information flow is the
biggest advantage of e-commerce. It can be quickly
passed through the transport information of network
technology. In compassion, the traditional business
of information communication takes a lot of time
and effort, resulting in high transaction costs. Cash
flow is a challenge to E-commerce; we need online
banking and electronic money settlement to deal
with business. Logistic flow can be divided into two
categories, one is logistics of digital products that
can be done through the network, and the other one
is non-digital that cannot be resolved by information
technology. Security is the bottleneck of e-
commerce development. E-commerce is difficult to
extensively be developed if we cannot solve security
issues. Therefore, bank’s information system
construction must make a smooth flow of real-time
554
Zhu L..
THE INFORMATION SYSTEM OF BANK UNDER THE E-COMMERCE ENVIRONMENT.
DOI: 10.5220/0003610505540558
In Proceedings of the 13th International Conference on Enterprise Information Systems (IAST-2011), pages 554-558
ISBN: 978-989-8425-55-3
Copyright
c
 2011 SCITEPRESS (Science and Technology Publications, Lda.)

transmission for business information, capital flow
and logistics. In addition, the safety of specific
business activities is especially necessary.
Specific requirements:
 The exchange of information needs to be
achieved rapidly and extensionally among
the within and the outside of the entity, the
internal equipment sector and the different
levels.
 The real-time subsystem must be included to
achieve the cash flow of the transmission in
the enterprise information systems.
 The ancient security features should be
achieved to ensure the security of e-
commerce activities.
3 OPERATING ENVIROMENT
OF BANKS FOR ELEC TRONIC
COMMERCE
E-commerce relates with customers,cardholders,
banks and various aspects. Special Network is a
necessity among different banks. E-commerce is
done on the Internet. Financial private network
communicates with payment gateways though
network. Therefore, payment gateways of pay
internets take a security work here.
3.1 Process
Courses of dealing:
 The consumer (cardholder) issued a purchase
request to the merchants
 Merchants sent consumer's payment
instructions to the merchant acquirer.
 Acquirer sent the authorization information
back to acquirer through the payment gateway
after getting the authorization from issuers
(consumer’s opening bank) through the
financial private network.
 Merchant acquirer sent feedback information
to consumers after getting the authorization. If
payment and authorization didn’t finish at the
same time, the merchant acquirer need to send
a request to the acquirer through the payment
gateway to transfer the amount of the
transaction to the merchant's account.
Banks complete their settlements by the inter-
bank payment system.
3.2 Two Basic Elements
Banks develop e-commerce relies on two basic
elements:
 Develop the internal demand of the enterprise
for promoting EC.
 Support the external environment of the
development of e-commerce, such as the sound
laws and regulations, system (the legality of
digital signatures, the validity of electronic
documents, the appropriate tax incentives of e-
commerce, etc.), sound norms and standards
(the normative of security payments, etc.), safe
and reliable authentication system, a strong
network environment ( including public and
private networks), and the efficient and secure
payment systems. The network topology
diagram, as shown:
Figure 1: E-commerce’s network topology.
4 E-COMMERCE IMPACT
TO MARKETING ACTIVITIES
OF BANK
With the development of enterprise information and
business activities, an extensive e-commerce
become more and more important in the economic
life, it will become the inevitable choice of
individuals and enterprises, in particular, enterprises
will be the biggest beneficiaries. E-Commerce
provides the opportunity to take part in global
competition, increased marketing opportunities,
reduce trading costs and improve trade efficiency for
banks, e-commerce will have a tremendous and
profound impact on bank’s marketing activities.
THE INFORMATION SYSTEM OF BANK UNDER THE E-COMMERCE ENVIRONMENT
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4.1 Electronic Commerce’s Impact
on Business
E-commerce thoroughly changed the method of
operation of the bank’s business .E-commerce
enables the transfers of information flow, capital
flow and part of the information logistics to network,
so that the network become the main space of
economic activities and create the new growth point,
and gradually completed the transition from the
industrial economy to new economy ( Network
Economy).
4.2 E-commerce’s Impact on Bank’s
Market
E-commerce shorten the distance between banks
and customers. Through the establishment of an
electronic store or the website's home page,
customers are allowed to transfer their business
needs directly and quickly converted to the
production order.
4.3 E-commerce’s Impact
on Production
E-commerce’s the largest impact of the bank’s
marketing activities is reflected on the production
area. Mainly as follows:
 Reduce procurement costs.
 Reduce business inventory.
 Increase their trading opportunities.
4.4 E-commerce’s Impact on Bank’s
Management
E-commerce promote the implementation of
information resources management. Banks adopt
effective methods of information resources
management, and use the advantages of e-business
information to improve bank’s management level,
thus greatly reducing friction, and increasing
efficiency. Timely and accurate exchange of
information make the contract management more
orderly, allocation of resources become more
rational, and marketing decisions turn to more
scientific. Multinational organizations’ global
business and cross-border management become
possible by the establishment of e-commerce
system.
4.5 E-commerce’s Impacts on Bank’s
Organizations
The development of electronic commerce will result
in the organizational structure of banks violently,
prompting banks to accelerate the pace of change
and restructuring. With the development of
electronic commerce, the old boundaries between
the various units of the bank will be broken and re-
combination of a team which provide services for
customers directly. The Closed pyramid structure
will turn into a new network-type organization
which is more convenient to communicate with each
other and learn from each other. E-commerce will
create a large number of virtual enterprise, besides,
enterprise’s organizational and its management are
required to relocate.
4.6 E-commerce’s Impact on Bank
Professionals
The impacts of e-commerce to bank’s marketing
activities above will enable banks to adapt to
profound changes. To meet the requirements of
business change in the information age, human
resources will become the focus of competition. The
decision-makers of the bank will become younger,
high-quality, interdisciplinary and cross-cultural
Business, financial, information management,
computer networks and other professionals, will
become the minion under the e-commerce
environment.
5 SEVERAL PROBLEMS
IN THE IMPLEMENTATION
OF THE NEW BANKING
INFORMATION SYSTEM
UNDER THE E-COMMERCE
ENVIRONMENMT
Banks in the overall strategy should be designed to
adapt to each other by considering the establishment
and development of e-business goals, business
systems and organizational structure.Trying to be
value-oriented and efficient, and create a stronger
competitive advantage on the enterprise value chain
to improve competitiveness and strategic image of
the bank. In order to adapt science and technology’s
rapidly changing, business strategy must be changed
, and to be flexible and agile, all should face the
global market and oriented to the customer
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556

satisfaction. Under the e-commerce environment, the
following two issues worthy of drawing attention in
the implementation of new bank management
information system.
5.1 Bank’s Computer Network System
Bank’s computer network system includes an
internal network system (Intranet), external network
system (Extranet) and the intelligent network
management system. Intranet and Extranet are used
to organize internal or external internet, the
intelligent network management system can manage
the network resources to ensure the security of
enterprise information resources and achieve the
automation of the operation of the enterprise Web
site management and maintenance.
Intranet / Extranet can connect all departments of
the bank in real-time and improve management’s
efficiency and the rate of feedback. Create a NIS
system which comprehensive involved in
production, supply and production, operation,
management and several other major aspects and
improve the quality and efficiency of management
not only is the measures to establish internal
management, but also is the key to the electronic
commerce.
5.2 The building of Bank's Open
Integrated Information System
The rapid development of computer networks and e-
commerce technology has brought great
opportunities and challenges to the business model
of traditional business organizations, they are
changing almost every aspect of business. At
present, many companies are establishing their own
e-commerce systems. Therefore, we must implement
the integration of the e-commerce and information
system in order to form an open integrated
information system.
Through the internal network system, we can
combine management data with external data, and
combine bank’s e-commerce systems EC,
management information systems MIS, decision
support system DSS, OA office automation systems
together. We can integrate the data warehousing,
data mining technology to from product marketing,
business development, new product development,
production planning, product processing to other
aspects of information resources, and apply them in
deeply, forming a new sound information system in
finally. Bank’s new information system finish a low-
cost, immediate and direct data transmission and
sharing through the bank’s intranet and extrane
which are based on browser .According to market
demand, we can make the production planning,
material supply arrangements, organization of
production and processing together for all
departments within the bank and the bank's joint
ventures which are on supply chain.
Because of the information within the enterprise
and all partners are transparent, so in the process of
the plan’s development and implementing, the plan
can be adjusted according to actual conditions, to
ensure the program’s effectiveness. Currently,
bank’s integrated information system is a closed
automated system, we need to translate them into
information systems which are based on unified
chain of web, in order to achieve the effective
coordination operations with all partners in the
supply chain.
Complete integrated information system should
include all internal and external customers and
market-related information, it not only includes the
production task information, equipment information,
management information, quality information, stock
information, material and financial information, etc,
but also including suppliers, customers and market
information.
For businesses, there will be no information be
devided as inside information and outside
information, but only as a link of the corporate’s
information chain. The application of new
information system, is not only a technical
implementation of the process, but also a process of
management’s restructuring and technical
knowledge’ innovation. To enhance the competitive
advantage in supply chain management, it’s
necessary to reform the entire supply chain and
restructure the organization.
6 CONCLUSIONS
The information system of enterprise is related to the
E-commerce’s which established on the
communication of each entity. To set up electronic
commerce systems, communication between
information system of banks and each entity is
essentially necessary. Moreover,banks need to
improve the inner requirements for EC and create
the better supporting environment to develop E-
commerce.The E-commerce would influence banks
on aspects of Economics, Marketing, Production,
Management, Organization, Talents, etc.
In addition, to establish bank information system
under the E-commerce, the key point, however; is to
THE INFORMATION SYSTEM OF BANK UNDER THE E-COMMERCE ENVIRONMENT
557

put emphasis on the set-up between internet network
system and open-ended but integrated information
system of banks.
ACKNOWLEDGEMENTS
This research was supported by the Students’
innovative experimental projects of Beijing Jiaotong
University in 2010 (Number 1040006).
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