Nowadays, the information technologies have penetrated every sector of the market and become an inseparable instrument of every self-respected company. These technologies ensure control and development of the organization. In point of fact, the information technologies are a kind of living organism that keeps changing all the time and needs heightened attention. No organization is able to exist on the market without its products. Activities of all sectors directly depend on functioning of their information systems. As for the organizations operating in the financial market, the automation level of their operations should allow these organizations to cooperate easily through information technologies with financial institutions of Kazakhstan and other countries. The concept of “financial organization” implies today a mechanism equipped with modern solutions in terms of both technology and software. The CJSC “Kazakhstan Mortgage Company” can be undoubtedly referred to the category of such financial organizations.

At the beginning of operations of “Kazakhstan Mortgage Company” its management faced a difficult problem: to choose software for automation of the company’s activities. As a result, the company entered into an agreement with the Republican State Enterprise with the Right of Economic Management “Banking Service Bureau” concerning installation of the automated banking information system, which was developed by professionals from the Republican State Enterprise with the Right of Economic Management “Banking Service Bureau”. Today, taking into account the results of the system functioning, one can say with certainty that the Company made the right choice by signing an agreement with the Banking Service Bureau.

Though the truth is that the Kazakhstan Mortgage Company had another alternative for automation of its activities: to install a banking system developed by Russian programmers. While there is a lot of such systems in Russian market, a very few software designers have banking systems in Kazakhstani software market. However, this alternative would have been too expensive for the company. Firstly, cost of software installation by Kazakhstani software organizations is always cheaper than that of non-residents. The second important reason taken into consideration by the management of the Company in choosing the software vendor was the necessity for adaptation (follow-on development) of a banking system of any kind (local or foreign) to the Company’s activities, which would finally result in Auxiliary consumption of time and money.

Any organization should have a regulatory framework (regulations, instructions, etc.) that describe business processes of the organization in order to implement software successfully. During the system implementation the designers from the RSE BSB were provided in due time with all required information concerning the regulatory framework, i.e. the employees of the company managed to develop it for the Company’s operations within a short period of time.

The approach offered by the Banking Service Bureau for implementation of an automated information system in the company was dictated by the today’s time. As the result the system was adapted to the activities of the Company, customized and installed in three stages within a short period of time.

At the initial stage the system was put into operation as a prototype in order to provide the users with the most necessary users’ functional;

At the second stage the system was implemented with full-featured functional;

At the third stage (to be completed in December 2004) the system functional will be extended in terms of automation of the process of the Company’s cooperation with the partner banks, i.e. a system module is designed. This module will support the company’s operations with the partner banks by means of electronic documents. Each partner bank may install this module and exchange electronic messages with the Company. The “Teamwork and corporate flows management” module is also implemented at the third stage to automate the document circulation within the company.

Today the direct users of the system are the Company’s management and employees. The system was installed in the company in order to provide its employees with an up-to-date tool. In prospect any mortgage loan borrower will be able to become a user of the Company’s information system having access to his (her) loan account through the cash machines or Internet.

Kazakhstan Mortgage Company automated information system was designed based on the “client-server” architecture using the Oracle DBMS and other modern tools of programming. Nowadays, security and reliability of the system is one of the urgent problems of information systems. The information system of the Company fully meets the system data security and reliability requirements of the National Bank of Republic of Kazakhstan. In addition, the administration functional for flexible management of user access to the information and functions of the system was implemented the system core. In general the structure of the system is the following:

Accounting;

General ledger;

Loans and deposits;

Securities;

Fixed assets and intangible assets;

Inventory and warehouse;

Cooperation with external entities by means of exchanging messages similar to SWIFT messages;

Control of a correspondent account in the subsystem of the interbank payment transfer system of the National Bank of the Republic of Kazakhstan;

Personnel records;

Salary;

Report forms;

Debtors and creditors;

Cash transactions.

All above-mentioned components of the system are functioning in real time, i.e. any transactions made in the system are immediately registered in the unified database right and become available for the rest of the users. This approach enables receiving operational information from the system.

The informational banking system also contains the “Currency Control” subsystem which has been installed as a separate module in a few second-tier banks. The “Currency control” subsystem is designed to exercise currency control with regard to the following types of transactions:

-transactions related to transfer of the property right to foreign currency;

-export/import contracts;

-agreements on loans received by the bank customers from outside credit organizations;

-agreements on loans granted by the bank customers to outside credit organizations;

-service agreements (contracts);

-settlements between residents and non-residents in foreign and local currency on the territory of the Republic of Kazakhstan.

In August 2004, Mrs. Maiko Sagyndikova, the Chairman of Kazakhstan Mortgage Company, approved the Plan for Development of the Automated Information System for 2004-2006 was. The existence of such document in a company established not long ago demonstrates the intention of the Company management to keep up with time as today the head of any prospectively developing organization should plan development of the information system in his (her) organization two-three years ahead.

According to the Plan the “Information Processing Center” will be organized in the Company before the end of 2004. This center will support the Company’s real-time electronic interaction with the outer world (individuals, partner banks, Credit Bureau, Kazakhstan Mortgage Insurance Fund, etc.). In 2005 the Center should ensure full acceptance of payments from the borrowers through cash machines, Internet and cash settlements centers of the second-tier banks. In 2005-2006 the Company’s information system is expected to be developed in the following directions:

-Implementation of the credit risk measurement system;

-Servicing the mortgage loans issued under the State Housing Program;

-Development of the electronic integration system with the Government of the RK;