Online Banking System

View With Charts And Images
Online Banking System

CHAPTER 1

1.0 Introduction

The traditional banking system is working well. But there are opportunities to make improvements. And this project of developing an online banking system is an effort to make some improvements over the traditional existing system. Like other online systems, it will let people do their job at any time a day, from any place, and also in an efficient way.

Since the internet has become a popular place to buy and sell goods, online banking services have made their way into most homes. Easier to pay bills, manage money, and transfer money to other accounts, internet banking is a convenient way to handle money. Many employers now have direct deposit, which makes it easier to put money into one’s account. Some banks will allow people to send electronic checks to credit card companies and student loan organizations instead of writing out a check each month. This saves time and paper. Some banks will allow a person to see their account at any time during the day and allow them to make changes that they see fit.

They can transfer money into a savings account, open other accounts, or buy items online. Since many people shop online, they will use their debt card to pay for the items that they purchase. This can make money management even easier. Online banks that do not have traditional branches are also beginning to open on the internet. Without a location to visit, people conduct all of their banking online. [3]

In the future, this may become the trend. Online banking that people will do exclusively on the internet is not out of reach. These days, people can look into investing, opening up other accounts, and taking out loans without leaving their computer. There are many advantages to this form of banking. Money is transferred faster, people can check their balances within minutes, and people will no longer miss bill payments. Online banking services still have a long way to go, but those who use them now say that it is very convenient and easy to use. People will continue visiting their bank and conducting business by talking with others. While internet banking may be more convenient, most people still feel more comfortable speaking with a person rather than typing an email or talking over the phone. [6]

1.1 Statement of the Problem

It has been noted that the application of online database system in banks has been slow because of some security problems. And also, if you want to open an account you have to go to the bank and as a result slow down work and also make transfer and inquiry difficult. As a result, this online database system was designed to unite all banks and it makes general banking transaction easier.

1.2 Objectives of the Project

The objectives of the project are:

i. To design an online database for banks that will provide complementary assistance to bank customers without going to a bank for transactions.

ii. To design a software package that will ensure timely processing and retrieving of information.

iii. To provide a system that is very effective, efficient, secured and reliable.

1.3 Advantages of online banking

• Convenience: Unlike corner bank, online banking sites never close; they’re available 24 hours a day, seven days a week and they’re only a mouse click away.
• Transaction access: If people are out of state or even out of the country when a money problem arises, people can log on instantly to your online bank and take care of business, 24/7.
• Transaction speed: Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds.
• Efficiency: people can access and manage all of their bank accounts, including IRAs, CDs, even securities, from one secure site.
• Effectiveness: Many online banking sites now offer sophisticated tools, including account aggregation, stock quotes, rate alerts and portfolio managing programs to help manage all of human assets more effectively.

1.4 Scope of the Project

The scope of this project has been limited to all commercial Banks. Some of the areas that will be handled by this package include:

1. Logging in and authenticating users
2. Managing passwords
3. Creation of account (Current or Savings) depending on the banks
4. Editing of customers data
5. Funds transfer

1.5 Methodology

We follow Software Development Life Cycle (SDLC) which accepted and recommended by all. SDLC has six steps. Steps are:

1. Project Planning

2. Requirement Analysis

3. Design

4. Development

5. Integration and testing

6. Implementation and Acceptance

Also we follow the Spiral model for software development and our software development team is agile team which is recognized over the world. So our proposed solution has scalability.

Fig: 1.1 Spiral Model for Project Development

1.6 Software development stage

1.6.1 System Analysis

Before starting the development, the analysis of the current state is really necessary. In absence of proper analysis, a software project will fail to satisfy its requirements. Here what analysis should be done and how they should be done, is explained.

1.6.2 Designing the Technical structure

Designing can be defined as the process of applying various technologies and principles for the purpose of defining a device, a process or a system in sufficient detail to permits its physical implementation. And the structure is a coherent and unified technology plan. This emphasizes a framework of processes, interactivity and technologies focused on achieving business goals and objectives. [3]

1.6.3 Software Design

This section describes how the software is developed, and which techniques are used. It involves a brief explanation of the front-end and also of the back-end.

1.6.4 Testing and Debugging

Software testing is the process of testing software in a controlled manner to ensure that it behaves the way it is expected to behave [3].Designing is not the end of everything. It is required to test the software to know, under how much load it can fulfill the client’s expectations, or how can it handle incorrect data. This section is a work on that.

Conclusion

In conclusion, the main objective of the project is to provide assistance to bank customers or users without going to the bank for transaction. This chapter explains the background of the project, the statement of the problem, the objectives, significance and the scope of the project. It also explains the method used in the design and development.

CHAPTER 2

2.0 Analysis

The first step in designing a database is to gain a working knowledge of the current banking system. A banking system is the way a bank performs its duties to meet its goals. For example, a bank has the following banking process in its Banking system: 1. Opening an account that is, saving, current, fixed account etc.

2. Checking of Account balance that is inquiry.

3. Crediting and debiting of account.

4. Funds transfer.

5. Loan

6. Closing of account.

A database will be created in respect to the above banking process, for example at the database for login and account detail tables can be created. Fig 3.2 and Fig 3.3 shows the databases used by the online banking system.

2.1 System Analysis

Fast development in hardware and software, along with the effort of organizations to have a global reach, necessitates business systems that can respond fast and provide high performance. And this necessity and rapid changes in technologies make the task of developing software products more and more difficult. The main cause of failure of any software development projects is the lack of proper communication between the user and the developer. So before starting the development, the analysis of the current state is really necessary. In absence of proper analysis, a software project will fail to satisfy its requirements.

A requirements analysis can be categorized as follows:

· Traditional System Analysis

· Banking Business method analysis

· User necessities analysis

· Analysis System Requirements

· Analysis System Performance Requirements

· Analysis of the Proposed System

· Security Requirements analyzing

2.2 Traditional System Analysis

The current system is a traditional banking system, where clients need to go to the bank to do things like, for checking account, making transactions, canceling any of those. For anything like this, they need to apply to the responsible person and wait for his/her response. If the workload becomes really high, this can take much time. The bank employees inform the clients whenever account balance goes below minimum limit or anything important happens. They do this by sending a mail to the clients by traditional mailing system. The bank remains open only at office hours, so after that clients or bank employees can’t do anything. [2]

2.3 Banking Business method analysis

Business activities are those that contribute to the business of an organization and highlight its competencies. They enable the organization to achieve its goals and objectives. In order to implement business activities, organizations define business processes. A business process is a series of tasks pertaining to the business activities of an organization and includes a sequence. An analysis of business process involves the following tasks:

· Identify the business processes

· Optimize the business processes

2.3.1 Identify the business processes

Here, the business processes are identified as:

· Accepting those clients, who want to open accounts

· Client account management.

· Adding new employees.

· Employee management.

· Making money transactions.

· Generating reports on clients, employees and transactions.

· Communication between the clients and employees.

· Providing different services to the clients.

2.3.2 Optimize the business processes

Optimization has the following steps.

· Identifying inefficient stages in the business process.

· Analyzing those inefficient stages.

· Identifying the changes required.

· Analyzing the impact of changes.

2.3.3 Inefficient stages in the business processes are:

· Clients can’t access their account at any time, from any place.

· It takes too much time to warn the clients if their account balance falls below minimum limit.

· It also takes time to get transaction reports.

· The process of making money transfer and stopping that if necessary is not very efficient.

2.4 Analyzing those inefficient stages

The drawbacks can be created for the following reasons:

· Clients may be outside the city at any time. Then they won’t be able

to access their account.

· Again, as the bank will be closed after office time, it won’t be

possible either to get that service.

· To warn the clients the traditional mailing system is followed. And it

takes too much time.

· To get the transaction reports, or requesting for money transfers, or

stopping anyone, clients need to go to the office and apply to the

appropriate person. And this takes too much time if workload is high

at that moment.

2.4.1 Identifying the changes required.

· Making an online system will help the clients to access their account

information from anywhere of the world, at any time.

· It will also help the bank employees to inform the clients about lack

of money in account.

· Client-administrator communication can be really fast, if e-mailing

system is followed instead of the traditional mailing system.

· Clients can also make money transfers; stop any of them whenever

they want.

2.4.2 Analyzing the impact of changes.

The envisioned system is cost-intensive, but it will increasingly attract more clients and enhance goodwill, resulti.ng in increasing profits. And thus the capital investment made in implementing the proposed change will be recovered in due course.

2.4.3 User necessities analysis

A user is the person who participates in the business activities and interacts with the application. To develop a product it is required to understand the user requirements.

2.4.4 Gathering user requirement information

Information can be gathered by interviewing them and understanding the role of each user in the organization. The information can be gathered about. The tasks are assigned to them

· Whether the system is user-friendly and intuitive. What problems are there

· What features in the current system needs to be modified

· What new features need to be added in the currents system

2.5 Analysis System Requirements

When planning a new system, it is required to ensure that the system meets the requirements of business and the users. It also needs to ensure that the new system will be compatible with the existing system. There are various issues involved in analyzing system requirements [7]. These are:

2.5.1 Hardware requirement

While implementing the new system, it is required to ensure that it can be implemented without affecting the existing hardware and system performance adversely.

2.5.2 Analysis System Performance Requirements

The application to be developed is required to provide high performance in terms of the number of transactions processed. This is to enable a large number of users to use the web site at the same time. If the response time of the application increases with the increase in the number of users, it may result in a user waiting for a long time and checking out other options. This may lead to loss of clientele.

The followings are the performance requirements of the system to be developed. The response time should be minimum.

· The bandwidth of the system should support the number of transaction per time slice.

· The system should be stable and should not fall under increased

workload.

2.6 Analysis of the Proposed System

The new system is proposed to develop as a web site. That will allow the users to access the services from anywhere in the world, if Internet connection is there. The proposed service is shown below, in the form of a data flow diagram. Here, the external entities are:

· Bank Employees

· Bank Clients

The data sources are:

· Users

· Account Type

· Clients

System Analysis

ü Trans

2.7 Context Diagram of the proposed system (Level 0 DFD)

The context diagram of the new proposed system is given below:

Fig: 2.2 Context diagram of the new proposed system

2.8 Data Flow Diagram of the proposed system

Fig: 2.3 Data Flow Diagram of the Online Banking System

2.9 Security Requirements analyzing

The security of the system and data is of primary concern. The two types of security policies that were considered are optimistic security policy and pessimistic security policy. The former one gives protection to only those resources, which have sensitive data and the latter one aims at protection of all resources allowing restricted access to users.

Here, the pessimistic security policy has to be adopted. Bank employees, clients everyone has access to some services/modules.

Here the following roles:

· Administrator

· Bank employees

· Bank clients/customers

Data needs to be protected from unauthorized access by users. There are two security models, which can help here.

2.9.1 Password protected shared security

A password is assigned to a shared resource on the network. To access

the resources, users need to know the password associated to those.

2.9.2 Access permission security method

This method allows specific users to access shared resources. User level

security can be implemented by giving permission to either an individual

or a group of users. When the user logs on to the network, the server

validates the username and password. If the username and password

are correct the user can access the resources.[4]

The web site also needs to be secured from the external. Implementing a

firewall can do that. Though, a firewall

3 Does not protect the system from internal threats

4 It does not examine the contents of a package

5 It does not protect against downloaded virus protected programs.

6 It may block certain services that are required, such as FTP and Telnet.

Conclusion

It is necessary to analyze the current system and the proposed system before starting the development. For this, information gathering about the current system is required. And also a clear understanding of the system should mean a lot to the developers. Otherwise, it would be really difficult to develop an error free system. Operating system and protocols also need to be considered while implementing a new system.

CHAPTER 3

3.0 Design of online banking

Our proposed system is divided into the following layers/tiers.

3.1 User Interface Layer

This layer allows,

· Accepts employee information from bank administrators.

· Also accepts client’s Information from site administrators and bank Employees.

· Accepts transaction requests from clients. Accepts other requests from clients.

· Accepts transaction completion command from administrators and bank employees.

· Sends the user information .to the business service layer.

· Receives information from the business service layer and makes those available to the users.

3.2 Business service layer

This layer does the followings.

· Accepts information from the user interface result.

· Validate those information and sends to the data service layer.

· Receives processed results from the data service layer and sends to

the user interface.

3.3 Data Service layer

This layer is responsible for

· The storage of client information

· The storage of employee information

· The storage of transactions details

· The storage of client’s requests

· The retrieval of data

· The maintenance of data

· The integrity of data

Like any other application, the online banking system accepts input from

users and generates dynamic displays from data sources. To do this, the

following tools and utility software are used.

o HTML

o PHP

o MySQL Server

o Linux Server

3.4 Advantage of MySQL Server

· Scalability and Flexibility

· High Performance

· High Availability

Run high-speed master/slave replication configurations with Row-Based and Hybrid Replication Specialized Cluster servers offering instant failover.

· Robust Transactional Support

· Web and Data Warehouse Strengths

· High-performance query engine. Tremendously fast data insert capability, and

· Strong support for specialized web functions, like fast full text searches

· Strong Data Protection

· Comprehensive Application Development

· Management Ease.

3.5 Advantages of Linux server

· Linux is an open source software product and thus it does not need the high licensing fees that other operating systems do; you can freely download and use it at no cost.

· A Linux website can easily be converted to a Windows website without much hassle. Also, the website can easily be changed as the requirement of the user grows.

· Linux web hosting is very economical as Linux is a free operating system. Usually, only the cost of distribution is borne by the host or owner.

· When the scripting language like PHP, MySQL, or Perl etc. are required for your website then Linux server hosting is the most reliable and cost effective solution for you. Unless heavy load of scripting language, this will not be traceable.

· There are many kinds of databases that run on Linux hosting, but the most widespread most likely among web host providers are mSQL, MySQL.

3.6 Some key features

Features for online banking system:

1. Creating Account: Creating new account for new customer
2. Modifying Account: Modifying account for existing customer
3. Deleting Account: Deleting an existing account
4. Drawing money: withdrawing money from bank
5. User group creation: User group creation maintain security level for our solution
6. User Creation: User is creating for running the solution smoothly and different user will access different features.
7. Users’ role rights creation: Every user has specific roles and rights to access our solution.
8. User auditing: Every report and form will be audited from our software. We can track user from our software

3.7 System Requirements

This is an integral requirement for the overall effectiveness of the operation

of the system. This involves the software and the hardware requirement.

i. Software Requirement

* MySQL 5.0.0

* MySQL Administrator 1.1.8

* MySQL Query Browser 1.1.20

* PHP 5.1.2

* Apache 2.2 x Module

* Browser (for example Firefox, Internet explorer)

* Windows NT/XP/2002 service pack 2 or Linux

* MS – Dos

ii. Hardware Requirement

* Intel® Pentium IV and above.

* Processor speed 1.5GHz and above

* Harddisk minimum of 40GB

* RAM 128MB (512MB recommended)

3.8 Database Design

· Entity List with Attributes.

· Client

§ Acc_No

§ Name

§ F_Name

§ DoB

§ Gender

§ Pres_addr

§ Parm_addr

§ PP_No

§ Bld_group

§ Acc_type

§ Reference

§ Occup

§ Y_income

§ Email_addr

§ Phone

§ Nominee

· Acc_type

§ Acc_type_id

§ Type_Name

§ Com_balance

§ Res_employee

§ Yearly_fee

· Reference

§ reffer_id

§ acc_no

§ Name

· Trans

§ trans_id

§ frm_acc_id

§ to_acc_id

§ trans_date

§ amount

§ status

· Nominee

§ Nomi_id

§ Nomi_Name

§ Relation

§ Nomi_pic

§ Pres_addr

§ Parm_addr

·

Employee

§ Employee_id

§ Name

§ DoB

§ Gender

§ Pres_addr

§ Parm_addr

§ Bld_group

§ Res_acc

3.9 Online Banking System Overview

The Online Banking System application was developed to meet the requirements outline in section 4.2.2 of this system. The Online Banking System has many components of a typical web database application, including:

* Maintainable web pages generated with templates, and populated data from a database.

* User­driven querying and browsing, in which the user provides the parameters that limit the searching or browsing of the database. This includes one component querying

* Data entry and validation.

* User tracking with session management techniques.

* User authentication and management.

* SQL querying that requires table locking.

* Receipt pages that avoid the reload problem.

* Robust error handling with a custom error module.

* Email and browser alerts.

3.9.1 Functional Overview

The Architecture of the Online Banking System is shown in Fig 3.3. It shows the flow of events.

3.9.2 Banks

There is a huge of banks is contained the home page. The script index.php contains the following bank links namely:

This is provided by the authpassword.php and changepassword.php scripts. To change PIN, users are required to enter their current four (4) digits Pin to reduce the risk of an unauthorized change, and then enter the new PIN twice to minimize the chance of typing error.[5]

3.9.3 Authentication

The authorization scripts are loginform.php and logout.php. The loginform.php script produces a form for user to enter their personal details and a four (4) digit PIN.

3.9.4 Application Module

The application has four separate modules that are:

­ Banks /Customer Management: this includes opening of account and editing of personal details.

­ Crediting, Debiting of Account and transfer of funds.

­ Managing Account.

­ Authentication: includes logging in, logging out and changing passwords.

The application also has a set of common components, including authentication functions, a custom error handler, validation functions, a custom error handler, validation functions, and general purpose functions and constants. [9]

The architecture is given below:

Fig: 3.1 Software Development Architecture

3.10 E/R Diagram of proposed system

The E/R modeling is the top down approach. It involves identifying entities, relationships, and attributes, drawing the E/R diagram and mapping the diagram to tables. The E/R model is based on the perception of the real world that is made up of a collection of objects or entitles, and the relationship among these. The components of an E/R model are:

Fig:3.2 E/R Diagram for the proposed system

3.4 Database Table Design (Relational Schema)

Fig: 3.3 Table with the Relationship among them

Conclusion

All the necessary techniques and tools are decided, and used to develop the

banking system. Now what is required is, to test and debug the system, and

making necessary changes depending on the results.

REFERENCES

[1]. Bob Kaehms and Ric McGredy (2002) “Programming PHP” O’Reilly & Associates, Inc.

[2]. Comer, Douglas E. “World Wide Web.” Microsoft® Encarta® 2009 [DVD]. Redmond, WA: Microsoft Corporation, 2008.

[3]. David Sklar, Adam Trachtenberg (2002) “PHP Cookbook” Publisher O’Reilly & Associates Inc.

[4]. Hugh E. Williams and David Lane (2002) “Building Effective Database Driven Websites, Web Database Application with PHP and MySQL” Second

[5] Rasmus Lerdorf and Kevin Tatroe(2002) “Programming PHP” O’Reilly & Associates, Inc.

[6] Steve suehring (2002) “Mysql Bible” Published by wiley publishing, Inc.

[7]. Wan, H., Chen, F.F., & Saygin, C. (2008). “Simulation and Training for lean implementation using web­based technology. International Journal of Services Operations and Informatics”, 3(1). 1­14.