BANKING MANAGEMENT SYSTEM

INTRODUCTION OF BANKING MANAGEMENT

SYSTEM:
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The banking management system sector has seen some greatest expansion in
the past year and with the number of customer interaction increasing the day
it has to tally all the records in the database.

When it comes to managing the money or valuable assets it automatically

becomes the crucial matter for the service provider and the client as well for
the trustworthiness.

The banking management system is one of the most complex systems

because the things it covered under the roof for the transparency among the
customers. From managing the customer information, account information to
the transaction happening every minute or second.

It does not only preserve the details of the transaction and other information
but generates the report to further banking functions.

In this banking management system, there are many operations which are
automated which ease the work for the working of the bank.

Which reduces the requirement for the manual labour and the automated
tasks will be error free as they will only work as they are programmed
whereas doing work manually there is always a possibility of human error.

The major modules of this system are as follows:

Branch (Bank)

Customer

Accounts

Transactions
Employees (Bank)

As it simplifies most of the manual task for the bank but there is a major
concern over the security of the data and assets of the customer so it is very
important to keep up with security features and tested each module carefully
while deploying.

This digitization of the bank will help the bank in every aspect of the growth.
It will not only make the work easy but significantly improve the speed of
work as there are no physical files or data sheets will be there to manage
everything will be managed logically with the system and machine.

The information about the customer or if the customer wants to know their
information it will be just some clicks away and with an increase in
transparency between the customer and fast service it will automatically get
the trust of customers.

EXISTING SYSTEM OF BANKING MANAGEMENT

SYSTEM:
The existing bank system is slow as every task is being performed by the
human being and comparing the computer task speed with a computer is not
fair.

The complexity of this system is increased when their increase in a number of

customers and with that there will be number transactions will be performed
now everything needs to log in a file for the reference in the future which is
simply not the kind of scenario we need at this time.

Some other drawbacks of the existing system:

Less security of customer and bank information.

Require more physical work and man power.

All the manual entry and editing will take more time.

No level of clearance for the different level of employees.

Safety of paper documents from the disaster.

No backup of the information.

As the by looking at disadvantages these are pretty serious for any banking
system as they are capable of bringing down the whole system. By
digitalization in the banking system, it will not only achieve the goals of it
and also will give some benefits like less manual calculation will be required.

Some improvements by executing the proposed system:

More secure information as it will give a layer of security of authentication

and authorization.

Required very less man power.

Simplify the problem of editing.

Maintain the clearance level by the hierarchy.

The information will be secure from the different type of disaster as there will
be an automatic backup system for the customer and bank information.

Maintain data integrity Validate the manual calculations avoid the calculation
error.

Safeguard the data accuracy.

More reliable and efficient.

More user-friendly interface.

MAJOR MODULES OF BANKING MANAGEMENT

SYSTEM:
Bank Branch:
Almost all bank will always have multiple branches expanded over the
multiple cities. To manage those branches throughout the system we have
this module it will keep the manageability of the branches and provide the
unique identity to every branch.

Every branch will have its unique identification number and a branch name.
From this module, we can easily identify the branch location and the other
information like employees working at that branch.

For the communication purpose, there will a permanent phone number and
then there is a manager who will manage the whole branch.

All major decisions for the branch will be taken by the manager and the first
point of contact person for the head-office will be a manager.

The branch module will also help bank find out about their performance at a
different location so they evaluate on this improve the customer service
quality.

There will always some kind of special benefit for the people of the home
branch.

Customer:
These are the main source of the business for the bank. The number of the
customer will improve the position in the market. There are different types of
the customers from the common people to the business man and everyone has
an account on the priority of they require it. The different types customers
are:

Individual Account holders

Joint account holders

Partnership firm holders

Limited liability companies

Clubs and Associations

Trusts
These are the persons or group which can have the account on the bank for
their individual or business or non-profit work.

Account:
very customer will become a customer when they open an account in the
bank start depositing the money or take some other service. Account enables
the customer to take advantage of the facilities provided by the bank.

Every customer has their unique account number and the bank will identify
you by only that account number. The account number will be same for all
the branch for that particular bank.

This will hold the balance in account, interest which is provided by the bank
to that customer and if the customer is active this will be defined by the last
transaction done by the customer for ex.

The saving account usually remains active for 6 months with no transaction
after that it needs to be reactivated. Further the types of account a customer
can have are:

Saving Accounts

Current Account

Checking Accounts

This is some types of accounts users can have according to their use and
priority. All different types of account have their own benefit for the
customer.

Some other things a customer can opt are a locker or fixed deposits.

Transactions:
Every time an account holder perform some activity on the account it will be
updated through transactions this is like logs but only showing the required
details.
Any time a customer makes any changes in an account like pay or deposit it
will be through transactions. This help in keeping the track of cash flow in
the bank.

Also, help in managing the correct information if there is some data loss to
the bank side or if there is any query at the customer side.

Bank Employees:
Even after all the digitization of the bank, there will always be a requirement
of an eligible employee for the correct management of events.

Employees are the backbone of any bank and to manage the number of
employees we have this module. Their information will be kept separately
from the customers.

All the employees will get their unique employee id similar through all
branches of the bank. They will have a different level of clearance to get
information.

All will be provided with secret authentication details required to log in on

their respective systems to work so no other person can interfere with their
working ground.

It will give the idea in which department they working and what is their
designation while working there.

ER DIAGRAM OF BANKING MANAGEMENT SYSTEM:

An entity relationship diagram (ERD) represent the relationships among
entity sets stored in a database. An entity in this context is a component of
data. We can say that ER diagrams illustrate the logical structure of
databases.

At first, peek an entity relationship diagram looks similar to a flowchart. It is

the different symbols, and the meanings of those symbols, that make it
unique.
In the Banking management system, we take the following entity shown in
the figure below:

Bank_branch:
This entity contains the details about the location of the branch. This will not
help management but separate the employee from branch to branch and
customers.

The attributes of this entity are:

Branch_id:
This will be the primary key for the entity. This will help to search and
sorting uniquely in the table of branch entity.

Branch_name:
This attribute will help in verifying the identity of the branch if the branch is
led to confusion.

Branch_city:
It will contain the city where the branch is located.

Branch_country:
This attribute will hold the name of the country.

Branch_phone:
This phone number will be helped in communicating with the branch. This
number is only for the banking use not for public use. For the public, there
will be a single number at all the bank branches.

Manager_id:
This will be the Employee_id of the person who is managing the branch. To
identify the manager we can take this in and search in employee table by
joining the Departments table where the designation is a manager.
Employee:
The employee entity contains all the information about the employees
working in different branches of the bank. This will enable them to manage
the employee data easily.

Searching the information will just a few clicks. It will have all the necessary
attributes required for the employer.It has the following attributes:

Employee_id:
This will be the primary key for this entity. It will help in identifying the
particular employee easily. This gets useful when two employee has a similar
name like conditions.

Employee_name:
This is required for the verification purpose. Usually on government issued id
cards it has a name as identification.

Employee_address:
In any case when the employee address needed for example sending any
email or documents at the employee’s residence.

ER DIAGRAM OF BANKING MANAGEMENT SYSTEM:

Employee_phone:
It is good to have employee’s contact number to have immediate
communication

Employee_email:
It is required when a bank needs to make an announcement. So, they will
select the employees emailed and simply broadcast the announcement.

Branch_id:
This will help to identify at which branch the employee is working currently.
We can find the branch details from Bank_branch table.

Department_id:
The department will have a different id for manager, clerk and other
designation so we can find the job profile of the employee.

Account_number:
Every employee will have the account in the bank this will give their account
details.

Department:
This entity will help in keeping the track of the job profile of the employee.
Each profile will be assigned to one department in which will have the details
about their job.It will have the following attributes:

Department_id:
This is the primary key for the table it will help identify each job profile
uniquely in with the department.

Department_name:
It will contain the name of the department to avoid confusion to clear and
avoid the confusion from the id.

Head_of_departemnt:
It will take the employee id as a value which will define that a particular
person/employee is the head of that department.

Designation:
To know about the designation of the employee like if the employee hold
manager or HOD or any other designation.

Customer:
This entity of banking management system has the details of the customer. It
will not contain the banking details but personal details of the customer
which will link to the account by the account number of the customer.

After opening an account every user will get one unique account number.

It has the following attributes:

Customer_id:
This is the primary key the particular table. It will be used to find the
customers personal details.

Customer_name:
The customer will be for the document verification for the account opening.

Customer_address:
To send any envelope to the customer’s residence or any contact to the
address.

Customer_phone:
To communicate with the customers over the phone.

Customer_email:
To send any offer from the bank to the customer or formal communication
with the customer.

Branch_id:
This will tell about the home branch of the customer. Like where the user has
opened his/her account in the bank.

Account_number:
This will link the account to the user’s banking details like the transaction or
the balance of this account holder.

Accounts:
This table will contain all the banking account details of the customer. The
balance and type of account such type of information will be contained by
this entity.It has following attributes:

Account_number:
This is the primary key for the particular table. It will be linked with the
customer table’s attribute of customer id. Each customer id will have a
separate account number.
Branch_id:
To identify the location of the branch where the customer has opened the
account.

Customer_id:
This is required to link the correct account number to particular customer id.

Account_type:
This will give the idea about the type of account the customer is holding like
it could be saving or current or something according to that interest will be
calculated.

Balance:
How much money a customer has left in the account.

Interest_rate:
The interest is given by the bank to the customer for crediting the money into
the account.

Account_status:
If the customer’s account has been idle for a particular time then it should be
disabled. The customer should make a transaction to keep their account
active.

Transaction:
This gets generated every time customer update or makes changes to account
by anyway. This act as a log but for or transfer of money and other
changes.This entity contains the following attributes:

Account_number:
The person’s account number who has made the changes in the account.

DateTimeStamp:
The exact date and time to save the information and roll back if there is any
error occur that’s why the exact time needs to be saved.

Employee_id:
It will contain the id of the employee who is responsible for looking at the
particular account so if there is any unwanted thing happen they can contact.

Credit/Deposit:
From this attribute, it will be clear if the user has credited the amount or
debited the amount from that transaction.

Loan_id:
It will create loan is from this attribute if the user ever applies for a loan this
will hold those details.

Transaction_type:
This value will be held the value that how the transaction has been made if it
was an online mode, bank credit or ATM deposit etc.

Loan:
This entity of banking management system is for the customer who has
applied for the loan from the bank. This will hold the details of the loan for a
particular account number. If the customer does not have any loan it will
have null values for the particular account.It will have the following
attributes:

Load_id:
This is the primary key in this table. This will be linked with an account
number so direct information can be fetched if required.

Account_number:
To link the customer details with the loan id.

Interest_rate:
The rate of interest bank is charging on the loan given to the customer.

Duration:
The duration of the loan that how much time it will take to complete when
the user starts to credit the instalments of the loan.

Start_date:
From when the instalment started to credit the account.

Due_amount:
It will hold how much the amount has been credited and how much is left
more.

“Banking Management System ” keeps the track of day and time’s tally
record as a complete banking process. It can keep the information of Account
and Search the transaction, Transaction report, Individual account opening
form, Group Account.

It displays Transaction reports, Statistical Summary of Account type and

Interest Information. This provides all time of service to the customer
provided by the other banks.