DESIGN AND IMPLEMENTATION OF ONLINE BANKING SYSTEM

ABSTRACT

This project was aimed at making depositing, withdrawing and other bank activities easier and convenient in the 21^st century. Haven realized the competitiveness and complexity of the environment in this age of ICT, there is indeed a need for online banking software to overcome the growing challenges been faced by the banking sector.

Analysis study was first considered to ascertain the cost, its efficiency level and its merits over the old way of banking. Next is the flowchart, which preceded the computerized interface design.  Design was then computerized, which is the first step in achieving the purpose of this project. Each error and challenges were resolved through the use of debug feature of the program used.

The software was developed using Visual Basic Application (VBA). This language was chosen because of its way of implementing Microsoft’s event driver programming language of visual basic 6, and its associated development environment (IDE), which are built into most Microsoft office application. VBA also enables building user defined functions

In choosing the database, which is expected to serve as a backend backup for a project like this, MySQL was therefore considered.

MySQL is an ideal solution for relatively datasets that involve collection of online data. As an online means of data storage, MySQL is well suited for the collection of data in software such as this.

TABLE OF CONTENT

                                                                                                Pages

Title page                                                                                           i

Certification                                                                                                ii

Dedication                                                                                         iii

Acknowledgement                                                                             iv

Abstract                                                                                             v

Table of Content                                                                                vi

CHAPTER ONE

1.0     Introduction                                                                                     

1.1     Background of the study                                                         1

1.2     Statement of problem                                                               3

1.3     Scope of the study                                                                   4

1.4     Aim and objectives                                                                   4

1.5     Significance of research questions                                           5

1.6     Limitation of the study                                                             6

1.7     Methodology                                                                            6

CHAPTER TWO

LITERATURE REVIEW                                                          

2.0        Introduction                                                                            8

2.1     Definition of related terms                                                       9

2.2     The view on electronic banking                                               11

2.3     Brief profile of fidelity bank plc                                                12

2.4     The entry of Nigerian banks into electronic banking                15

2.5     Threats of cyber-crime on the Nigerian banking premise         16

2.6     The regulatory challenges                                                        18

2.7.0  Electronic banking profitability and efficiency                         21

2.7.1  Bank customer relationship                                                    21

2.7.2  Operation of financial institution                                            22

2.8     Major issues                                                                             22

2.8.1  The internet as the information superhighway                        23

2.8.2  Electronic commerce                                                                24

2.9     Cryptography concepts fore-banking                                       25

2.9.1  Electronic Encryption                                                              25

2.9.2  Authentication                                                                         27

CHAPTER THREE

SYSTEM ANALYSIS AND DESIGN

3.1Introduction                                                                                 29

3.2Data flow diagrams                                                                      29

3.3     Database design of the system                                                 35

CHAPTER FOUR                                                           

SYSTEM IMPLEMENTATION                             

4.1     Software                                                                                  39

4.2     Programming language used and justification                         39

4.3     System description                                                                  40

4.3.1  Account information                                                                41

4.3.2  Tools and technologies used                                                    42

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION                   

5.1     Summary                                                                                          45

5.2     Conclusion                                                                              45

5.3     Recommendation and future work                                          46

REFERENCE                                                                                   47

CHAPTER ONE

INTRODUCTION

1.1.      Background of the Study

The new millennium brought with it new possibilities in terMY of information access and availability simultaneously, introducing new challenges in protecting sensitive information from some eyes while making it available to others. Today’s business environment is extremely dynamic and experience rapid changes as a result of technological improvement, increased awareness and demands Banks to serve their customers electronically. Banks have traditionally been in the forefront of harnessing technology to improve their products and services.

The Banking industry of the 21st century operates in a complex and competitive environment characterized by these changing conditions and highly unpredictable economic climate. Information and Communication Technology (ICT) is at the centre of this global change curve of Electronic Banking System in Nigeria today. (Stevens 2002).

Assert that they have over the time, been using electronic and telecommunication networks for delivering a wide range of value added products and services, managers in

Banking industry in Nigeria cannot ignore Information SysteMY because they play a critical impact in current Banking system, they point out that the entire cash flow of most fortune Banks are linked to Information System.

Virtually almost all Banks in Nigeria have a web presence; this form of Banking is referred to as Internet Banking which is generally part of Electronic Banking.

The Internet allows businesses to use information more effectively, by allowing customers, suppliers, employees, and partners to get access to the business information they need, when they need it. These Internet enabled services all translate to reduced cost: there are less overhead, greater economies of scale, and increased efficiency. E-Banking’ greatest promise is timelier, more valuable information accessible to more people, at reduced cost of information access. With the changes in business operations as a result of the Internet era, security concerns move from computer labs to the front page of newspapers.

Application service providers (ASP) and exchanges offer especially stringent — and sometimes contradictory — requirements of per user and per customer security, while allowing secure data sharing among communities of interest. E-Banking depends on providing customers, partners, and employees with access to information, in a way that is controlled and secure. Technology must provide security to meet the challenges encountered by E-Banking. Virtually all software and hardware vendors claim to build secure products, but what assurance does an E-Banking have of a product’s security? E-Banking want a clear answer to the conflicting security claiMY they hear from vendors. How can you be confident about the security built into a product? Independent security evaluations against internationally-established security criteria provide assurance of vendors’ security claiMY.

Customer expectation, in terMY of service delivery and other key factors have increased dramatically in recent years, as a result of the promise and delivery of the internet. Even after the “dot –com crash” these raised expectations linger.

The growth in the application and acceptance of internet-driven technologies means that delivering an enhanced service is more achievable than ever before, however it is also more complex and fraught with potential costs and risk. The internet introduces customers to a new perception of business time as always “on available 24/7, and demanding an urgent and rapid response. The challenge for managers is to reconcile their business and their own personal perceptions of time with the perceived reality of internet time. The internet has decisively shifted the balance of power to the customer.

The internet is revolutionizing sales techniques and perceptions of leading brands, and the internet is intensifying competition in all its forMY.

Banking are continuing to use the internet to add value for their customers; but in order for this to work effectively - maximizing opportunities, reducing risks and overcoming probleMY, an E-Banking strategy is required as an impact.

The growth of the Web and Internet as new channels, the growth in their use by customers, the growth in their use by customers, and the floor of companies entering the market, presents a series of key challenges to companies. It is easy and cheap to put up a website. But to create an environment delivering effective service on the Web to a significant proportion of your customer base requires an E-Banking strategy.

Electronic Banking offers different online services like balance enquiry, request for cheque books, recording stop payment instructions, balance transfer instructions, account opening and other form of transitional Banking services.

1.2 STATEMENT OF THE PROBLEM

Part of the daily operations of financial institutions, with banks in particular, entails interacting hugely, on a physical basis with humans – who are their customers. These transactions are widely varied. This has, primordially, created a lot of chaotic situations in the banking halls. In a lot of these cases, customers have had to abandon their primary purpose of visiting the bank out of frustration. This dejection has led to customer’s turn- over rate at banks hitting a geometrically high rate.

Hence, the introduction of electronic or wireless payment to banking industry which has posed a lot of security concerns. Though these devices have their internal security set ups there is still need to improve on the security arrangements in order to secure customers fund and other vital information.

The existing securities are basically built on two aspect of information/fund protection components i.e.

 1. What you have (Card)

 2. What you know (PIN/Code)

The third component, what you are (Biometrics) has not been exploited to further to serve as additional security.  The reason for this may not be farfetched, because the concept of wireless transactions is to make it available to all customers at affordable cost and convenience.

1.3 SCOPE OF THE STUDY

This study covers the processes, procedures, and application of Internet and Mobile Banking (Online Banking), with underlying security consideration. Specifically given the defined time space of completion of this work, this study tends to have as a major scope and achievements the following:

1.      The design and development of a database to serve as an repository of data required for necessary transactions and reporting in the system.

2.      The design of appropriate forMY, both for input of requisite data and output of necessary information.

3.      Generation of various forMY of reports, as would be deemed necessary for different cadre of management.

4.      Addition security features/checks to ensure and authenticate the veracity of whoever is making use of the system, thus providing the necessary audit trail.

5.   Ensuring that all the above listed are both deployed over the internet, as well as, through mobile telephones

1.4 AIM & OBJECTIVES

The aiMY and objectives of this project work is to design and develop a more secured Internet/Mobile network system that will be able to realize some of the steps and processes involved in the procedures that will reduce or eliminate fraudulent activities via electronic payment system. This additional security will be demonstrated through effective checks on:

(1)    Customer’s online and mobile information update.

(2)    Transfer of funds through internet and mobile means between customers that use the same bank.

(3)    Provision of a facility that will enable customers to check their account balance over the internet, also, through their mobile phones.

(4)    Placing a new cheque book order over the Internet or mobile phones.

(5)    Checking for information relating to loans request

With the tasks/functions, stated above, being an integral part of the operations and processing capacity of banks, errors may be minimized, or in its utmost completeness, eradicated entirely.

The human, as well as, material resources physically present will be adequately channeled to meet some other needs. Customers, also, will be afforded some control and close to real-time response to their enquiries and demands for certain transaction with the bank.

1.5. STATEMENT OF RESEARCH QUESTIONS

Since the release by CBN, August 2003 and the subsequent policy on the guideline of

Electronic Banking system in Nigeria,

One of the questions that currently being addressed is the impact of electronic Banking on the traditional banking players; there are two views that are prevalent in the Market. The controversies that the internet is a revolution that will sweep away the old order, argument in are as follow:

·        Electronic Banking transactions are much cheaper than branch transactions. Banks are easy to set up with lots of new entrants. ‘Old world’ systeMY, cultures and structures will not encumber these new entrants; instead they will be adaptable and responsive. Electronic Banking gives consumers much more choice and consumers will be less inclined to remain loyal.

·        Deposits will go elsewhere because these banks will have to fight to regain their customer base. There would be increase in their cost of funds, making their businesses less viable.

·        Portal providers are likely to attract the most significant share of banking profits.

·        Traditional banks will find it difficult to evolve; they will be unable to obtain additional capital from stock market.

1.6. LIMITATION OF THE STUDY

In view of the technicalities involved, it would be unrealistic to assume that all necessary facts have been gathered in the process of the study. Information gathered is limited to those accesses and made available by the respondents and also those gathered from end users. However, the impacts of this limitation will be reduced to the barest minimum.

1.7 METHODOLOGY:

           Often times, new computer systeMY replace existing manual systeMY, and the new systeMY may be replace after sometime.  The process through which this change is effected happens in series of stages and the whole process is called the “System Life Cycle”.

A new system life cycle normally triggers some results such as the perception of a business need, failure or limitations of system causing dissatisfaction or heightened awareness of modern development.  Whatever reason, it is the management who will initiate the selection of a project for preliminary study of investigation.

The stages involved in system life cycle are:

·        Preliminary Survey

·        Feasibility Study

·        Investigation and fact recording

·        Analysis

·        Design

·        Implementation

·        Maintenance and Review

These stages will be examined in later chapters.

Methodology is simply the process through which structured system analysis is carried out i.e. the different methods involved in system design.

·           Providing a recommended series of task to be carried out so that the Methods fit together as a whole.

·           Leading theMYelves to some degree of automation and the corresponding controls that go with providing a number of well-defined and complementary in which to represent information about importance of the system aspect.

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