Professional Documents
Culture Documents
1.0 INTRODUCTION
The main purpose that banks have been serving since their inception is
keeping our money safe for us. While keeping our money safe, they also let
us earn a certain amount of interest on the money deposited with them.
Traditional banks have been doing this, and internet banks continue the
same function. The only difference is in the way the transactions are made.
We all know about internet banking and most of us use it quite often as well,
but few of us actually understand about the history of internet banking and
how it all came out. Knowing the history of internet banking can be incredibly
useful, especially since it will allow us to have more respect for the little
things that we take for granted.
Computers themselves have really come an enormous way since their initial
establishment, as the earliest electronic computers were so large that they
would take up the entire area of a room, while today some are so small that
they can hardly be seen at all.
In today's world, computers play an incredibly large role in the way the world
exists in general, and the majority of tasks could actually not be completed if
not for the use of computers. Although there are certainly some areas and
jobs that cannot yet be completed solely by computers and which thus still
require actual manpower, for the most part, computers have helped to make
life significantly easier, productive, and more convenient for us all.
Internet banking has been around for quite a few years now, but has really
only become prominent over the past year or so in particular. Internet
banking offers an array of different advantages to the user, including:
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account balances and history including year-to-date information, the ability
to transfer money from one account to another and to payees for bill
payments, check history, reorders, and stop payments, check credit card
balances and statements, complete online loan applications, secure
interactive messaging with staff, and much more.
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1.2 PURPOSE OF THE STUDY
The aim of this project is to develop a secured online banking system with
the following objectives:
This will cover the benefits derived in using internet banking and it’s
fundamental.
Many consumers today are turning to the ease and convenience of Internet
banking to take care of their financial needs. With the new levels of access
made possible by the Internet, people can now check the status of their
finances with the click of a button.
The history of Internet banking has evolved from simply allowing customers
to check balances online, to now being able to trade stocks and bonds from
the comfort of their own home!
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Online banking services have grown from simply allowing customers to check
balances, to trading assets. Today, banks like ING Direct are functioning
entirely online, with no brick and mortar building. With the costs saved by
requiring fewer employees and the lack of facility expenses, these virtual
banks can often offer higher interest rates than their traditional counterparts.
Internet banking gives you the power to control your finances completely.
You are no longer tied down to managing your money during the hours the
bank is open. If you want to transfer a balance after business hours, you can!
If you have access to the Internet and have a number of recurring monthly
bills, then you should use Internet banking to make your life easier.
Today, online banking services are quite varied. One of the best features of
online banking is putting the user in control. The user controls all bill paying,
transfers, and investments from home.
There are other features, though of online banking. One of these is increased
accessibility to your account information. Users of online banking services
can access their account information from anywhere in the world! This is
particularly helpful for businesses. Internet business banking is becoming
increasingly popular, as businesses are becoming more global in their reach.
Now business people can access their accounts, even when on overseas
business trips. Business Internet banking is extremely popular for this
reason.
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The scope of this project is limited to the activities of the operations unit of
the banking system which include opening of Account, Deposit of funds,
Withdrawal of funds and transfer.
1.5 METHODOLOGY
WEBTRUST will contain self explanatory hyperlinks that customers can click
to make any request or perform a task.
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If a customer clicks on account opening links, he is taken to page where he
fills a form and clicks the submit button if he is through. A successful filling of
the form gives a response that confirms the customer account is open and
activated. Thus such a customer can receive money into such an account
through funds transfer. Account details are sent by the bank to the
customer’s email box.
Registered customers or Account holders of the bank can now login using the
account details posted to their email box to login before they can perform
financial transactions. The system is secured such you cannot operate
another mans account even if you knew his account details because a new
transaction number is always sent to a customer for each login. This
transaction number is what will be used to authenticate any transaction per
time.
1.7 DESCRIPTION
www.webtrust.com Internet
/ JSP/Servlet
intranet
Home Services Contact (Application Database
logic)
…
.
WEBTRUST
Server
(Web server)
Front-end
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Middle-tier Back-end
Language: Java
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CHAPTER TWO
LITERATURE REVIEW
The emergence of electronic commerce over the past decade has radically
transformed the economic landscape. For developing countries, the digital
revolution offers unprecedented opportunities for economic growth and
development, a case study of Pakistan.
“In the 21st century there will be a lot of banking, but there will be no banks.
The term "online banking" or "internet banking" covers both computer and
telephone banking. Using computer banking, a customer either uses his
computer to dials directly into its bank's computer or gains access to the
bank’s computer over the internet. Using telephone banking, the customer
can controls its bank accounts by giving the bank instructions over the
telephone. Both computer and telephone banking involve the use of
passwords which give access to the customer’s accounts.
Many banks also have the facility for someone to set up, amend or cancel
standing orders. Internet banking also allows payments to be made to the
customer, i.e. acceptance of credit card donations. Most people that use
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internet banking will also continue to use some of the elements of more
traditional methods of banking, such as a cheque book.
• In China, while banks issue credit cards and while many use debit
cards to draw directly from their respective bank accounts, very few
people use their credit cards for online payment. Cash-on-delivery is
still the most popular mode of e-commerce payment. Nonetheless,
online payment is gaining popularity because of the emergence of
China pay and Cyber Beijing, which offer a city-wide online payment
system. (Zorayda Ruth B. Andam, 2003).
• The Nigerian economy is largely cash-based with a lot of money
residing outside the banking system. To a greater extent, this has
hindered the participation of her citizens in e-commerce where e-
payment is the acceptable means of settling transactions. (Ayo
Charles. K and Babajide Daniel O, 2006). In Nigeria, the modernization
of the payment process started with the introduction of the MICR. This
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was followed by the establishment of ATMs for cash dispensing,
account balance enquiry and payment of utility cheques. In 1993, the
Central Bank of Nigeria (CBN), introduced the use of payment cards
(smartcard) and paper-based instrument. Similarly in 2004, CBN
introduced a broad guideline on e-banking which included the
introduction of ATM, e-money products such as credit and debit cards
(Salimon, 2006).
• The Turkish banking sector has not only grown in numerical terms it
has also expanded in terms of technology and the range of new
services offered to its local and foreign customers. The sector has been
viewed as the leader of technological innovations in Turkey.
Although a lot of work and progress has been made in electronic banking by
these countries, but these nations are still cash based economies largely.
There needs to be a regulatory framework and awareness among the banks
and the consumers about the benefits and drivers of such systems.
Fast adoption of electronic form of banking is the need of the day for these
developing nations to survive in today’s hypercompetitive global world.
Just like many other developing countries, electronic banking initiatives are
being worked on in Pakistan to exploit the technological benefits that can be
reaped along with many other e-readiness initiatives being taken.
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Pakistan has been among the late entrants into e-banking. The first ATM
switch was setup in 1999 and in2000 Internet Banking was introduced. (Ali
Ahmad, 2006)
The Ministry of Science & Technology has been taking number of measures
to promote E-Commerce and E-Banking in Pakistan, Technology helps to
catalyze efficiency in the provision of financial services and ultimately in
determining the winners in the intensely competitive financial markets of the
future.
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The use of ATMs and e-banking products is gaining currency and almost all
banks have established networking of their ATMs with the interconnectivity
of switches. Better outreach offered by ATMs will enhance the customer base
and offer more alternatives and choices to customers. Further development
on e-banking and internet banking will open up new avenues like on-line
banking. Among others, the relatively smaller size banks will be able to
compete with the large banks and retain their market presence by using
technology more effectively.
A few of banks offer mobile-phone banking, where customers can pay utility
bills using their mobile phones. The National Institutional Facilitation
Technologies (NIFT), an
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lead by re-introducing credit cards to the Pakistani mass market in mid-
1990s. (State Bank of Pakistan, 2003)
This was followed by the domestic banks, which introduced ATM facility in
late 1990s. However, this delayed entry in e-banking may be largely
explainable by regulatory hurdles, higher start-up costs, 38 ongoing banking
sector reforms, and lack of technical skills.
2.4 METHODOLOGY
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A questionnaire was developed to gather data from the banking consumers,
which consisted of two sections to which there were 145 respondents
forming a “Non Probability Sample”. The sample data consisted of 34 Online
Banking users while 111 were non-users.
The majority of the respondents were male (83.3%), young (73.7 %) were
between the age of 18 and 30. 53.3 % of the respondents were employed,
36% were students and belonged to the income class between RS 10,000
-20,000.
For the purpose of this project, two commercial and four national banks had
been analyzed.
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Table 2: Most important reasons for opening an internet account
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Table 3: Reasons for not opening an online bank account
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Frequency Percentage Agreeing
Better rate & lower
service charges 79 71.2
Bank familiarity 82 73.9
Bank location 73 65.8
Security of transactions 79 71.2
Convenience 83 74.8
Quick service 81 73.0
Variety of features & 79 71.2
services
2.6 CONCLUSION
The findings reported here clearly indicate that at macro level whereby due
to globalisation and a demanding lifestyle, there is a strong need for having
one stop online banking accounts. The analysis therefore shows that the
level of electronic readiness and participation is rather low for a population of
approximately 169 million in Pakistan.
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CHAPTER 3
This chapter deals with the analysis and design of Online Banking,
application of new system, the hardware and software requirements for
implementing the system and stating the choice of the language used.
1. input
2. processing
3. Output.
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Input Processin Output
g
3.2 Analysis
System analysis is a logical process; the objective of this stage is not actually
to solve the problem but to determine what must be done to solve the
problem. The basic objective of the analysis stage is to develop the logical
model of the system using tools such as UML (Unified modelling language).
First let’s take a look at the existing and proposed system.
Considering the stress and time taken to go to bank and do transaction. The
development of a well structure and secured online banking system will allow
customer to perform objectives like, creating a banking system that is easily
accessible by customers from the comfort of their homes, offices 24/7.
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Reduce the flow of human traffic and long queues at banks; Promote efficient
and effective banking for the banks by focusing on those services that still
require physical presence at the banking hall. Provides intra-bank funds
transfer services to their customers. Keep a detailed log of customer
transactions with the bank on his account. Generate the statement of
account of a selected period BANKING
ONLINE of time for(WEBTRUST
customers. And
BANKProvide a customer
relationship services PLC)
REGISTER
MANAGE
CUSTOMERS
SIGN IN
System
MANAGE
OPEN AN
ACCOUNTS System
ACCOUNT
20 Customer
OPERATE
MANAGEAN
Customer TRANSACTION
ACCOUNT
3.3.1 MAIN COURSE OF EACH USE CASE.
Pre-condition: None
1.3Click Login
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1.5Click submit button
Pre-condition: None
Pre-condition: None
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1.2Send details to customer inbox
Pre-condition: None
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10.FUND TRANSFER (Actor: Customer)
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CHAPTER 4
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IMPLEMENTATION
1. The Hardware
2. Application Software.
3. Operating system
Too many packages should not be used, as very few systems may have all
those packages installed due to memory problem. Thus, the compatibility of
the system developed will get reduced.
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Language: Java
Implementation
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ODBC Data Source Administrator Dialog Box
1. To Create a DSN, type the name of the data source in the name text
box of the Create a New Data Source to SQL Server dialog Box as
shown in the following figure.
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2. To select the required SQL Server select the name of the SQL Server
from the Server drop down list and click the Next button.
3. To indicate how the SQL Server should authenticate a login ID, select
with the SQL Server authentication using a login ID and a password
entered by the user option. The login ID and the password entered by
the user option. The Login ID and Password textboxes becomes active
as shown in the following figure.
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4. Type the username and password in the text boxes and click Next.
5. To enable the database drop-down list, select the change the default
database to options.
6. To select the required database select the name of the database from
the drop down list and click Next button.
7. Select the language for the System messages to English and click
Finish.
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8. The ODBC Microsoft SQL Server Setup dialog box appears with all the
details about the created DSN as shown in the following figure.
9. To test the created DSN for the connection with the database, click Test
Data Source button, the message regarding the connectivity test
appears.
10.Click Ok to save the Configuration settings for the new data source.
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11.To verify that the DSN is created, check the name of the Created DSN
in the user data source list box of the ODBC Data Source Administrator
dialog box and click Ok. The following figure shows the ODBC Data
Source Administrator dialog box.
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Displaying the webtrust Data Source created.
The Data Source is then used in the Login Process, to access specific tables
in the database.
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36
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4.6 Recovery & Security
The usability test verifies the user-friendly nature of the system. This relates
to normal operating and error-handling procedures.
Proper documentation is must for mainframe of any software. Apart from In-
line documentation while coding. Help coding, help files corresponding to
each program were prepared so as to tackle the person-dependency of the
existing system.
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CHAPTER 5
This section discuses the result of the work done in this project And also
mentions the future scope for improvement.
5.1 Conclusion
The “Banking Online System is a big and ambitious project. I am thankful for
being provided this great opportunity to work on it. As already mentioned,
this project has gone through extensive research work. On the basis of the
research work, we have successfully designed and implemented banking
online System. This system is based upon 2-tier client server architecture.
The tools used for development were as follows.
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5.3 Annexure A Sample forms
Home Page
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Customer Information
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Viewing Signature form
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Viewing Sign-In Page
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Welcome Login Account Page
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Account Details
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BioData
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Statement of Account
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Deposit Views
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Withdrawal Views
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Fund Transfer Views
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PROGRAM LISTING
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// createAccount.jsp
<%
try
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int byteread = fis.read(bytearray,0,avail);
catch(IOException ioe)
out.println(ioe.toString());
%>
<HTML><HEAD><TITLE>Signature Form</TITLE>
<STYLE>.ms-contemp-main {
.ms-contemp-tl {
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BORDER-RIGHT: white 2.25pt solid; BORDER-TOP: white 2.25pt solid;
FONT-WEIGHT: bold; COLOR: black; BORDER-LEFT-STYLE: none; BORDER-
BOTTOM-STYLE: none
.ms-contemp-left {
</STYLE>
<BODY>
<DIV id=layer1
<DIV id=layer2
<DIV id=layer3
<DIV id=layer4
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style="Z-INDEX: 2; LEFT: 34px; WIDTH: 475px; POSITION: absolute; TOP: 2px;
HEIGHT: 64px">
<DIV id=layer5
<DIV id=layer6
border=0></DIV> </DIV>
<DIV id=layer7
<DIV id=layer8
<DIV id=layer12
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<TBODY>
<TR>
</TR>
<TR>
</td</TR>
<TR>
</TR>
<TR>
<TR>
<TD class=ms-contemp-
left> </TD></TR></TBODY></TABLE></DIV>
<DIV id=layer13
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<TABLE class=ms-contemp-main height=143 width="98%"
bgColor=#ddeaff border=0><!-- fpstyle: 34,011111100 -->
<TBODY>
<TR>
<td background="images/image002.jpg"><b>
</TR>
<TR>
<TR>
</TR>
<TR>
</td></TR>
<TR>
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</td>
</TR></TBODY></TABLE></DIV>
<P> </P></DIV>
<DIV id=layer9
<TBODY>
<TR>
<TD>
SERIKI</FONT></P></TD></TR></TBODY></TABLE></DIV>
<DIV id=layer10
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<!--webbot bot="SaveResults" U-File="C:\Documents and
Settings\Seyi Lucas\My Documents\My Web Sites\_private\form_results.csv"
S-Format="TEXT/CSV" S-Label-Fields="TRUE" -->
<tr>
<td valign="top">
Signature form</font></b></p>
<tr>
<td width="177">
<p align="center"><font
face="Tahoma" size="2">Fix
passport Here</font></td>
<td> </td>
</tr>
<tr>
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<tr>
<td width="113">
<p align="left">
<font face="Tahoma"
size="2"> User id:</font></td>
<td>
<input type="text"
readonly="true" name="txtUserId" value="<%=userid%>"
size="26"></font></td>
</tr>
<tr>
<td width="113">
<font face="Tahoma"
size="2" color="#004E9B"> </font></td>
<td>
<font face="Tahoma"
size="2" color="#004E9B">
</tr>
<tr>
<td width="113">
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<font face="Tahoma"
size="2"> Password:</font></td>
<td>
<input
type="password" name="txtPass" size="26"></font></td>
</tr>
<tr>
<td width="113">
<font face="Tahoma"
size="2">Confirm Password:</font></td>
<td>
<input
type="password" name="txtCPass" size="26"></font></td>
</tr>
</table>
<p><b><font face="Tahoma"
size="2" color="#004E9B">NOTE:
</font></b><font face="Tahoma"
size="2">Don't forget
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will be sent to your
inbox. You will
</tr>
<tr>
<td width="177"
height="39"> </td>
<td height="39">
<p align="center">
Finish</button>
Cancel</button></td>
</tr>
</table>
</td>
</tr>
</table>
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</form></td>
</DIV>
<P> </P></DIV>
<P> </P></DIV>
<P align=center> </P></DIV>
</BODY></HTML>
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REFERENCES
2. www.google.com
3. www.wilkipedia.com
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http://globaltechforum.eiu.com/index.asp?layout=rich_story&doc_id=9
616&title=Overview+of+ecommerce+
in+Pakistan&categoryid=30&channelid=4, Accessed 18/06/07
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