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.