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Banking Management System (SRS Report) Members: Team Guide

Preprint · November 2023

DOI: 10.13140/RG.2.2.11558.50245

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 Banking Management
System
(SRS Report)

Members:

Anway Ghosh (2105775)

Mayukh Patra (21051226)
Subhadip Sasmal (21052797)
Abhilash Bandyopadhyay (2105345)

Team Guide:
Dr. Hitesh Mahapatra

College Name: KIIT University Department:School of computer engineering

Table of Contents

1. Introduction
1.1 Purpose
1.2 Product Scope
1.3 Technologies to be used
1.4 Definition, Acronyms and Abbreviations

2. Overall Description
2.1 Product Perspective
2.2 User Classes and Characteristics
2.3 Operating Environment
2.4 Software Interfaces
2.5 Hardware Requirements
2.6 Functionalities
2.7 General Constraints

3. System Features
3.1 Functional Requirements
3.2 Technical Issues
3.3 Non-functional Requirements

4. Design
4.1 Decision tree
4.2 Use Case Diagrams
4.3 Class Diagram
4.4 State chart
4.5 DFD 0 and DFD 1

5. Database Design
5.1 E-R Diagram

6. Future Scope
7. Conclusion
8. References
 1) Introduction

1.1 Purpose:
The purpose of this document is to present a detailed description of the Online
Banking System.It will describe the system's functions, features, interfaces, what it
will accomplish, the limitations it must work under, and how it will respond to outside
stimuli. This document is meant for both system developers and stakeholders, and it
will be responsible for determining if the Bank community approves or disapproves of
the project.

1.2 Scope:
Imagine a world where you can access your bank account from anywhere, anytime,
without having to visit a physical branch. That’s what online banking offers! It’s a more
effective and straightforward method to manage your finances, with records that you can
access from any device, anywhere, anytime, according to your privileges. Online banking
is designed to make your life easier by providing convenient features and faster ways to
complete transactions. It’s no wonder that all banks are choosing online banking over
traditional banking. With online banking, you can bank on the go, and never miss a beat!

1.3 Technologies to be used:

Web Development: HTML, CSS, JavaScript, and web frameworks for the interface,
backed by server-side languages.

Database Management: Use databases like MySQL, PostgreSQL, or No SQL for data
storage.

Security: Implement encryption, multi-factor authentication, and security measures.

Payment Processing: Integrate with payment processors (e.g., Stripe, PayPal).

Mobile Banking: Develop mobile apps for iOS and Android.

Cloud Computing: Hosting on AWS, Azure, or GCP for scalability and high
availability.

API and Integration: Development of API to connect with third-party services.

Compliance: Adherence to financial regulations such as KYC and AML.

Backup and Recovery: Automated backup solutions for data integrity.

User Notifications: Email and SMS gateways for alerts.

Logging and Auditing: Record and audit user and system activities.

Compliance and Maintenance: Ensure compliance with financial regulations, regular

maintenance, and security updates.

1.4 Definition, Acronyms and Abbreviations:

SQL Server Structured query language intended for database use.utilized to

specify data storage and retrieval protocols.

User Authentication The process of verifying the identity of a user attempting to

access the system.

Encryption The process of converting data into a code to prevent

unauthorized access or data theft.

API (Application A set of rules and protocols for building and interacting with
Programming software applications.
Interface)

KYC (Know Your A process that financial institutions use to verify the identity
Customer) of their customers.

Compliance Adherence to legal and regulatory requirements and

standards.
Credit card In order to complete your purchases and payments, utilize
credit cards. Each of these cards is issued by various banks,
ensuring that the cardholder possesses an account and balance
within the respective bank.

SRS A document that completely describes all of the functions of a

proposed system and the constraints under which it must
operate. For example, this document.

Cloud Computing The delivery of computing services, including servers,

storage, and databases, over the internet.

Stake Holders Any individual who possesses an inclination towards the

project and does not engage in development work.

Scalability The ability of a system to handle increased loads and demand

by adding resources or expanding infrastructure.
 2) Overall Description

2.1 Product Perspective:

Imagine a modern banking institution that is optimized to provide you with the best
banking experience possible. The Banking Management System (BMS) is a sophisticated
software solution that makes this possible. It serves as the central hub for various banking
activities, making it easy for you to manage your finances. BMS is designed to replace or
integrate with existing legacy systems, offering a more efficient and user-friendly banking
experience while ensuring compliance with industry regulations. With BMS, you can be
sure that your banking needs are taken care of in the most efficient and effective way
possible.

2.2 User Classes and Characteristics :

BMS caters to a diverse range of users with varying roles and responsibilities,
including:
• Bank Staff: This class includes tellers, loan officers, customer service
representatives, branch managers, and executives. They need different levels of
system access to perform tasks related to customer accounts, transactions,
approvals, and auditing. Each staff member has specific roles within the system,
such as account creation, transaction processing, loan origination, and account
management.
• Customers: The bank's clients represent a vital user class. They require access to
their accounts, transaction history, and the ability to make transactions online, such
as deposits, withdrawals, transfers, and bill payments. Customers must have secure
and easy-to-use interfaces for their banking needs.
• Administrators: Administrators oversee the system's configuration and
maintenance. They manage user access levels, security protocols, system updates,
and ensure overall system health. Their responsibilities include system setup,
troubleshooting, and managing software updates.
• Auditors: Auditors represent another crucial user class. They review and monitor
financial transactions for compliance and security, ensuring that the bank operates
within legal and regulatory frameworks. Auditors have access to advanced
auditing tools and reports.

2.3 Operating Environment:

The Banking Management System (BMS) is a sophisticated software solution that is

compatible with a wide range of Windows operating systems, including Windows 7 and
subsequent versions. It can be run on standard desktop computers or servers, depending on
the bank’s requirements.
BMS is designed to be hosted on a dedicated server within the bank’s premises and
accessed through a secure network to maintain the highest level of data security. This
ensures that your sensitive financial information is always protected from unauthorized
access.
With BMS, you can manage your finances with ease, knowing that your data is always
secure and accessible from any device, anywhere, anytime, according to your privileges.

2.4 Software Interface:

The BMS interfaces with several key software components to deliver its functionality,
including:
• Database Management System: BMS connects to a robust and secure database
management system, such as Oracle, MySQL, or SQL Server, to store and retrieve
customer data, transaction records, and system logs. This integration ensures data
integrity, reliability, and accessibility.
• Web Services: To facilitate online banking, BMS interfaces with web services for
customer account access and transaction processing. This includes features like
online account management, fund transfers, and account statements. Web services
allow customers to interact with the bank 24/7 from various devices, including
web browsers and mobile applications.
• Payment Gateways: The system integrates with payment gateways to enable
electronic fund transfers, online payment processing, and integration with external
financial networks like SWIFT and ACH.
• Third-Party APIs: BMS can incorporate third-party APIs for services such as
credit scoring, identity verification, and payment processing, enhancing its
capabilities and extending the range of services provided to customers.

2.5 Hardware Requirements:

The Banking Management System requires specific hardware resources to operate
effectively. The following hardware requirements should be met for optimal system
performance:
• CPU: An Intel Core i5 or equivalent processor is recommended to handle the
system's computational demands efficiently.
• RAM: A minimum of 8 GB of RAM is necessary to ensure smooth operation
when handling multiple users and large datasets.
• Storage: The system should be equipped with a minimum of 500 GB of SSD
storage, ensuring fast data retrieval and ample space for logs and backups.
• Network: A high-speed and stable internet connection is essential for seamless
access to web-based components, secure data transfers, and communication with
external financial networks.
• Security: Robust security measures, including firewall protection and antivirus
software, should be in place to safeguard the system from potential threats,
ensuring data integrity and privacy.
2.6 Functionalities:
The Banking Management System provides a wide array of functionalities to meet the
dynamic needs of the banking industry. Key functionalities include:
• Customer Account Management: BMS enables bank staff to create, modify, and
close customer accounts with comprehensive customer profiles that include
personal information, identification documents, and account preferences.
• Transaction Processing: The system supports various types of transactions,
including deposits, withdrawals, transfers, bill payments, and check clearances.
Real-time transaction tracking and confirmation features enhance customer and
staff experience.
• Loan Management: BMS facilitates the origination, approval, and tracking of
loans. This includes comprehensive loan application processing, risk assessment,
and loan documentation.
• Online Banking: The system provides customers with 24/7 access to their
accounts through secure online banking interfaces. This includes account balances,
transaction history, electronic fund transfers, and bill payments. Customers can
also apply for loans and set up automated transfers.
• Reporting and Auditing: BMS generates a wide variety of reports for bank staff
and auditors, offering insights into customer account activities, financial
transactions, and system performance. It also supports auditing and compliance
reporting to meet regulatory requirements.
• Security: The system implements robust security measures, including user
authentication, encryption of sensitive data, and access control to safeguard
customer information and financial data.
• Notifications: BMS sends notifications to customers for transaction alerts, account
updates, and promotional messages through various communication channels,
including email and SMS.
• Customer Support: The system integrates a customer support portal, allowing
customers to submit inquiries, raise issues, and track their resolution status. Bank
staff can access customer support tickets and prioritize service requests.

2.7 General Constraints:

Several general constraints should be considered during the development and
operation of the Banking Management System:
• Data Privacy Regulations: BMS must comply with data privacy laws and
regulations, such as GDPR, HIPAA, and local banking regulations. It should
include features for data encryption, consent management, and secure data storage.
• Legacy System Integration: The migration from existing legacy systems to the
BMS may pose challenges. Careful data transfer, staff training, and comprehensive
 testing are essential to ensure a smooth transition without disrupting banking
operations.
• Security Concerns: The system must be designed with robust security
mechanisms to protect against data breaches and cyberattacks. Continuous
monitoring and updating of security measures are crucial, given the sensitive
nature of customer information and financial data.
• Scalability: BMS should be designed to accommodate future growth in terms of
customers and transactions. The system's architecture and infrastructure should be
scalable, allowing for easy expansion and system enhancements.
• User Training: Adequate training must be provided to bank staff and customers to
ensure the effective use of the system. A well-structured training program should
be in place to familiarize users with the software's features and functionalities.
3) System features

3.1 Functional Requirements

A. User Authentication and Authorization :

• The BMS allows new users to register and create accounts.

• Login: Users should be able to login using username and password.
• Roles: Different user roles should have different levels of access and privileges.

B. Account Management :

• The BMS allows customers to open all types of accounts like savings, fixed
deposit, etc.
• Account holders will be able to view their transaction history and their available
balance.
• They will be able to transfer funds between their own accounts or to others
accounts.

C. Loan Management :

• Customers should be able to apply for loans and view their loan status.
• The system should calculate loan interest rates and provide repayment schedules.
• Loan officers should be able to review and approve loan applications.

D. Customer Support :

• Users should be able to contact customer support through the system, including
email or chat.
• Customer support agents should have access to customer data to provide assistance.

E. Account Statements and Reports :

• Account holders should be able to generate and download account statements.

• Managers should have access to various reports, such as daily transaction
summaries, account balances, and audit logs.
F. Online Bill Payment :

• Customers should be able to pay bills online, such as utility bills, credit card bills,
and loan payments.
• The system should securely process these payments and provide payment
confirmation.

G. Online Banking for Mobile Devices :

• The system should be accessible via web browsers and mobile applications.
• It should provide a user-friendly interface for mobile users.

H. Automatic Alerts for Unusual Activities :

• The system should automatically detect and alert users to unusual or suspicious
account activities, such as large transactions from new locations.

3.2 Technical Issues

• Database: The Banking Management system will use the MySQL Database, which
is open source and free to use.
• Operating System: The Development environment can be Windows 10.
3.3 Non Functional Requirements

A. Security :

• The system should implement robust security measures to protect against

unauthorized access, data breaches, and fraud.
• It should use encryption for data transmission and storage.
• Access control should be granular, and data should be protected against SQL
injection and other common vulnerabilities.

B. Performance :

• The system should provide fast response times for common operations (e.g.,
account balance inquiries, funds transfers).
• It should be able to handle a high number of concurrent users and transactions
during peak times.
• Response times should remain within acceptable limits even during periods of
heavy usage.

C. Scalability :

• The system should be scalable to accommodate an increasing number of users,

accounts, and transactions.
• It should allow for the addition of new servers or resources as the system grows.

D. Reliability :

• The system should have a high level of availability, with minimal downtime for
maintenance or upgrades.
• It should have a mechanism to ensure uninterrupted service in case of hardware or
software failures.

E. Recovery and Backup :

• The system should have a robust data backup and recovery strategy to prevent data
loss in case of system failures.
• Regular backups should be performed and tested for reliability.
• A disaster recovery plan should be in place to restore service quickly in the event
of a catastrophic failure.

F. Compliance :

• The system should adhere to relevant banking and financial industry regulations,
including Know Your Customer (KYC) and Anti-Money Laundering (AML)
requirements.
• It should comply with data protection and privacy laws, such as GDPR or HIPAA,
as applicable.

G. Usability :

• The user interface should be intuitive and user-friendly, catering to users of

varying technical abilities.
• The system should be accessible to individuals with disabilities and comply with
accessibility standards (e.g., WCAG).

H. Load Testing and Performance Monitoring :

• The system should be subject to load testing to ensure it can handle expected
levels of usage.
• Continuous performance monitoring should be in place to detect and address
performance bottlenecks.
4) Design

4.1 Decision Tree

4.2 Use Case Diagrams
4.3 Class Diagrams
4.4 State Chart
4.5 DFD 0 AND DFD 1
5) DATABASE DESIGN
5.1 Entity-Relationship Diagram (ERD)
Entity-Relationship Diagram Overview:

The ERD illustrates the primary entities, attributes, and relationships in the Banking
Management System:

1. Entities:

a. Customer
- CustomerID (Primary Key)
- First Name
- Middle Name
- Last Name
- Date of Birth
- Gender
- Email
- Contact
- Permanent Account Number (PAN)
- Nationality
- Salary
- Gender
- Address

b. Account
- Account No (Primary Key)
- CustomerID (Foreign Key)
- Account Type (e.g., Savings, Checking)
- Balance
- Interest Rate
- Date Created
- Interest ID
- Interest Amount

c. Transaction
- TransactionID (Primary Key)
- Account No (Foreign Key)
- Transaction Type (e.g., Deposit, Withdrawal, Transfer)
- Amount
- Transaction Date and Time
- Total Balance
d. Deposit Account
- Deposit Account No (Primary Key)
- Account No
- Closure type
- Interest ID
- Initial Amount
- CustomerID
- Deposit Account Type
- Interested Amount
- Current Balance
- Duration
- Interest Rate
- Open Date
- Close Date
- Days

e. Officer
- EmployerID (Primary Key)
- Username
- Password
- Email
- Nationality
- Salary
- Address
- Gender
- Contact
- Date of Birth
- First Name
- Middle Name
- Last Name
f. Manager
- EmployerID (Primary Key)
- Username
- Password
- Email
- Nationality
- Salary
- Address
- Gender
- Contact
- Date of Birth
- First Name
- Middle Name
- Last Name

g. Interest
- InterestID (Primary Key)
- Savings Interest
- Loan Interest
- RD Interest
- FD Interest
- Current Interest

h. Loan Account
- Account No (Primary Key)
- Loan ID
- Loan Type
- Date of Loan
- Duration
- Total Amount
- Remaining Amount
- Status
- Description
- Interest
6) Future Scope :
The future scope of a Banking Management System includes:

1. Digital Transformation: Banks will continue to invest in digital technologies to

improve customer experiences, streamline operations, and enhance security.

2. Artificial Intelligence: AI will play a crucial role in customer service, fraud

detection, and data analysis for personalized financial solutions.

3. Blockchain: Blockchain technology can enhance security, transparency, and

efficiency in various banking processes, including cross-border payments and identity
verification.

4. Open Banking: Open banking regulations will promote collaboration between banks
and fintech companies, offering customers more choices and personalized financial
services.

5. Cybersecurity: With the increasing digitization of banking, cybersecurity will

remain a top priority to protect customer data and financial assets.

6. Mobile Banking: Mobile apps will continue to evolve, providing more features for
managing accounts, making transactions, and accessing financial advice.

7. Personal Finance Management: Banking systems may integrate advanced tools to

help customers manage their finances, make informed decisions, and save money.

8. Regulatory Compliance: Banks will need to adapt to evolving regulatory

requirements, such as data privacy and anti-money laundering regulations.

9. Sustainability and ESG: Banks will focus on environmental, social, and governance
(ESG) criteria in their operations and investment decisions.

10. Financial Inclusion: Banking systems will work towards greater financial inclusion,
extending services to underserved populations and remote areas.

11. Data Analytics: Advanced data analytics will enable banks to gain insights into
customer behavior and preferences, allowing for more targeted services.

These trends represent the evolving landscape of banking management systems, driven
by technological advancements, regulatory changes, and shifting customer demands.
7) Conclusion :
The System Requirements Specification (SRS) for a Banking Management System is a
critical document that outlines the functional and non-functional requirements of the
software system. This document serves as a foundation for the design, development,
and testing phases of the project, ensuring that the final system meets the needs and
expectations of both the bank and its customers. In this conclusion, we will highlight
the key takeaways and emphasize the importance of a well-defined SRS for such a
complex and sensitive domain. First and foremost, the SRS for a Banking
Management System has been designed with a strong emphasis on security and data
integrity. The confidentiality, availability, and integrity of customer data are of
paramount importance in the banking industry. This document provides a detailed
outline of the security measures, user access controls, and encryption standards that
will be implemented to safeguard sensitive information. By doing so, it ensures that
customer trust is maintained and regulatory compliance is upheld. Another crucial
aspect of the SRS is its comprehensive coverage of the system's functionality. It
defines the various features and modules that the Banking Management System will
offer, including customer account management, transaction processing, loan
management, reporting, and administrative tools. This level of detail enables
developers to understand the full scope of the project and minimizes
misunderstandings or misinterpretations during the development process.

In conclusion, the System Requirements Specification for a Banking Management

System is an indispensable document that lays the foundation for the successful
development and deployment of a sophisticated and secure banking software solution.
It encompasses the critical aspects of functionality, security, performance, and user
experience, all of which are essential in the banking industry. A well-defined SRS
reduces ambiguity, minimizes risks, and serves as a roadmap for developers and
stakeholders. By following the guidelines and requirements set forth in this document,
the bank can look forward to a robust, secure, and customer-centric Banking
Management System that will not only meet their immediate needs but also adapt to
future challenges and opportunities in the ever-evolving world of banking.
8) Testing and Validations:

Testing and validation are critical stages in the development of a Banking

Management System to ensure that the software meets the specified requirements and
standards. Here are some suggested testing and validation processes for this software
project:

Functional Testing: This involves testing each function of the banking software
against the functional requirements outlined in the SRS. It ensures that the system
performs as expected in terms of customer account management, transaction
processing, loan management, reporting, and administrative tools.

Security Testing: Given the emphasis on security in the SRS, comprehensive

security testing is essential. This includes vulnerability assessments, penetration
testing, and validation of encryption standards to ensure the confidentiality, integrity,
and availability of customer data.

User Acceptance Testing (UAT): UAT involves testing the software with actual
users to ensure that it meets their needs and is intuitive to use. This can involve bank
employees, administrators, and potentially some customers in a controlled
environment.

Performance Testing: Testing the system under load to ensure it performs optimally
under normal and peak usage conditions. This includes stress testing, load testing, and
scalability testing to determine the system's responsiveness and stability.

Compliance Testing: Validate that the software complies with banking regulations
and industry standards. This includes testing for adherence to data protection laws,
financial regulations, and security standards mandated by relevant authorities.

Integration Testing: Ensuring that the banking software integrates seamlessly with
existing systems, such as core banking systems, payment gateways, and third-party
services.

Usability Testing: Evaluate the user interface, user experience, and accessibility
features to ensure that the software is easy to navigate and use for both bank
employees and customers.

Regression Testing: Verify that new updates or fixes do not adversely affect existing
functionality by retesting previously completed test cases.

These testing and validation processes help ensure that the Banking Management
System meets the requirements outlined in the SRS and that it is secure, reliable, and
functional for both the bank and its customers.
9) References :
1. Mohapatra, H., & Rath, A. K. (2020). Fundamentals of software engineering:
designed to provide an insight into the software engineering concepts. BPB
Publications.

2. Books : Books on banking technology and management, particularly those written

by experts in the field. Some books which deserve special mention are :

A Philosophy of Software Design

Fundamental of Software Engineering
Software Engineering elements

3. Online Databases : Online databases like PubMed, Google Scholar, or databases

specific to the finance and technology sectors can be valuable resources for
academic papers and reports.

4. Websites :

Websites like
https://www.geeksforgeeks.org/
https://www.researchgate.net/
https://www.slideshare.net/
https://www.studocu.com/
https://en.wikipedia.org/wiki/Online_banking
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