Project Report On

INTERNET BANKING SYSTEM

By Divyansh Gupta (08216401510)

Guided by

Dr. Udayan Ghose Associate Professor,USICT, New Delhi

University School of Information Technology Guru Gobind Singh Indraprastha University Sector 16C, Dwarka, New Delhi 110078, India

CERTIFICATE

This is to certify that the dissertation/project report (IT-457) entitled INTERNET BANKING SYSTEM done by Divyansh Gupta (Enrollment No. 08216401510) is an authentic work carried out by him at University School of Information and Communication Technology under my guidance. The matter embodied in this project work has not been submitted earlier to the best of my knowledge and belief.

(Signature of the Mentor) DATE: Dr. Udayan Ghose Associate Professor, USICT

ACKNOWLEDGEMENT

A research work owes its success from commencement to completion, to the people in love with researchers at various stages. We, in this page, express our gratitude to them who helped us in various stage of this study. We would like to express our sincere gratitude to Dr. Udayan Ghose(Associate Professor, USICT, GGSIPU) for the immense help provided in the completion of the project.

Without his help and guidance it would have been very difficult to develop this project.

Nitin Vohra (04416401510/IT/10) Divyansh Gupta (08216401510/IT/10)

INDEX
1. PREFACE ................................................................................................................... 2. ABSTRACT ................................................................................................................ 3. INTERNET-BANKING IN DEVELOPING COUNTRIES ..................................................... 4. DEFINING E-BANKING / ONLINE BANKING ................................................................ 5. ONLINE BANKING HOW IS IT DIFFERENT? .............................................................. 5.1 WHY USE ONLINE BANKING? .................................................................... 5.2 FEATURES OF ONLINE BANKING ................................................................ 6. SCOPE OF THE STUDY ............................................................................................... 6.1 METHODOLOGY........................................................................................ 7. INTRODUCTION AND OBJECTIVES .............................................................................. 8. USE CASE DIAGRAM ................................................................................................. 9. LIMITATIONS OF THE INTERNET BANKING SYSTEM ................................................... 10. REQUIREMENTS ANALYSIS DOCUMENT 10.1 FUNCTIONAL REQUIREMENTS ........................................................................... 10.2 NON-FUNCTIONAL REQUIREMENTS .................................................................. 11. SCREENSHOTS .......................................................................................................... 12. UML DIAGRAMS ....................................................................................................... 13. CONCLUSION ............................................................................................................

PREFACE
With the rapid globalization of the Indian economy, enterprises are facing with ever changing competitive environment. Enterprises are adopting strategies aimed at developing competitive advantage based on enhanced customer value in terms of product differentiation, quality, speed, service and costs. In the post liberalization era, with the deregulation of Indian economy, the financial service sector witnessing a complete metamorphosis and technology is playing a very significant role in this record. Over the last decade India has been one of the fastest adopters of information technology, particularly because of its capability to provide software solution to organizations around the world. This capability has provided a tremendous impetuous to the domestic banking industry in India to deploy the latest in technology, particularly in the Internet banking and e-commerce arenas. Banks are growing in size by mergers and acquisitions, which have been driven by communication and technology. Technology is playing a major role in increasing the efficiency, courtesy and speed of customer service. It is said to be the age of Ebanking. An Online Banking user is expected to perform at least one of the following transactions online: 1. Checking account balance

2. Transaction

3. Paying bills

4. Transferring funds between accounts

From a banks perspective, using the Internet is more efficient than using other distribution mediums because banks are looking for an increased customer base. Using multiple distribution channels increases effective market coverage by enabling different products to be targeted at different demographic segments. Also Banks cannot risk losing customers to competitors within the aggressive competition in the banking industry around the world. Moreover Internet delivery offers customized service to suit the needs and the likes of each user. Mass customization happens effectively through Online Banking. It reduces cost and replaces time spent on routine errands with spending time on business errands. Online Banking means less staff members, smaller infrastructure demands, compared with other banking channels. From the customers perspective, Online Banking provides a convenient and effective way to manage finances that is easily accessible 24 hours a day, seven days a week. In addition information is up to date. Nevertheless Online Banking has disadvantages for banks like how to work the technology, set-up cost, legal issues, and lack of personal contact with customers. And for customers there are security and privacy issues.

ABSTRACT

The adoption of Electronic Banking by commercial enterprise has been in existence since the mid 90s, much greater in number due to lower operating costs associated with it. Electronic banking has been in the form of automatic teller machines and telephone transactions. Internet banking system services can include: Open an account, Balance enquiry, Request for Cheque book, Beneficiary payments (EFT), Viewing monthly. More recently, it has been transformed by the Internet, a new delivery channel for banking services that benefits both customers and banks. Furthermore, customers application for electronic banking facilities is expanding as the cost savings on transactions over the Internet are significant.

INTERNET-BANKING IN DEVELOPING COUNTRIES

Just like Internet infrastructure,Internet -Banking in developing countries is at early stages; however there are some exceptions where countries like: Brazil has 75% of enterprises, excluding micro-enterprises using the Internet for banking in 2005. Morocco (34.9%). (United Nations Conference on Trade and Development, 2006), There is an increasing growth of online banking, indicating a promising future for online banking in these countries. 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. 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 epayment is the acceptable means of settling transactions. In Nigeria, the modernization of the payment process started with the introduction of the MICR. This 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. 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 todays hypercompetitive global world.

DEFINING E-BANKING / ONLINE BANKING

In the 21st century there will be a lot of banking, but there will be no banks. Says Bill Gates. 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 banks 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 customers accounts. Using these methods, banking transactions can be actioned 24 hours a day. Online banking allows the person, for instance, to view recent transactions, print out statements and transfer funds between accounts and make payments. 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 internet banking will also continue to use some of the elements of more traditional methods of banking, such as a cheque book.

ONLINE BANKING HOW IS IT DIFFERENT?

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!

WHY USE ONLINE BANKING?

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.

FEATURES OF ONLINE BANKING

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. A particularly popular aspect of online banking services is the ability to make bill payments electronically. With a minimum degree of set-up, customers can enter the amounts of their paper bills (or opt to receive electronic bills) and process all their payments at one time, from one screen

SCOPE OF THE STUDY

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.

METHODOLOGY
This project employs the object oriented approach of software engineering using appropriate (UML TOOLS) an object oriented approach. Some of the steps to be taken are: Feasibility study understanding and identifying of existing system and associated study. Analysis proper analysis and suggested solution to tackle such problems will be considered. Design designing the new system will be achieved through an object oriented software tools (UML). Coding this is implemented as a 3tier architecture model using java language. The 3 layers of the application are as follows. 1, Java server pages / html pages front end 2, Java server pages / servlets middle end 3, MySQL as the back-end

INTRODUCTION & OBJECTIVES

The main objective of the proposed solution is to be automated the various functions and activities of the bank through Internet. The solution will facilitate to the bank employees and the account holders with the different modules. This solution is very much necessary for the private sector banks and the corporate sector. The banking industry will take a new shape and explore like never before. Using the solution the bankers and account holders can generate various kinds of reports.

Searching Capabilities:
For the account holders convenience and on hand information, this solution provides certain searching and checking features for his account. The account holder can any time and any number of time can log on and search for various details as the accounts balance, details of transactions, interest amounts, debits / credits, etc. The account holder will have his unique id and password for logging on to the accounts information.

User friendly:
The solution provides very simple and modified features, which are very easy to view and operate various features. The said project is designed and organized in very simplified manner to suit the current requirements of the account holders of various models such as Saving Bank Account, Current Account and Recurring Deposit Account.

Transaction Management:
The transaction made through either net or manually in bank need to have a consistency with respect to the account details and other related information like transaction details across various databases.

Value Added Service

The solution provides good number of value added services in comparison to the normal banking services. Account holder can view his accounts and give the instructions of making payment to various government organizations for various services. An account holder can issue the instructions to transfer certain amount to any particular account number of the same / different bank. Individual can log on to the site and open new bank account in his name online by following the simplified registration form instructions

Security
The Net Banking system deals with a lot of proprietary information for its users, which are confidential. It is therefore imperative to provide a means though which information can be kept confidential. This is also ensures that the data that is put into the system maintains its integrity because malicious or unauthorized individual will not have access to alter them. The security is at two different levels, one at account holder and other at administrative level at the banks office.

USE CASE DIAGRAM

LIMITATIONS OF THE INTERNET BANKING SYSTEM

Problems of security: Various sites are not properly locked at to ensure whether the customers money is safe in cyber world or not. Wrong assumption: Many people are afraid using Internet Banking because of the assumption that it is more expensive than the traditional method of dealing with bank transactions. They still prefer going to bank to perform transactions. Lack of awareness: Another great hindrance is lack of awareness because effective and wide media efforts in publishing Internet Banking need to be emphasized

REQUIREMENTS ANALYSIS DOCUMENT

Functional Requirements
Customer can request details of the last n number of transactions he has performed on any account. Customer can make a funds transfer to another account in the same bank. Customer can request for cheque book Customer can view his monthly statement. She/he can also take print out of the same. Customer can make EFTs to accounts at their and other banks. The system is providing balance enquiry facility.

Non-functional Requirements
Those requirements which are not the functionalities of a system but are the characteristics of a system are called the non-functionalities. Secure access of confidential data. SSL can be used. 24X7 availability Better component design to get better performance at peak time Flexible service based architecture will be highly desirable for future extensions.

SCREENSHOTS

UML DIAGRAMS

Fig. Create new Account (Sequence Diagram)

.

Fig. Login Process (Sequence Diagram)

Fig.

Login Process (Activity Diagram)

Fig. Withdrawal of Money (Activity Diagram)

CONCLUSION
The Internet Banking System was successfully designed and is tested for accuracy and quality. During this project we have accomplished all the objectives and this project meets the needs of the organization. The developed will be used in searching, retrieving and generating information for the concerned requests.

GOALS
Reduced entry work. Easy retrieval of information Reduced errors due to human intervention User friendly screens to enter the data Portable and flexible for further enhancement Web enabled. Fast finding of information requested