DESIGN AND IMPLEMENTATION OF AN AUTOMATED BANKING MODEL SYSTEM
All commercial application developed (irrespective of the programming
environment used) are to business models. Applications help to
computerize business models. It is the computerization process that
empowers a business model to capture, validate, store and manipulate
business data at the highest speed possible. A microfinance Banking
business model has business processes that manipulate data associated
with savings accounts, current account, deposits and withdrawals for
each type of account, fixed deposits, and loans and so on. There
business processes are in some way associated with money transaction
since money is the core product of this business model. The project
which looks into the development of Banking Model was deigned to process
the customer registration, generate new account number give report in a
faster and more efficient way with the use of computer. VB 6.0 was used
to develop and implement the system.
TABLE OF CONTENT
1.1 Statement of the problem
1.2 Research Hypothesis
1.3 The aim and objective of the study
1.4 Scope of the study
1.5 Limitation of the study
1.6 The significance of the study
1.7 Definition of terms
2.0 Literature Review
2.1 Bank definition and features
2.2 Characteristics of
2.3 The invention of banking and coinage
2.4 Historical development of computer technology in banking industry
2.5 Introduction of banking model system
2.6 The effect of banking model
2.7 Comparative analysis
2.7.1 Analysis of existing system operation
2.7.2 Important and limitation of existing system
2.8 Government legislation concerning the system
3.0 System analysis
3.1 Analysis of existing system
3.1.1 Saving account
3.1.2 Current account
3.1.3 Fixed deposit account
3.1.4 Withdrawal operation
3 .1.5 Balance enquire
3.1.6 Lending operation
3.2 The computerize system
4.0 System design, implementation, documentation and evaluation
4.1 Menu specification
4.2 File design
4.3 System implementation
4.6 Program testing
Banking in Nigeria is said to have a long history since Nigeria
become independent in 1960. According to history in 1872, the Africa
Banking Co-operative Stated her operation in Lagos, Nigeria. The
Operation of cooperation was transferred to the Bank of British of West
However, as the populations of Nigeria citizens begin to increase the
Banking System begin to encounter some predicaments due to the manual
mode of banking operation. The document in technology made it possible
for banks to overboard the problem of manual processing poor decision
making and the problem of inter connection within the banking sector
which welcomes a full automated processing system such as networking
system for banking transaction, information technology, which enhanced
the decision-making process and alternative delivery channels. Which
includes Mobile Banking Online Banking, PC Banking and the use of ATM
(Automated Teller Machine)?
In recent years, significant technology advances have been made in
the field banking, both in Nigeria and in International level. The
penetration of such technology in business has been limited especially
in countries where the majority of their business re small or medium.
The effort to adopt E-banking or E-Business technology and solution has
targeted the end consumer (Business – To consumer)
BTC, and more
rarely takes into account real (Application-To-Application) ATA, a field
that is bound to make an impact in speed, security and accuracy of
business transaction and will ultimately boost the adoption of E-Banking
Despite the rising pace at which information technology is being
deployed, the majority of several millions of daily transaction among
the above entities are skill carried out in the traditional manners i.e.
the manual made the sending the various transaction documents through
mail or fax, manually inserting data in enterprise resource planning
(ERP) or customer relationship management (CRM) application or at best,
manually filling on-line web pages offered by bank or Government
Agencies based on the above inadequacy and on the absence of
Approaches at the same level, most of the companies (Banks) a waste
significant effort and resources while not entrusting the internet and
current bank-to-bank (BTB) or bank-to-customer (BTC) application for
It took the entire industry several years of developments to achieve
reliable, secure, convenient and efficient BTC transaction through the
web. Business application inter-connection is a far more difficult task,
how different proprietary internal system for accounting, order
processing, and supply-chain management be modified to exchange data
through the web reliably securely and in a standardized open way, so
that a custom solution for each business relationships is not required.
- STATEMENT OF THE PROBLEM
Through the banking sector is one of the most profitable sector of
economy high performance could be measured in terms of their returns, an
obligation to the society. The decline in performance of the Nigeria
Banking system is due to the array of problem in their day-to-day
transaction which is not reliable; secure efficient and relationship
between their customers. It is not giving their customer the right
treatment that they need.
The magnitude of this problem, brings about a research project among
to develop a standardized way of doing transaction safe it an
efficiently between business entities. And also interconnect them with
Government information system.
- RESEARCH HYPOTHESIS
In order to test the system spastically however it is formulated in
testable form with operation. Definition of the banking model
relationship as a statistical tool for research work i.e. Hypothesis Hi.
The null and the alternative hypothesis are either true or false
which allow us to consider just two actions and the outcome for each
hypothesis depending on whether it is true or false. The hypothesis
carried out shows that keeping on-line customers is worth the effort,
because keeping on-line customers increase banks profitability. They are
often assumed to be more profitable than off-line customers, because
they are better educated and earn higher incomes, still a study
controlling for this self-selection bias shows that the internet
channels alone increase a customer’s profitability to the bank by
Ho means there is no significant profitability effort for the on-line customers or end users.
Hi means there is significant profitability for the on-line customers or end users.
- THE AIM AND OBJECTIVE OF THE STUDY
The aim and objective of these research project is to develop and
pilot deployment of the necessary methodologies, technology
infrastructures, business and set up that will allow the average Nigeria
to carry out a significant portion of its business transaction (Banking
and Transaction) over the internet through the interconnection of
enterprise resources planning (ERP) applications between enterprises,
banking institution and the public sector.
Most especially, the general aims and objective are:
- To design and develop an easy, adaptable and financially
alternative solution for the average Nigerian small or medium
enterprises and the public by hiding the complexity of the E-Banking
system from the regular user and developing a low cost product.
study and emphasis on the particular important issues of data and
transactions security as well as the protection of interchanging parties
through modern security infrastructures.
continues-dissemination of the methodologies and the technical know how
that is developed through the project towards both the academic and
industrial worlds, in the form of scientific paper publications,
international conference presentations and workshop bringing together
1.3 THE SCOPE OF THE STUDY
The scope of the study is to cover some of the loop holes that can be
seen in the Banking model for the past years which their customers has
been finding it difficult to use in a correct manner, security and
ease-of- use may be odds, for example, strong passwords provide security
but are difficult to remember by the users.
The study also covered and lay emphasis on the causes of banking model which are:
1. HCI Design: Design and implement for user
interface for banking model client, such as bundling of a set of
payment, one-time task, such as installation of a digital signature base
2. Account number validation: The system should be able to validate the number typed by the users.
3. Reduce the number of repetitive tasks, the number of codes, passwords that the users required to remember.
4. To provide god explanation of signature file.
5. Design conventional banking model client that is a client they
runs in a PC browser and uses a signature file for user authentication.
6.Stimulate a password generator such as active card.
1.5 THE SIGNIFICANCE OF THE STUDY
The significance of this study is to satisfy customer which serve
as pre-requisite for customer retention, moreover the reason is that
cost of acquiring new customers is high but the profitability that they
stay is quit low, which may lead to switch from their banks to another
when the website or the application does not meet the customer need.
However, the study is to make sure that the e-banking users are less
likely to leave their bank. The system appears to be the retail channel.
I.e. especially prominent in cultivating customer loyalty. And the
household users are better informed and more actively involved in
financial affairs than on-line users that do not use their bank website.
Therefore, they should be able to convince more of their customers to
go on-line than affairs by guarantees of crucial security and
relatively cheapest fees for E-banking system.
- DEFINITIONS OF TERMS
- E-BANKING:- the remote delivery of new and traditional banking products and services through electric delivery channel.
- E-MAIL SERVER:- A computer that message e-mail traffic
- ENCRYPTION:- A data security techniques used to protect information from unauthorized inspection or alteration.
- FIREWALL:- A hardware or software link in a network that relays only data packets clearly intended and authorized to reach the other side.
- CHECK DIGITS: - A
digit in an accounts number that is calculated from the other digit in
the account number and is used to check the account number correctness
- BIOMETRICS:- the method of verifying a
person’s identify by analyzing a unique physical attribute of the
individual e.g. fingerprint, retinal, scanning.
- BANKING MODEL: - it has business that manipulates data associated with savings accounts, currents account, fixed deposits, loan and so on.
DNS server (Domain name service server):- A computer that determines
internet protocol (IP) numeric address from domain names presented in a
- ACCOUNT AGGREGATION: - A server that gathers
information from many website, present that information to the customers
in a consolidated format and in some cases may allow customer to invite
activity on the aggregate account.
- ACCOUNT MANAGEMENT:- Activities
such as balance inquire statement balancing transfers between the
customer’s account at the financial institution maintenance of personal
- BILL PAYMENT:- An E-banking
application where by customer’s directs the financial institution to
transfer funds to the account of another person or business. Payment is
carried out by ACH credit or by the institution (or bill payment
service) by sending a paper cheque on behalf of the customer.
- DIGITAL CERTIFICATION: the electronic equivalent ID cards that authenticates the originator of a digital signature.
Hypertext mark-up language a set of codes that can be inserted into a
format require for used by another system or application.
An item on a webpage, that when selected transfer the user directly to
another location, a hypertext document or to another webpage, perhaps on
a different machine.
- INTERNET SERVICE PROVIDER (ISP):- A company that provides it customer’s with access to the internet.
- INTERFACE:- Computer
programme that translate information from a system to another or
application into a format required for use by another system or
- KIOSK: - A publicly accessible
computer terminal that permits customers to directly communicate with
the financial institution via a network.
- PASSWORD: - A secret sequence of characters that is used as a means of authentification.
- PATCHING: - Software
code that replace or updates other code. Frequently patches are used to
correct security flaws. Suspicious activity report (SAR). Reports
required to be filled by the bank secretary. When a financial
institution identifies or suspects fraudulent act.
- SERVER: A computer or other device that manages a network to server.
- ROUTER: - A hardware device that connects two or more network and routes incoming data packets in the appropriate network.
- URL (UNIFORM OR UNIVERSAL RESOURCES LOCATION: - A way of specifying the location publicly information is available.
- Virus: - Malicious code that replicates itself within a computer.