CHAPTER ONE

1.1 INTRODUCTION

Design and implementation of online banking system, a case study of May

fresh savings and Loans Bank Caritas University Branch.

The greatest innovation that has taken place in the twentieth century is in the

realm of information Technology. This is currently made possible by the

introduction of the digital computers which has been observed in the field of

communication to be increasingly inseparable from communications. These

linkages often referred to as convergence is driven by technology and amplified

by business trends. Faster growth in network systems that use communication

links to connect subsidiary system (nodes) which may send and receives, direct

and redirect information.

Talking of the internet a couple of years ago would have sound like a

fairytale but today the internet is pervasive in almost every field of human

Endeavour changing the fundamentals of how we conduct national as well as

international businesses. Few years of its existence, the internet has shown that

it can deliver the long sought after goal of electronic commerce.

It is worth that companies in the developed countries world-wide have

recognized the business potential of the internet and are getting connected to the

network of networks in their millions.

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 The financial institution (Bank) is one of such organizations. Banking

constitutes one of the most prominent life wire for Socio-Economic grow and

development in any given nation, it supports and assists in the supply of long

and short term loan, accepts both current sowing and fixed deposits, both

foreign transactions, advice and facilitates transactions between client, workers,

agents, firm, buyers and seller by providing payment services, not excluding the

issue of undertaking risk on behalf of their clients, only to mention but a few.

The internet having found its application and acceptance in the banking

procession has particularly put the banking industry on an accelerating pace of

development. The technological highway (the internet) has become an enabler

for Banks in achieving high level productivity and in handling volumes of

transaction which would have been impossible without the use of on-line

banking (E-commerce).

The technology facilitates linkages with clients both through the

provision of information and quality service delivery, as well as in reducing

barriers to entry into payment systems retail banking. Internet banking allows

clients to engage in informal transaction relationship which would have taken

long distance travels or movement of documents with the attendant risk of loss.

With the online banking (internet) you can at your convenience, at home and at

any time review account balances and transactions, transfer funds, receive and

pay bills, down-load transaction services and contact customer services just to

mention but a few.

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 An over view of the benefits and prospects of the on-line banking suggest

that for banks to be relevant to their customers in term of the services they

provide in the twenty-first century and in the future, must append this services

provided by E-commerce in the banking system in order to stay in competition.

Now the on-line banking is the one thing bank should get up and invest in

internet technology to reap bounteously the benefit accruing from internet

banking.

While Internet continues growing and gaining popularity among crowd,

mobility represents new challenges to web designers. Wireless access is a new

challenging mission in the current Internet era, with different demand for

information by using less efficient terminals and networks. What really

motivated our choice of topic was the fact that Information and Communication

Technology (ICT) is not yet fully applied in May fresh Bank and in our

economy as a whole. We felt that May fresh Bank Caritas University Branch

should also exploit the use and application of this wireless system in order to

enhance their operations effectively and efficiently.

1.2 STATEMENT OF PROBLEM

In banking industries today, queuing has become the order of the day,

customers‟ line up for hours waiting to withdraw or deposit money. This creates

a lot of problem to both customers as they waste their useful time in the banking

hall. The management also wastes their time as they run around to find solution

to those problems. Also it is observed that customers cannot withdraw money

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any time they want as banks has their working hours. This is a big problem as

needs can arise at any time and human beings will always like to have those

needs solved. Also money deposited into accounts at times takes some hours to

reflect in the persons account balance hence making banking operations slow

and unhealthy for business growth.

Information and Communication Technology is still underutilized in May

fresh Bank Caritas University Branch and in our society as a whole. May

fresh Bank Caritas University Branch lacks effective ICT capacity for

dynamic wireless operations. On analyzing the existing system of branch,

the following problems were identified:

a. May fresh Bank Caritas University Branch lacks the Information and

Communication Technology (ICT) capability to wirelessly operate and interact

with their database in order to:

l Verify whether an account is credited or debited, wirelessly using GSM

handset or internet.

l To verify the status of a Customer‟s transactions.

b. May fresh Bank, can verify the validity of their customers only through one

source in a whole Branch through on central database online.

c. Presently, customers cannot access their May fresh Bank account

Information online or with their GSM handsets, either to check or verify the

status of a transaction without much official steps.

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May fresh Bank cannot automatically contact their customer whose account

number has been credited or debited as a result of lack of automated system.

1.3 OBJECTIVES OF THE PROJECT

l To improve in the speed, effectiveness, efficiency and convenience in

business transaction.

l To design and implement a computer software to solve this problem and

rendering the services.

l To design a friendly web-site that graphically advertises goods and

services provided by the institute on web pages.

l To provide an On-line banking database for May fresh Bank using

MySQL database.

l To interface the client and server side in a cost effective and efficient

manner.

l To generally enhance the operational capacity of May fresh Bank via

ICT.

l To design an interface that could be used to input transactions details for

customer, and the bank staff information, able to store them in the database for

further use and investigations of any bank transactions.

1.4 SCOPE OF THE PROJECT

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 This project will provide an online banking database using MySQL database

for May fresh Bank that can be accessed wirelessly from any branch area at

any time. It features both GSM based wireless database access and Internet

based wireless access for WAP enabled cell phones. Other features include

ability to receive feedback wirelessly from any stakeholder and also the

ability to provide answers wirelessly to frequently asked questions and other

enquiries. It is hoped that its wireless database access feature would greatly

enhance the operational capacity of May fresh Bank in a cost effective

manner.

1.5 LIMITATION OF THE STUDY

Hard time is not a new phenomenon to an ordinary Nigerian but to the

student researcher, it is even worse. Time and finance posed a lot of constraints

to the work.

Consequently, difficulties were encountered during the collection of

primary data. Most of the administrators, system engineers and clerks visited

reluctantly refused interview for one reason or the other and being referred to,

the organization from one personnel to the other not excluding even security

men.

Books related to this topic are relatively scarce and could only be gotten from

the internet, which took a lot of time and money.

However, with persistence and perseverance reasonable facts were finally

obtained.

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 1.6 PROGRAMMING LANGUAGE USED

Programming language used are HTML, JAVA script, PHP. Software

includes Adobe Software used are Adobe Dreamweaver CS5, Adobe

Fireworks and wampServer .

1.7 ORGANIZATION OF PROJECT REPORT

This Project report is organized in five chapters. Chapter one is on the

Introduction, Chapter two is on Literature Review. Chapter three is on

Research Methodology and System Design, Chapter four Testing and

Implementation. Chapter Five is on recommendations and Conclusions.

1.8 DEFINITION OF TERMS

l Analysis: Breaking a problem into successively manageable parts for

individual study. Data flow: Movement of data in a system from a point of

origin to specific destination indicated by a line and arrow

l Design: Process of developing the technical and operational specification of

a candidate system for implements.

l Implementation: In system development-phase that focuses on user

training, site preparation and file conversion for installing a candidate system.

l Operation System: In database – machine based software that facilitates the

availability of information or reports through the DBMS.

l Password: Identity authenticators a key that allow access to a program

system a procedure.
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l System: A regular or orderly arrangements of components or parts in a

connected and interrelated series or whole a group of components necessary to

some operation.

l System Design: Detailed concentration on the technical and other

specification that will make the new system operational.

l System Testing: Testing the whole system by the user after major programs

and subsystem has been tested.

l Unit testing: Testing changes made in an existing or new programs.