System Design Of Internet Banking System

Abstract: In recent year, Internet banking system has become very popular among customers and business. Nowadays, Internet banking is provided by banks because of its advantages. Such as 24 hours services, fast, easy and secure access to customer through Internet. This report intends to offer the system architecture and system design for Internet banking system which is mainly focused.

Introduction

Internet has become the way for conducting increasing numbers of transactions between suppliers and large business because of the speed, flexibility and efficiency that it offers. In this way, new market has been opened to the world and diffusion of knowledge has been accelerated to the internet. Internet markets or online commercial business has been widely used. Since a special way to design the system should have been by the web-based system and implement it.

Nowadays, internet banking system widely used to increase demand of online banking transactions. Internet banking system is looking to provide the best quality with highly available, fast, secure and safe to use. System analysis is used to analyze and design any system. In this report, the framework of system analysis and design, system design and system architecture for internet banking system are discussed. In addition, about the system architecture is so important that it has become the foundation of the system analysis and design is also discussed.

A Framework of System Analysis and Design

Many organizations consider information systems in order to produce useful information by capturing and managing data to employees, customers, suppliers and partners. It is necessary for their ability to compute or gain competitive advantage. Information systems can be classified by the functions such as

Transaction processing systems

Management information systems

Decision support systems

Executive information systems

Expert systems

Communication and collaborative systems

Office automation systems.

Various perspectives can view in information systems such as the players, business drivers, technology drivers and process. From the point of view of system stakeholder, the system analysts bridge the communication gap that can develop between system owners and users and also between designers and builders. System owners are typically executive managers for large systems and may be supervisors for small systems. Unlike system owners, costs and benefits of the system tend to less concern by system users. There are two kinds of system users such as internal system users and external users.

For information systems, system designers are technology specialists such as Database administrators, Network architects, Web architects, Graphic artists, Security experts and Technology specialists. System users’ business requirements and constraints are translated by system designer into technical solution. System builder is to construct the system according to the system designer’s specifications. System designers and system builders are the same in small system but they are often different jobs in large system. Application programmers, system programmer, database programmer, network administrators and security administrators are technical specialties. System owners, users, designers, and builders often have different perspective for building and using on any systems.

What is System Design?

System design is the specification of a detailed computer-based solution. (Bentley, L, D., & Whitten, J, L (2008)) Also know as physical design.

There were many techniques or approaches that are concerning to the aspect of the system design and can be categorized as follow:

Model-Driven Approaches

Rapid Application Development (RAD)

Joint Application Development (JAD)

Model-Driven Approaches

One of the system design approaches is the Model-Driven Approaches. It emphasizes the drawing of pictorial system models to document the technical or implementation aspects of a new system. (Bentley, L, D., & Whitten, J, L (2008))

The examples of model-driven approaches are modern structured design, information engineering, and object-oriented design.

Modern structured design

Modern structured design is a system design approaches. These approaches assist to deal with the size and complexity of the programs for developers. It also a process-oriented approaches that breaking up from a large size of program into a hierarchy of modules, and that results are easy to implement and preserve.

Information engineering

Information engineering (IE) can be defined as the application of an interacting set of formal techniques of the planning, analysis, design a construction of information systems on a major sector of enterprise. The data model is the primary tool of IE.

IE facilitates the long-term evolution of systems and also identifies how computing can best aid the strategic goals of the enterprise. Moreover, IE creates a framework to develop the computerised enterprise.

Prototyping

A technique for quickly gathering specific information depends on the information requirements of the user.

Advantages of Prototyping

Change the system early in its development

Scrap undesirable systems

Design a system for users’ needs and expectations

Disadvantages of Prototyping

Manage the project

danger of overtaking other phases in SDLC

Adopt an incomplete system as complete

Documentation might be incomplete

Object-oriented design

Object-oriented design (OOD) techniques, is a design system using self-contained objects and object classes.

Some of characteristics on these techniques are as follow:

Objects are abstractions of real-world or system entities

Objects are independent and encapsulate state and representation information

In the terms of objectives services, the System functionality is explicit

Shared data areas are removed and each of the object are communicate by means of message passing

Objects may be distributed and execute in the form of sequentially or in parallel

Rapid Application Development

Rapid application development (RAD) is an approach to systems development that includes a method of development as well as software tools. It applies to structured, prototyping, and joint application development (JAD) techniques to rapidly develop the system. Nowadays these techniques used to become popular design techniques.

RAD is used when:

The developer team have programmers and analysts who are experienced with these technique

The project include a novel ecommerce application and needs to find quickly result

Users are sophisticated and highly engaged to the goals of the company

Joint Application Development

Joint Application Development, or JAD, is a process that is originally developed for designing a computer-based system. It brings together business area people (end users) and IT (Information Technology) professionals in a highly focused workshop. The purpose of using JAD is to define the project, design a solution, and monitor the project until it reaches completion.

The advantages of JAD include a dramatic shortening of the time it takes to complete a project. It also improves the quality of the final product by focusing on the up-front portion of the development lifecycle.

Internet Banking

Internet banking is the system that allows customers to access general financial information transactions through a secure bank-created website. Nowadays, all banks provide internet banking because of its advantages. Customer no need to give their precious time to go to bank and just click the mouse and then can access their own bank account so Internet banking become integral to the lives of busy people. They just need to have a computer or an intellectual device such as mobile device or PDA with an Internet connection and iB secure device which is offered by their own bank. Another good point of internet banking is that customers are allowed to bank with easy and paperless way at non-working hours and public holidays also.

4.1. Types of internet Banking

At present, these following three basic types are utilized in the marketplace.

1. Informational: This is the foundation level of internet banking and it can be offered by the bank or outsourced. There has an appropriate control to prevent unauthorized alterations to the bank’s server of Web site.

2. Communicative: This type allows some interaction with customer and the bank’s system. There has an appropriate control to prevent unauthorized attempt to access the bank’s internal network and computer systems so virus control plays vital role in this environment.

3. Transitional : This level allows customers to execute their transactions such as accessing accounts, paying bills, transferring funds etc.,

4.2. Pros and Cons of Internet Banking

The prominent point of Internet banking is that it is very convenient for customers rather than traditional banking system and can available 24/7 and time saving.

Customer can access their account anytime and anywhere no need to go the bank

Customer can also check their account information and make funds transfer to their payee

Customer can access too many services such as payment services, investment services and trading services

Customer can open their new account

Customer can access deposit account, remittance and apply Credit/Debit card

Customer can update their profile such as changing their address, their phone number and so on.

Although Internet banking has too many productive points and very popular in the recent years, there are few drawback that are worried by customers. Despite the Internet banking installed Internet security programs and latest anti-virus software, customers scared that privacy of their information and loss of user IDs and pin number also. By using Internet banking system, there are loss of communication with fellow and friends at physical branches of banks. Another problem which customer encounter occasional is, when the bank server is down, customer cannot access the Internet banking system.

4.3. System Design in Internet Banking

Steps of System design in Internet banking are as follow:

Firstly, the customer needs to request the URL.

Customer login the system, then the system checks User ID and Pin No.

After the system check User ID and Pin No. , then the system check that this customer is valid or not.

If it is valid, then that customer need to key in their OTP can access the system so the customer can see the Main Menu page of the Internet banking website.

Then the customer can choose from many menus such as viewing Account Information, Funds Transfer, Payment, Trading and Investment Services, Opening New Account, Remittance, and Update Customer Profile and so on.

For example, if the customer chooses the Funds transfer menu, then the customer need to select Funds Transfer type such as Funds Transfer to My own A/C, Funds Transfer to Other A/C and Funds Transfer to Other Bank.

Then customer needs to choose From Account, To Account and Amount.

After that, submit this information to the system.

And then ensure the detailed information and click Confirm button to accomplish the transaction.

Key in his/her iB Secure PIN(for OTP) to complete this transaction

After logout, customer needs to clear cache for security reason.

Figure 4.1 Use Case Diagram for Internet Banking System

Assumption:

Assume that the customer already enter the bank’s home page.

Account holder, credit/debit card holder can conduct this system.

Bank database, User’s account no:, amount of money (transaction), states and other.

Assume, User’s can log out the system after the transaction. User can cancel the system before the transaction.

4.4. Sample Use case specification

1. Login

When customer wants to access their account from bank database, they must need to login the system with User ID and Pin No. The system will prompt error message when the customer may be an invalid user. If valid, customer can access the Main menu page of the Internet banking system.

2. Logout

The system must logout after the customer’s works are done. After logout the system, the customer must need to clear the cache of the system for the security reasons. In this step, customer should have been logged in already.

Figure 4.2 Deployment Diagram for Internet Banking System

Conclusion and Further Study

In this report, we focused on importance and foundation of System Analysis and Design in Internet banking system. We choose Internet banking system as case study because in this recent year, Internet banking becomes a well-known and very useful system among people. We based on a Framework of System Analysis and Design, techniques or approaches System Design, Internet Banking, types of internet Banking, Pros and Cons of Internet Banking, and the last topic is System Design in Internet Banking.

We can study as System Analysis and Design in Mobile banking for future work because this system is also very popular and very convenience. To access this system the customer just need to have mobile phone and just access the transaction with sms.