CHAPTER ONE

1.1INTRODUCTION

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.

 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.

 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 bankingindustries 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 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:

•             
Verify whether an account is credited or
debited, wirelessly using GSM handset or internet.

•             
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.

May fresh Bank cannot automatically
contact their customer whose account number has been credited or debited as a
result of lack of automated system.

1.3OBJECTIVES OF THE PROJECT

•      To
improve in the speed, effectiveness, efficiency and convenience in business
transaction.

•      To
design and implement a computer software to solve this problem and rendering
the services.

•      To
design a friendly web-site that graphically advertises goods and services
provided by the institute on web pages.

•      To
provide an On-line banking database for May fresh Bank using MySQL database.

•      To
interface the client and server side in a cost effective and efficient manner.

•      To
generally enhance the operational capacity of May fresh Bank via ICT.

•      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.

1.4SCOPE
OF THE PROJECT

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.

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 .

1.7ORGANIZATION 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.

1.8DEFINITION OF TERMS

•      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

•      Design: Process of developing the
technical and operational specification of a candidate system for implements.

•      Implementation: In system
development-phase that focuses on user training, site preparation and file
conversion for installing a candidate system.

•      Operation System: In database – machine
based software that facilitates the availability of information or reports
through the DBMS. 

•      Password: Identity authenticators a key
that allow access to a program system a procedure. 

•      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.

•     
System
Design: Detailed concentration on the technicaland other

specification that will make the
new system operational.

•      System Testing: Testing the whole
system by the user after major programs and subsystem has been tested.

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