Mini Project On

E-Banking
Lecturer-in-charge Syeda Madam

Submitted by:

R.G. Kedia PG College

CERTIFICATE

This is to certify that Mr & Miss ___________________ bearing Hall Ticket Number: ______________________ studying in MCA III - I semester has submitted the mini project on _____________________ for OOSD Programming lab.

Lecturer-in-charge

External Examiner

HOD

Findings Primary Data Various people that included office staff help to collect the primary data on the basis of interviews, thoughts & suggestion . Secondary Data The Main sources of the related topic. Secondary data were

combination of information from the internet, periodicals and books of

Hypothesis To understand about how e-banking activity is carried out and how it is easy to use.

Limitations Lack of information pertaining to the various angles of the report. The topic is too vast to be covered in this project. These were main problems encountered by myself.

Index Introduction Types of E-Banking Features Internet Banking Internet Banking in INDIA Features of Internet Banking Advantages & disadvantages Data Flow Diagrams

UML Diagrams

Conclusion

Executive Summary

E-banking- The execution of financial services via internet, reducing cost and increase in convenience for the customer to access the transaction. e- banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. The following terms all refer to one form or another of electronic banking: personal computer (PC) banking, Internet banking, virtual banking, online banking, home banking, remote electronic banking, and phone banking. PC banking and Internet or online banking are the most frequently used designations. It should be noted, however, that the terms used to describe the various types of electronicbanking are often used interchangeably.

The ever increasing speed of internet enabled phones & personal assistant, made the transformation of banking application to mobile devices, this creative a new subset of electronic banking i.e. mobile banking. In 1999 & 2000 mobile banking as an established channels, still seems to be a distant prospect. The internet is revolutionizing the way the financial industry conducts business online, has created new players who offer personalize

services through the web portals. This increase to find new ways and increase customer loyalty to add the value to this product and services.

Banks also enables customers lifestyle needs by changing and increasing preference for speed and convenience are eroding the traditional affinity between customer and branch offices as a new technology disinter mediates traditional channels, delivering the value proposition hinges on owing or earning the customer interface and bringing the customer a complete solution which satisfies their needs. Smart card is a new trend which provides the opportunity to build an incremental revenue stream by providing an ideal platform for extended application and services. Banks are well positioned to play central role unit in future M-commerce market. Banks have strong relationships with corporate and business customers and a wide experience in providing them with corporate banking services. Bank provides a multimedia of small and large retailers with acquiring functionality in credit card transactions. Customers have trusted relationships with banks and a lower propensity to switch banking providers.

INTRODUCTION Traditional banks offer many services to their customers, including accepting customer money deposits, providing various banking services

to customers, and making loans to individuals and companies. Compared with traditional channels of offering banking services through physical branches, e-banking uses the Internet to deliver traditional banking services to their customers, such as opening accounts, transferring funds, and electronic bill payment. E-banking can be offered in two main ways. First, an existing bank with physical offices can also establish an online site and offer e-banking services to its customers in addition to the regular channel. For example, Citibank is a leader in e-banking, offering walk-in, face-to-face banking at its branches throughout many parts of the world as well as e-banking services through the World Wide Web. Citibank customers can access their bank accounts through the Internet, and in addition to the core e-banking services such as account balance inquiry, funds transfer, and electronic bill payment, Citibank also provides premium services including financial calculators, online stock quotes, brokerage services, and insurance. E-banking from banks like Citibank complements those banks' physical presence. Generally, e-banking is provided without extra cost to customers. Customers are attracted by the convenience of e-banking through the Internet, and in turn, banks can operate more efficiently when customers perform transactions by themselves rather than going to a branch and dealing with a branch representative. E-banking services are delivered to customers through the Internet and the web using Hypertext Markup Language (HTML). In order to use ebanking services, customers need Internet access and web browser software. Multimedia information in HTML format from online banks can

be displayed in web browsers. The heart of the e-banking application is the computer system, which includes web servers, database management systems, and web application programs that can generate dynamic HTML pages. One of the main concerns of e-banking is security. Without great confidence in security, customers are unwilling to use a public network, such as the Internet, to view their financial information online and conduct financial transactions. Some of the security threats include invasion of individuals' privacy and theft of confidential information. Banks with e-banking service offer several methods to ensure a high level of security: (1) identification and authentication, (2) encryption, and (3) firewalls. First, the identification of an online bank takes the form of a known Uniform Resource Locator (URL) or Internet address, while a customer is generally identified by his or her login ID and password to ensure only authenticated customers can access their accounts. Second, messages between customers and online banks are all encrypted so that a hacker cannot view the message even if the message is intercepted over the Internet. The particular encryption standard adopted by most browsers is called Secure Socket Layer (SSL). It is built in the web browser program and users do not have to take any extra steps to set up the program. Third, banks have built firewalls, which are software or hardware barriers between the corporate network and the external Internet, to protect the servers and bank databases from outside intruders. For example, Wells Fargo Bank connected to the Internet only after it had installed a firewall and made sure the firewall was sufficiently impenetrable.

On October 1, 2000, the electronic signatures bill took effect, recognizing documents signed online as legal. Some banks plan to begin usin electronic checks as soon as they can work out various security measures. g The range of e-banking services is likely to increase in the future. Some banks plan to introduce electronic money and electronic checks. Electronic money can be stored in computers or smart cards and consumers can use the electronic money to purchase small value items over the Internet. Electronic checks will look similar to paper checks, but they can be sent from buyers to sellers over the Internet, electronically endorsed by the seller, and forwarded to the seller's bank for electronic collection from the buyer's bank. Further, banks seek to offer their customers more products and services such as insurance, mortgage, etc.

Types of E-Banking

The common assumption is that Internet banking is the only method of on-line banking. However,this is not strictly the case, as several types of service are currently available:

PC Banking - The forerunner to Internet banking has been around since the late 1980's and is still widely used today. Individual banks provide software which is loaded on to an SME's office computer. The SME can then access their bank account via a modem and telephone link to the bank. Access is not necessarily via the Internet. Internet Banking - Using a Web browser, a user can access their account, once the bank's application server has validated the user's identity. Digital TV BankingUsing the standard digital reception

equipment (set top box and remote control), users can access their bank account. Abbey National and HSBC services are available via Digital TV providers. One of its main selling points is that no account details are transmitted via the World Wide Web;

Text Phone Banking - HSBC have introduced this service to allow customers with text phones to check their balance, pay bills and transfer money.

Internet banking can be split into two distinct groups:

Traditional banks and building societies use the Internet as an add-on service with which to give businesses access to their accounts. New Internet-only banks have no bricks and mortar presence on the High Street. Therefore, they have lower overheads and can offer higher rates of interest and lower charges.

FEATUERS OF E-BANKING and IRAs Checking with no monthly fee, free bill payment and rebates on ATM surcharges Easy online applications for all accounts, including personal loans and mortgages attention It provides the quick services to their customers. It provides Quality customer service with personal 24 hour account access credit cards with low rates E-Banking provide exceptional rates on Savings, CDs,

 Enables transfer of funds from one place to another(banks). Inter-bank applications like settlement of funds between banks. Enables foreign exchange operations. Exchange of statisticals information amongs banks.

Internet banking, sometimes called online banking, is an outgrowth of PC banking. Internet banking uses the Internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages, and purchasing financial instruments and certificates of deposit. An Internet banking customer accesses his or her accounts from a browser software that runs Internet banking programs resident on the banks World Wide Web server, not on the users PC. NetBanker defines a true Internet bank as one that provides account balances and some transactional capabilities to retail customers over the World Wide Web. Internet banks are also known as virtual, cyber, net, interactive, or web banks.

This is basically the banking industry's attempt to jump on the "ebusiness" band wagon. E-banking is a term that attempts to

broadly describe today's alternate delivery channels. Different banks - and vendors - will describe this differently.

Rather than spending too much time on the term, I'd suggest you open a dialogue with your customers about the types of services they are interested in, and begin to prioritize your investment in these new services. Ideas would include image delivery via Internet, Internet Commercial cash management, and on-line bill pay.

MAIN CONCERNS IN INTERNET BANKING In a survey conducted by the Online Banking Association, member institutions rated security as the most important issue of online banking. There is a dual requirement to protect customers' privacy and protect against fraud. Banking Securely: Online Banking via the World Wide Web provides an overview of Internet commerce and how one company handles secure banking for its financial institution clients and their customers. Some basic information on the transmission of confidential data is presented in Security and Encryption on the Web. PC Magazine Online also offers a primer: How Encryption Works. A multi-layered security architecture comprising firewalls, filtering routers, encryption and digital

certification ensures that your account information is protected from unauthorized access. Internet Banking in India The Internet banking is changing the banking industry and is having the major effects on banking relationships. Even the Morgan Stanley Dean Witter Internet research emphasized that Web is more important for retail financial services than for many other industries. Internet banking involves use of Internet for delivery of banking products & services. It falls into four main categories, from Level 1 - minimum functionality sites that offer only access to deposit account data - to Level 4 sites - highly sophisticated offerings enabling integrated sales of additional products and access to other financial servicessuch as investment and insurance. DRIVERS OF CHANGE Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet banking is a cost-effective delivery channel for financial institutions. Consumers are embracing the many benefits of Internet banking. Access to one's accounts at anytime and from any location via the World Wide Web is a convenience unknown a short time ago. The six primary drivers of Internet banking includes, in order of primacy are:

Improve customer access Facilitate the offering of more services Increase customer loyalty Attract new customers Provide services offered by competitors Reduce customer attrition

The banking industry in India is facing unprecedented competition from non-traditional banking institutions, which now offer banking and financial services over the Internet. The deregulation of the banking industry coupled with the emergence of new technologies, are enabling new competitors to enter the financial services market quickly and efficiently. Features of Internet banking The features available from an on-line bank account are similar to those which are available via 'phone banking or visiting the local branch. Online banking features do differ between the banks, but usually include:

Transfer of funds between accounts; It brings efficiency in CRM(Customer relationship management)

Make Payment of bills Introduces new & innovative products &services. View balance and statements; Brings door to door services.

Create, view and maintain Standing Orders Have evolutionary trend at a globle scenario. Customer can View Direct Debits.

Advantages of Internet Banking Refers to conducting banking transactions through internet. they are, Opening & closing of accountes Make the payments of merchandise transaction through Debit & Credit cards.

It gives reliefs to their customer from carrying heavy cash.

Enables prompt & speedy operation to clients. It saves lot of time to their customers &convenient to access.

Disadvantages of Internet Banking Customer may have to face risky transaction & fraud. Failure of power supply cause to break down of system. Loss of heavy income at times of settlement of higher magnitude.

Cost involved in trainning staff may not be profitable specially in times of attrition.

Development of an attitude of lethargy. Dangers of E-Banking most services suffer from disadvantages, and on-line banking is no exception. Recently, there have been a number of technical incidents,

where customer information was disclosed to other users. Banks have been quick to react, and have either reverted back to the previous system or have solved the problem immediately. The main disadvantages are those related to fear of the unknown. The main fear is that transferring money electronically will somehow cause it to disappear into the electronic abyss. Banks are aware of this concern and do assure account holders that such an event should not occur. There is some speculation, currently, that Internet-only banks will not be able to sustain their high interest rates. Other drawbacks to using Internet-only banks include:

Penalties for phone transactions; Access to cash (ensure that there is sufficient access to ATMs).

We may perceive this method of banking to be instantaneous. For example, when a bill is paid, the expectation is that the transaction is completed with immediate effect. However, this is not the case, as the systems are still connected to the UK clearing system, which takes three working days to clear payments., it appears that in many cases basic risk principles have been ignored in the rush. Banks could lose the whole e-trust business if they are unable to rise to the challenge of meeting customers' ever-rising demands in a secure trading environment. Use Dangers in E-banking to reduce the level of risks to a minimal level whilst ensuring that your business is not justify behind in the race to retain and win new electronic customers.

How can this report help you? - It identifies the major risks which have been encountered so far and pinpoints areas which are to become big risks for e-bankers in the future. Security One of the main concerns with on-line banking is that of security. Fraudulent and accidental security breaches are a rare occurrence. Banks employ many procedures and systems in order to prevent these incidents. As a result they invest a considerable amount of time and money in developing systems which will prevent fraud and unauthorized access. If a security breach is discovered, the bank is liable for all money stolen, and, as a result, insures them against the possibility. The security used in on-line banking is a combination of technology and user authentication. The bank will use a 128 bit Secure Session Layer (SSL) encryption protocol, between its server and the user's browser. The user's browser will show a padlock when the session is secure. Using SSL can be thought of as preventing eavesdropping. If a hacker were to attempt to listen to the data transmission, they would have to guess the decryption key - which is a 1 in 3.4 x10 to the power of 38 chances, making it infinitely secure. From a technology point of view, on-line banking is secure.

The weakest link of on-line banking is user authentication. Typically, a user has to supply a set of answers to questions, which they have previously entered upon registration, as well as a username and password. The banks place the responsibility of keeping these answers

secure with the user. If any are disclosed and money is stolen, the liability lies solely with the account holder, not the bank. With this in mind the following is sound advice to users:

Make sure the Web Address starts https:\\ rather than http:\\, this shows that the session is encrypted; Look for the closed padlock in the browser; Do not use simple or easily guessable passwords (use a combination of letters and numbers) and change it frequently; Do not write down any username, password or any other information required; Always empty the cache of the browser after banking; Always sign-off when you are finished; Do not leave the PC unattended while banking; Do not use the "Auto Complete" feature within the browser; Check the Terms and Conditions for any notes on where you can and cannot access the on-line accounts. (e.g. an Internet caf is not as secure as your home PC); Use additional software that your bank might recommend (firewall or anti-virus software) Keep your Web browser up-to-date with the latest patches and versions; Never send any account information in an email as this is insecure. Be wary of any e-Mails from your bank which ask you to send details via email, banks will not do this; Also, be wary of emails from banks which ask you to log into a Web site and resubmit your details. These fake Web sites have

been set-up by fraudsters. If you are unsure of an email play it safe and contact your bank to verify the email.

System Design

UML Diagrams CONTEXTS DIAGRAM A System Context Diagram is the highest level view of a system, similar to Block Diagram, showing a (normally software-based) system as a whole and its inputs and outputs from/to external factors. The Context Diagrams show the interactions between a system and other actors with which the system is designed to face. They are also typically drawn using labeled boxes to represent each of the external entities and another labeled box to represent the system being developed. The relationship is drawn as a line between the entities and the system being developed . Before we construct the actual process model, we need to establish initial project scope. A project is scope defines what aspect of the business a system or application is supposed to support. It also defines how the system or application being modeled must interact with other systems and the business as a whole. A projects scope is documented with a context diagram

SEQUENCE DIAGRAM UML sequence diagrams model the flow of logic within your system in a visual manner, enabling you both to document and validate your logic, and are commonly used for both analysis and design purposes. Sequence diagrams are the most popular UML artifact for dynamic modeling, which focuses on identifying the behavior within your system. Sequence diagrams, along with class diagrams and physical data models are in experts opinion the most important design-level models for modern business application development. The Message Sequence Chart technique has been incorporated into the Unified Modeling Language (UML) diagram under the name of Sequence Diagram. A sequence diagram shows, as parallel vertical lines, different processes or objects that live simultaneously, and, as horizontal arrows, the messages exchanged between them, in the order in which they occur. This allows the specification of simple runtime scenarios in a graphical manner. The dotted lines extending downwards indicate the timeline, time flows from top to bottom. The arrows represent messages (stimuli) from an actor or object to other objects [9].

Usage scenarios. A usage scenario is a description of a potential way your system is used. The logic of a usage scenario may be part of a use case, perhaps an alternate course. It may also be one entire pass through a use case, such as the logic described by the basic course of action or a portion of the basic course of action, plus one or more alternate scenarios. The logic of a usage scenario may also be a pass

through the logic contained in several use cases. For example, a student enrolls in the university, and then immediately enrolls in three seminars Class Diagrams Static that those models hold of a system the describe Pieces of the out structural relationships into Objects, how

between

data manipulated by the

system. Theydescribe how data is parcelled objects

are categorized, and what relationships can hold

between them. They do not describe the behavior of the system, nor how the data in a system evolves over time. These aspects are described by various types of dynamic model. The most important kinds of static model are object diagrams and class diagrams. An object diagram provides a snapshot of a system, showing the objects that actually exist at a given moment and the links between them. Many different object diagrams can be drawn for a system, each representing the state of the system at a given instant. An object diagram shows the data that is held by a system at a given moment. This data may be represented as individual objects, as attribute values stored inside these objects, or as link

between objects.

DATA FLOW DIAGRAMS

UML DIAGRAMS Class Diagram

UML DIAGRAMS Class Diagram Use Case Diagram Behavioral Diagram

Interaction Diagram Sequence Diagram Collaboration Diagram State Chart Diagram Activity Diagram Implementation Diagram

Component Diagram Deployment Diagram CLASS DIAGRAM Shows the static structure of the model. Collection of static modeling elements such as classes and their relationships connected as a graph. Provides visual representation of objects, relationships and their structures. Class: A class is a set of objects that share a common structure and common behavior. It is represented as: <Class Name> <Attributes> <Operations>

Interface: Specifies the externally-visible operations of a class and/or component. Association: Model properties of associations. The properties are stored in a class and linked to the association relationship. Example, Bank Account Person

Generalization: A generalize relationship is a relationship between a more general class or use case and a more specific class or use case. Example,

Vehicle

Bus

Truck

Car

USE CASE DIAGRAM Set of use cases enclosed by system boundary, communication association between actors and use cases, and generalization among use cases. Actors: External factors that interacts with the system from the user's perspective.

Use Cases: Set of scenarios that describe how actor uses the system. Represented as,

Relationship: Communication communications with the use case normally. Uses Shown by generalization arrow from the use cases. Extends Used when one case does more than another that is similar to it.

BEHAVIOR DIAGRAM INTERACTION DIAGRAM Diagrams that describes how group of objects are collaborated.

SEQUENCE DIAGRAM: Describes the behavior of the system through interaction between the system and the environment in time sequence. Two dimensions: Vertical dimension represents time. Horizontal dimension represents objects.

Life line Object's existence during the interaction.

Object 1 <Event>

Object 2

COLLABORATION DIAGRAM:

An interaction diagram that shows the order of messages that implement an operation or a transaction. Collaboration diagrams show objects, their links, and their messages. Object 1 1. <Event > Object 2

Object: Link: A link is an instance of an association, analogous to an object. A message is the communication carried between two objects that trigger an event. STATECHART DIAGRAM Models the dynamic behavior of individual classes or any other kind of object. Shows the sequences of states, events, and actions. Message:An object has state, behavior, and identity. Objects interact through their links to other objects.

State: Represents a condition or situation during the life of an object during which it satisfies some condition or waits for some event.

<State>

Start State: Shows the beginning of workflow.

End state:: Represents the final or terminal state.

ACTIVITY DIAGRAM Used for modeling the sequence of activities in a process Special case of a state machine in which most of the states are activities and most of the transitions are implicitly triggered by completion of the actions in the source activities. Activity: Represents the performance of task or duty in a workflow. <Activity> Swim lanes: Represents organizational units or roles within a business model.

IMPLEMENTATION DIAGRAM Shows the implementation phase of system development. Two types of implementation diagrams: Component diagram Deployment diagram

COMPONENT DIAGRAM Models the physical components in the design. A graph of the designs components connected by dependency relationships. Includes concept of packages. Package is used to show how classes are grouped together.

DEPLOYMENT DIAGRAM Shows the configuration of runtime processing elements and software components. It is a graph of nodes connected by communication association. Nodes are the components that are connected to other components through dependencies. Used in conjunction with component diagrams to show the distribution of physical modules. UML DIAGRAMS Class Diagram Use Case Diagram Behavioral Diagram

Interaction Diagram Sequence Diagram Collaboration Diagram State Chart Diagram Activity Diagram

Implementation Diagram

Component Diagram Deployment Diagram

Interaction Diagram:i. ii. sequence Diagram Collaboration diagram

Sequence Diagram:-

Collaboration diagram:-

State Chart diagram:-

Activity Diagram:-

Implementation Diagram:i. ii. Component Diagram Deployment Diagram.

Deployment Diagram:-

Object Diagram:-

CONCLUSION Bank-Focused system model, though less risky, does not offer much when it comes to extending financial service outreach to the poor and unbanked. Both Bank-Led and Nonbank-Led system models offer a greater potential to achieve this objective. These system models, however, vary in their potential as well as risks. The decision as to which model must be adopted should be made after carefully weighing the risk -return tradeoff. A careful approach may be adopted to start with the less risky bank-led model and gradually adding more options as the players and stakeholders become more experienced. Once a model of branchless banking is decided upon, work towards creating an enabling regulatory environment for implementation of that model should start. Many components of such an environment are already in place if bank-led system model is adopted. However, Clear guidelines regarding various aspects of allowable activities should be issued to avoid uncertainties. Further, a forceful eradication of any unlawful and unauthorized services and offerings (generally provided by unlicensed players) - which may sprout up - is a must to promote and safeguard the interest of genuine players and the overall system. Banking systems usually contains legacy systems along with very large database systems. For internet banking applications a large number of interfaces are incorporated to facilitate the customers especially in consumer banking applications. Handling of financial transactions requires taking care of various issues including authentication, consumer privacy, money laundering, for liability for unauthorized and transactions, security controls safeguarding information

processing of third-party payments. The processes, services, channels,

and available resources that are included in internet Banking can be categorized in different layers. The layered approach will help in defining different architecture to different sub systems and have metaarchitecture above these architectures. This combination of architecture is capable of handling requirements of banking systems.