1.1 Introduction
A Web-Based System for Internet Banking refers to a technological platform that allows financial institutions to offer banking services through the internet. These systems enable customers to access their accounts, transfer funds, pay bills, check balances, apply for loans, and perform a variety of other financial services without the need to visit a physical branch. Internet banking, also known as online banking, utilizes web technologies to connect users to their financial institutions via secured internet portals, ensuring a seamless, real-time, and user-friendly experience (Vaidya & Bhavsar, 2020). The increasing reliance on digital technologies has significantly transformed the banking sector, with online banking becoming a standard method of conducting financial transactions. Internet banking systems have evolved from simple account inquiry services to fully integrated platforms supporting a wide array of financial products and services (Sharma & Agrawal, 2021).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitation of the study and Definition of technical terms.
1.2 Background of Study
The banking industry has undergone significant transformations in recent decades, driven largely by advances in information technology. Among the most notable changes is the shift from traditional brick-and-mortar banking services to digital platforms that offer more convenience, efficiency, and accessibility for customers. A Web-Based System for Internet Banking plays a pivotal role in this transformation, enabling users to manage their financial activities online without needing to visit a physical bank branch. This evolution of banking services is in response to the increasing demand for 24/7 accessibility, the rise of mobile internet usage, and the need for efficient financial operations.
Over time, the development of internet banking has become a global phenomenon, with financial institutions around the world integrating web-based systems into their business models. The continued evolution of internet banking has been driven by technological advancements such as artificial intelligence, blockchain, and machine learning, which have been incorporated into these systems to improve functionality, security, and efficiency (Mohammad & Ismail, 2020). The rapid adoption of broadband internet and the introduction of mobile internet in the early 2000s further accelerated the growth of internet banking. As smartphones and other mobile devices became more widespread, banks began to recognize the potential of mobile banking, which complemented their web-based platforms by allowing customers to conduct banking transactions on-the-go (Kumar et al., 2019).
Internet banking, also known as online banking, has become an integral part of the modern financial ecosystem. It encompasses a wide array of banking services provided over the internet, such as account management, funds transfer, bill payment, loan application, and the ability to track transaction history, all accessible from personal computers or mobile devices. According to Vaidya & Bhavsar (2020), the adoption of web-based banking systems allows customers to perform banking tasks in a more convenient, cost-effective, and secure manner. The user-friendly nature of these platforms ensures that even individuals with limited technical knowledge can effectively use the services, contributing to a broader user base.
The implementation of web-based banking systems has led to a dramatic shift in customer expectations. in the past, banking was largely dependent on in-person interactions at physical locations, limiting access to banking services, especially for individuals in remote areas. However, with the advent of internet banking, financial services have become more inclusive, enabling users to conduct transactions anytime and anywhere. This digital shift has been particularly beneficial in regions where traditional banking infrastructure is scarce, making banking services more accessible to underserved populations (Sharma & Agrawal, 2021). However, despite the numerous benefits, the implementation of web-based internet banking systems is not without challenges. Security remains a primary concern for both banking institutions and customers. As online banking systems deal with sensitive financial information, they are prime targets for cyber-attacks, fraud, and data breaches.
The challenges encountered that led to the execution of the research work is that, many existing web-based banking systems remain vulnerable to cyber attacks, such as phishing, man-in-the-middle attacks, and data breaches. Hackers can exploit these vulnerabilities to steal sensitive user information, including login credentials and financial data. In some cases, banks may lack the necessary real-time monitoring or proactive security measures, leaving users' financial data at risk. It is against the background that the developments of this software will help financial institutions improve the security, scalability, and usability of their online platforms, ensuring that both banks and customers benefit from a more efficient and reliable banking experience.
1.3 Statement of Problem
Investigation revealed that the existing system often lack the necessary responsiveness for mobile devices, creating challenges for users who rely on smartphones and tablets for banking activities. In addition, several existing systems are not fully optimized for seamless integration with modern technologies, limiting their ability to support advanced features like artificial intelligence (AI)-based customer support, chatbots, and automated financial advisory services.
Furthermore, existing systems are often fragmented, with multiple platforms for different services, such as loan management, account opening, and bill payments. Also, many financial institutions struggle with creating secure, user-friendly, and scalable systems that meet the needs of their customers. The complexity of developing an internet banking system that is both functional and secure is a major obstacle faced by banks worldwide.
1.4 Aim and Objectives of the Study
The aim of the study is to design and implement a web based system for online banking. The objectives of the study are as follows:
- To design a comprehensive and secure web-based banking system that enables users to perform essential banking activities such as balance inquiry, fund transfers, bill payments, and transaction history viewing.
- To implement advanced security measures, including encryption protocols and multi-factor authentication, to safeguard sensitive customer data and protect the platform from cyber threats such as hacking, fraud, and identity theft.
- To develop a scalable system architecture capable of handling a large number of concurrent users and high transaction volumes, ensuring system performance and reliability even during peak usage periods.
- To create an intuitive and user-friendly interface that accommodates a wide range of users, from individuals with basic digital literacy to those with advanced technological skills, thereby enhancing the overall customer experience.
1.5 Significance of Study
The implementation of the proposed system will contribute significantly to the advancement of internet banking by providing a detailed approach to the design and implementation of a web-based system that addresses key challenges in the banking sector. It will also help financial institutions improve the security, scalability, and usability of their online platforms, ensuring that both banks and customers benefit from a more efficient and reliable banking experience.
Furthermore, the design of a secure system will mitigate risks associated with online fraud, identity theft, and cyber-attacks, fostering greater trust among customers and enhancing the reputation of financial institutions.
Lastly, the system implementation will also serve as a guide for financial institutions seeking to enhance their digital offerings by addressing the technical, security, and user experience challenges associated with the implementation of web-based banking systems.
1.6 Scope of Study
The scope of the research is focused on the design and implementation of a web based system for online banking.
1.7 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this research work. There were lots of information needed from the staffs of this institution to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet).
1.8 Definition of Terms
Internet Banking:
Internet banking, also known as online banking, refers to a system that enables customers of financial institutions to conduct financial transactions through the internet. It provides services such as fund transfers, account monitoring, bill payments, and loan applications without the need to visit a physical bank branch (Auta, 2010). In this project, internet banking is viewed as a means of delivering banking services efficiently and securely using web-based platforms.
Web-Based System:
A web-based system is any application or software that is accessed and operated through a web browser over a network such as the Internet or an intranet. It typically does not require installation on the client side and allows users to interact with the system in real time. In this context, it refers to the online platform through which customers interact with their banks for internet banking services (Laudon & Laudon, 2015).
Authentication:
Authentication is the process of verifying the identity of a user or system. It is an essential part of internet banking security, ensuring that only authorized users gain access to sensitive financial information or functionalities. Common authentication methods include usernames and passwords, security tokens, and biometric verification (Stallings, 2017).
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