Introduction of Banking Management System:

Are you looking for a Banking management system project? We are here to help you. You can contact us. The banking management system sector has seen some greatest expansion in the past year and with the number of customer interactions increasing the day it has totally all the records in the database.

When it comes to managing the money or valuable assets it automatically becomes a crucial matter for the service provider and the client as well for the trustworthiness. The banking management system is one of the most complex systems because the things it covered under the roof for transparency among the customers.

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From managing the customer information, account information to the transaction happening every minute or second. It does not only preserve the details of the transaction and other information but generates the report to further banking functions. In this banking management system, there are many operations that are automated which ease the work for the working of the bank.

This reduces the requirement for manual labor and the automated tasks will be error-free as they will only work as they are programmed whereas doing work manually there is always a possibility of human error.

The major modules of this system are as follows:

  • Branch (Bank)
  • Customer
  • Accounts
  • Transactions
  • Employees (Bank)

As it simplifies most of the manual tasks for the bank but there is a major concern over the security of the data and assets of the customer so it is very important to keep up with security features and tested each module carefully while deploying. This digitization of the bank will help the bank in every aspect of its growth.

It will not only make the work easy but significantly improve the speed of work as there are no physical files or data sheets will be there to manage everything will be managed logically with the system and machine. The information about the customer or if the customer wants to know their information will be just some clicks away and with an increase in transparency between the customer and fast service it will automatically get the trust of customers.

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Existing System of Banking Management System:

The existing bank system is slow as every task is being performed by the human being and comparing the computer task speed with a computer is not fair. The complexity of this system is increased when an increase in the number of customers and with that there will be a number of transactions will be performed now everything needs to log in to a file for reference in the future which is simply not the kind of scenario we need at this time.

Some other drawbacks of the existing system:

  • Less security of customer and bank information.
  • Require more physical work and manpower.
  • All the manual entry and editing will take more time.
  • No level of clearance for the different levels of employees.
  • Safety of paper documents from the disaster.
  • No backup of the information.

The by looking at disadvantages these are pretty serious for any banking system as they are capable of bringing down the whole system. By digitalization in the banking system, it will not only achieve its goals and also will give some benefits like less manual calculation will be required.

Some improvements by executing the proposed system:

  • More secure information will give a layer of security of authentication and authorization.
  • Required very little manpower.
  • Simplify the problem of editing.
  • Maintain the clearance level by the hierarchy.

The information will be secure from the different types of disasters as there will be an automatic backup system for the customer and bank information.

  • Maintain data integrity Validate the manual calculations avoid calculation error.
  • Safeguard the data accuracy.
  • More reliable and efficient.
  • More user-friendly interface.

Major Modules of Banking Management System:

Bank Branch:

Almost all banks will always have multiple branches expanded over multiple cities. To manage those branches throughout the system we have this module it will keep the manageability of the branches and provide a unique identity to every branch. Every branch will have its unique identification number and a branch name.

From this module, we can easily identify the branch location and the other information like employees working at that branch. For communication purposes, there will a permanent phone number and then there is a manager who will manage the whole branch. All major decisions for the branch will be taken by the manager and the first point of contact person for the head office will be a manager.

The branch module will also help banks find out about their performance at a different location so they evaluate on this improve the customer service quality. There will always some kind of special benefit for the people of the home branch.


These are the main source of business for the bank. The number of the customer will improve the position in the market. There are different types of customers from the common people to the businessman and everyone has an account on the priority of they require it.

The different types of customers are:

  • Individual Account holders
  • Joint account holders
  • Partnership firm holders
  • Limited liability companies
  • Clubs and Associations
  • Trusts

These are the persons or group which can have the account on the bank for their individual or business or non-profit work.


Every customer will become a customer when they open an account in the bank start depositing the money or take some other service. The account enables the customer to take advantage of the facilities provided by the bank. Every customer has their unique account number and the bank will identify you by only that account number.

The account number will be the same for all the branches of that particular bank. This will hold the balance in account, interest which is provided by the bank to that customer and if the customer is active this will be defined by the last transaction done by the customer forex. The saving account usually remains active for 6 months with no transaction after that it needs to be reactivated.

Further the types of account a customer can have are:

  • Savings Accounts
  • Current Account
  • Checking Accounts

These are some types of accounts users can have according to their use and priority. All different types of accounts have their own benefit for the customer. Some other things a customer can opt for are a locker or fixed deposits.


Every time an account holder performs some activity on the account it will be updated through transactions this is like logs but only showing the required details. Any time a customer makes any changes in an account like pay or deposit it will be through transactions. This helps in keeping the track of cash flow in the bank.

Also, help in managing the correct information if there is some data loss to the bankside or if there is any query at the customer side.

Bank Employees:

Even after all the digitization of the bank, there will always be a requirement of an eligible employee for the correct management of events. Employees are the backbone of any bank and to manage the number of employees we have this module. Their information will be kept separately from the customers.

All the employees will get their unique employee id similar through all branches of the bank. They will have a different level of clearance to get information. All will be provided with secret authentication details required to log in on their respective systems to work so no other person can interfere with their working ground.

It will give the idea in which department they working and what is their designation while working there.

Er Diagram of Banking Management System:

An entity-relationship diagram (ERD) represents the relationships among entity sets stored in a database. An entity in this context is a component of data. We can say that ER diagrams illustrate the logical structure of databases. At first, peek an entity-relationship diagram that looks similar to a flowchart. It is the different symbols, and the meanings of those symbols, that make it unique.

In the Banking management system, we take the following entity shown in the figure below:


This entity contains the details about the location of the branch. This will not help management but separate the employee from branch to branch and customers.

The attributes of this entity are:


This will be the primary key for the entity. This will help to search and sorting uniquely in the table of branch entity.


This attribute will help in verifying the identity of the branch if the branch is led to confusion.


It will contain the city where the branch is located.


This attribute will hold the name of the country.


This phone number will be helped in communicating with the branch. This number is only for banking use not for public use. For the public, there will be a single number at all the bank branches.


This will be the Employee-id of the person who is managing the branch. To identify the manager, we can take this in and search in the employee table by joining the Departments’ table where the designation is a manager.


The employee entity contains all the information about the employees working in different branches of the bank. This will enable them to manage the employee data easily. Searching for the information will just a few clicks. It will have all the necessary attributes required for the employer.

It has the following attributes:


This will be the primary key for this entity. It will help in identifying the particular employee easily. This gets useful when two employees have similar name-like conditions.


This is required for the verification purpose. Usually on government issued id cards it has a name as identification.


In any case when the employee’s address needed for example sending an email or documents at the employee’s residence.

Er Diagram of Banking Management System:


It is good to have employee’s contact number to have immediate communication.


It is required when a bank needs to make an announcement. So, they will select the employees emailed and simply broadcast the announcement.


This will help to identify at which branch the employee is working currently. We can find the branch details from the Bank-branch table.


The department will have a different id for the manager, clerk, and other designation so we can find the job profile of the employee.


Every employee will have the account in the bank this will give their account details.


This entity will help in keeping the track of the job profile of the employee. Each profile will be assigned to one department in which will have the details about their job.

It will have the following attributes:


This is the primary key for the table it will help identify each job profile uniquely in with the department.


It will contain the name of the department to avoid confusion to clear and avoid the confusion from the id.


It will take the employee id as a value which will define that a particular person/employee is the head of that department.


To know about the designation of the employee like if the employee hold manager or HOD or any other designation.


This entity of the banking management system has the details of the customer. It will not contain the banking details but the personal details of the customer which will link to the account by the account number of the customer. After opening an account every user will get one unique account number.

It has the following attributes:


This is the primary key the particular table. It will be used to find the customers personal details.


The customer will be for the document verification for the account opening.


To send any envelope to the customer’s residence or any contact to the address.


To communicate with the customers over the phone.


To send any offer from the bank to the customer or formal communication with the customer.


This will talk about the home branch of the customer. Like where the user has opened his/her account in the bank.


This will link the account to the user’s banking details like the transaction or the balance of this account holder.


This table will contain all the banking account details of the customer. The balance and type of account such type of information will be contained by this entity.

It has the following attributes:


This is the primary key for the particular table. It will be linked with the customer table’s attribute of customer id. Each customer id will have a separate account number.


To identify the location of the branch where the customer has opened the account.


This is required to link the correct account number to particular customer id.


This will give the idea about the type of account the customer is holding like it could be saving or current or something according to that interest will be calculated.


How much money a customer has left in the account.


The interest is given by the bank to the customer for crediting the money into the account.


If the customer’s account has been idle for a particular time, then it should be disabled. The customer should make a transaction to keep their account active.


This gets generated every time a customer update or makes changes to an account in any way. This acts as a log but for or transfer of money and other changes.

This entity contains the following attributes:


The person’s account number who has made the changes in the account.

Date Times tamp:

The exact date and time to save the information and roll back if there is an error that occurs that’s why the exact time needs to be saved.


It will contain the id of the employee who is responsible for looking at the particular account so if there is any unwanted thing happen, they can contact.


From this attribute, it will be clear if the user has credited the amount or debited the amount from that transaction.


It will create loan is from this attribute if the user ever applies for a loan this will hold those details.


This value will be held the value that how the transaction has been made if it was an online mode, bank credit or ATM deposit, etc.


This entity of banking management system is for the customer who has applied for a loan from the bank. This will hold the details of the loan for a particular account number. If the customer does not have any loan, it will have null values for the particular account.

It will have the following attributes:


This is the primary key in this table. This will be linked with an account number so direct information can be fetched if required.


To link the customer details with the loan id.


The rate of interest bank is charging on the loan given to the customer.


The duration of the loan that how much time it will take to complete when the user starts to credit the installments of the loan.


From when the instalment started to credit the account.


It will hold how much the amount has been credited and how much is left more. “Banking Management System” keeps the track of day and time’s tally record as a complete banking process. It can keep the information of the Account and Search the transaction, Transaction report, Individual account opening form, Group Account.

It displays Transaction reports, Statistical Summary of Account type, and Interest Information. This provides all-time service to the customer provided by the other banks.