Bank Management System

Submitted in partial fulfillment of the requirements of

Second Year
in
B.E(Artificial Intelligence and Data Science)

By

Janvi Aher 02
Sneha Autade 03
Shruti Barge 07
Urmila Kshirsagar 46

Supervisor
Prof. Mrs.Aarti Sonawane

Department of Artificial Intelligence and

Data Science
DATTA MEGHE COLLEGE OF ENGINEERING, AIROLI,
NAVI MUMBAI - 400 708

University of Mumbai
(AY 2024-25)
 CERTIFICATE

This is to certify that the Mini Project 1A entitled “Bank Management System” is

a bonafide work of Janvi Tushar Aher (02), Sneha Autade (03), Shruti Barge

(07), Urmila Kshirsagar (46) Submitted to the University of Mumbai in partial

fulfillment of the requirement for the award of the degree of “Bachelor of

Engineering” in “Artificial Intelligence and Data Science”.

(Prof. Mrs.Aarti Sonawane)

Supervisor

Dr. S. M. Patil Dr. P. A. Dode

Head of Department Principal
 Mini Project Approval

This Mini Project entitled “ Bank Management System ” by Janvi Tushar Aher (02) ,

Sneha Autade (03), Shruti Barge (07), Urmila Kshirsagar (46) is approved for the

degree of Bachelor of Engineering in Artificial Intelligence and Data Science.

Examiners

1………………………………………
(Internal Examiner Name & Sign)

2…………………………………………
(External Examiner name & Sign)

Date:

Place:
DECLARATION

I declare that this project represents my ideas in my own words without plagiarism
and wherever others' ideas or words have been included, I have adequately cited
and referenced the original sources. I also declare that I have adhered to all
principles of academic honesty and integrity and have not misrepresented or
fabricated or falsified any idea/data/fact/source in my project work. I
promise to maintain minimum 75% attendance, as per the University of Mumbai
norms. I understand that any violation of the above will be cause for disciplinary
action by the Institute.

Yours Faithfully

1. Janvi Aher

2. Sneha Autade

3. Shruti Barge

4. Urmila Kshirsagar

(Date & Signature of Students)

Contents

Abstract ii

Acknowledgments iii

List of Abbreviations iv

List of Figures v

List of Tables vi

List of Symbols vii

1 Introduction 1
1.1 Introduction
1.2 Problem Statement & Objectives
1.3 Organization of the Report

2 Literature Survey 11

2.1 Survey of Existing System

3 System Design 18
3.1 Architecture/ Framework
3.2 Algorithm and Process Design
3.3 Software Stack
4. Implementation and Results 30
4.1 System Implementation
4.2 Results

5. Conclusion and Future Scope 40

References
 ABSTRACT

A Bank Management System (BMS) is an advanced software platform that

centralizes and automates various banking operations, improving the efficiency,
accuracy, and security of financial institutions. At its core, a BMS manages
critical tasks such as customer account handling, transaction processing, loan
and mortgage administration, and customer relationship management (CRM).
By automating these functions, it reduces manual intervention, thereby
minimizing errors and improving operational speed.

One of the key benefits of a BMS is real-time access to banking data, enabling
instant tracking and analysis of financial activities. This not only improves
internal reporting but also enhances decision-making by providing insights into
cash flow, liquidity, and risk exposure. Banks can better manage their
resources and comply with regulatory requirements, such as anti-money
laundering (AML) protocols and Know Your Customer (KYC) regulations.

A modern BMS integrates customer-facing services like internet and mobile

banking, enabling clients to access banking services remotely, at any time.
Artificial Intelligence (AI) and machine learning are often embedded in these
systems, offering enhanced customer support via chatbots, personalized
financial advice, and fraud detection mechanisms.

From a risk management perspective, a BMS offers robust tools for monitoring
market, credit, and operational risks. It helps in managing assets and liabilities
while safeguarding against financial threats by providing real-time alerts and
comprehensive risk analytics. Furthermore, BMS solutions are often scalable,
meaning they can grow alongside the institution, supporting new services like
cryptocurrency transactions or digital payment systems as they become
relevant.

The use of data analytics in BMS allows banks to gain valuable insights into
customer behavior, helping them tailor products and services to meet evolving
demands. This enhances customer satisfaction and loyalty, while also helping
banks remain competitive in an increasingly digital financial ecosystem.
 ACKNOWLEDGEMENT

I would like to extend my sincere gratitude to everyone who contributed to

the successful completion of this report on Bank Management System .First and
foremost, I would like to thank my supervisor, Mrs. Aarti Sonawane, for their
invaluable guidance, insightful suggestions, and
continuous support throughout this project. Their expertise greatly
contributed to shaping the research and analysis in this study.

I am also deeply appreciative of the resources and tools that facilitated the
data collection and analysis process. Special thanks to the creators and
maintainers of the libraries and platforms that enabled the smooth extraction,
processing, and visualization of bank data. Their contributions made it
possible to analyze and derive meaningful insights from large datasets.

Lastly, I would like to thank my family, friends, and peers for their constant
encouragement and support during this project. Their motivation kept me
focused and driven to accomplish this analysis. I am incredibly grateful to
each of them for being a part of this journey.
LIST OF FIGURES:

Fig 3.1.1 Block diagram

Fig 3.2.1 user simulation
LIST OF TABLES
Table 2.1.1 Literature Survey
1.Introduction :

1.1 Introduction

A Bank Management System (BMS) is a software application designed to

streamline and automate a bank's core operations. It integrates various functions
like account management, transaction processing, customer relationship
management (CRM), and loan processing into a unified platform. The primary
goal of a BMS is to improve operational efficiency, reduce errors, and enhance
customer service by automating daily tasks and providing real-time access to
critical data.

Modern BMS solutions often include features like mobile banking, AI-driven
customer support, and risk management tools. These systems not only support
regulatory compliance, such as Know Your Customer (KYC) and anti-money
laundering (AML) regulations, but also offer real-time monitoring of financial
transactions to ensure security and prevent fraud. Additionally, a BMS helps in
data analytics, providing insights into customer behavior and helping banks make
data-driven decisions to improve service offerings..

1.2 Problem Statement & Objectives

Problem Statement:
In today’s fast-paced banking environment, banks face several challenges in
managing day-to-day operations efficiently. These include the need for accurate
and real-time management of customer accounts, processing of financial
transactions, loan approvals, and ensuring regulatory compliance such as Know
Your Customer (KYC) and anti-money laundering (AML) laws. Traditional
manual processes are time-consuming, error-prone, and inefficient, resulting in
poor customer service, increased operational costs, and heightened risk of
financial fraud.

Thus, there is a need for a Bank Management System that integrates all core
banking functions into a single, secure platform. This system should automate
routine tasks, enable real-time data access, provide customer-centric digital
banking services, support regulatory compliance, and enhance risk management
to help banks operate more efficiently and securely.
 Objectives:
1. Automation of Core Banking Operations:

To streamline and automate daily banking tasks such as account management,

transaction processing, and loan management, reducing manual errors and
improving operational efficiency.

2. Enhancement of Customer Service:

To provide customers with seamless, 24/7 access to banking services through

digital channels like mobile and internet banking, improving customer
satisfaction and engagement.

3. Risk Management and Compliance:

To ensure real-time monitoring and management of risks, as well as compliance

with regulatory requirements such as Know Your Customer (KYC) and anti-
money laundering (AML) regulations, enhancing the security and integrity of
banking operations.

1.3 Organization of the Report

Introduction
● 1.1 Introduction: Overview of growth of bank management system and
importance as a economic platform, emphasizing the need to understand engagement
dynamics.
● 1.2 Problem Statement and Objectives: Identifies challenges in
achieving meaningful engagement and outlines objectives to analyze
engagement patterns, content strategies, and trends.
● 1.3 Optimization of the Report: Explanation of how the report is
structured for clarity and effectiveness.

Literauture Survey
 2.1 A survey of existing Bank Management Systems (BMS) reveals a variety
of solutions tailored to meet the diverse needs of financial institutions. Many
contemporary systems focus on automating core banking functions, such as
account management, loan processing, and transaction handling, leading to
improved operational efficiency and reduced human error
System Design
 3.1 Architecture/Framework: Description of the modular design, data
flow, and how the system is organized to support data analysis and
machine learning through a user-friendly interface.
 3.2 Algorithm and Process Design: Details of data processing,
visualization techniques, and prediction models used to analyze and
predict engagement rates.
 3.3 Software Stack: Overview of the tools, frameworks, and libraries
used, highlighting their roles in data manipulation, visualization, and
model building

Implementation and Results

● 4.1 System Implementation: Explanation of data collection, storage,
processing, and analysis methods, along with security and compliance
measures.
● 4.2 Results: Presentation of key insights from data analysis, including
visualizations that illustrate engagement patterns and model
predictions.

Conclusion and Future Scope

● 5.1 Conclusion: Summary of the findings, highlighting how the
analysis can help improve Banking for investors and
Shareholders.
● 5.2 Future Scope: Suggestions for future enhancements, including
advanced AI integration, real-time feedback tools, and strategies for
emerging Banking features.

References
● Relevant Sources: Citations of studies, research papers, and articles
that provide background and support for the analysis.
2.Literature survey
2.1 Survey of Existing System

Sr.no Author, Title, Journal Important findings

& Year of publication
1. "Banking Regulation, Risk This comprehensive guide provides
Management, and Compliance: insight into banking regulations and risk
Theory, Practice, and Key Problem management. It covers various aspects of
Areas" by Alexander Dill (2020) bank regulation, corporate governance,
and compliance, essential for both
students and professionals in banking
and finance

2. "Generative AI for Leaders: Unlocking This recent work addresses how

the Future of Bank Management" by generative AI is transforming banking
Amir Husain (2022) operations, providing leadership
strategies for its integration in financial
services

Table 2.1.1 Literature Survey

1. "Banking Regulation, Risk Management, and Compliance: Theory, Practice, and

Key Problem Areas" by Alexander Dill (2020) -

Banking Regulation, Risk Management, and Compliance: Theory, Practice, and Key
Problem Areas" by Alexander Dill provides an extensive overview of the primary aspects of
banking regulation in the U.S., emphasizing the frameworks for risk management and
compliance. Here are some key points:

 Regulatory Frameworks: The book examines micro-prudential and macroprudential

regulations, alongside consumer protection and anti-money laundering/counter-terrorism
financing (AML/CFT) measures. It outlines how these regulations help mitigate various
risks inherent in banking operations, including credit, interest rate, and systemic risks.
 Risk Management: Dill emphasizes the importance of integrating risk management
practices within the banking business model, highlighting how credit intermediation
creates fundamental risks that regulators aim to address.
 Global Standards: While focused on U.S. regulations, the book frequently references
standards from the Basel Committee on Banking Supervision, offering comparisons with
regulatory practices in the UK and EU, thereby providing a global perspective on bank
regulation.
 Corporate Governance: The author discusses the role of corporate governance in
managing risks, suggesting that strong governance structures are vital for compliance
with regulatory expectations.
 Target Audience: The book serves as a resource for legal, risk, and compliance
professionals, as well as students in finance-related fields, aiming to bridge knowledge
gaps and unify fragmented studies of banking regulations.

This comprehensive treatment not only targets practitioners but also provides insights for
policymakers and finance professionals looking to deepen their understanding of banking
regulations and compliance systems.

2. "Generative AI for Leaders: Unlocking the Future of Bank Management" by Amir

Husain (2022)

"Generative AI for Leaders: Unlocking the Future of Bank Management" by Amir

Husain focuses on leveraging generative AI to transform banking practices. Key points
include:

 Understanding Generative AI: It explains the fundamentals of generative AI and its

transformative potential in banking operations, enhancing productivity and
innovation.
 Strategic Implementation: The book emphasizes the need for a coherent strategy to
integrate generative AI within organizations to unlock its full benefits.
 Challenges: It addresses challenges such as bias, security, and regulatory compliance
that leaders must navigate when implementing AI technologies.
 Concrete Applications: The text provides actionable insights with over 75 ideas for
practical applications of generative AI in banking​
3. SYSTEM DESIGN

3.1 Architecture/ Framework

 Overall structure:
· User Interface: Separate interfaces for customers and bank staff, allowing access to
various banking services.

· Application Layer: Core banking functionalities, including account management,

transaction processing, loan management, and reporting tools.

· Database Management System: A secure database that stores customer information,

transaction records, and compliance data.

· Security Layer: Protocols for data encryption, user authentication, and access control to
ensure data integrity and privacy.

· Integration Module: Interfaces with third-party services, such as payment gateways and
regulatory compliance tools, facilitating seamless operations.

 Data flow Architecture

A dataflow architecture for a Bank Management System (BMS) outlines how data moves
between different components within the system.

User Input: Data enters through the user interface (e.g., account creation, transaction
requests).

Processing Layer: The application layer processes the data using business logic (e.g.,
validating transactions, managing loans).

Database Interaction: Processed data is sent to the database management system for
storage or retrieval.

Output Generation: Results are sent back to the user interface, providing feedback
(e.g., transaction confirmation, account balance

Integration Module: Data can also flow to external systems for compliance, reporting,
or payment processing.

This architecture ensures efficient data handling and enhances the overall user experience.

1. User Interface(UI):
For a Java Bank Management System, the User Interface (UI) can be designed using Java
Swing or JavaFX. The UI should include:
 Login Screen: A secure login form for both customers and bank staff, including
username and password fields.

Dashboard: A main interface displaying account balances, recent transactions, and

options for account management.

Account Management: Interfaces for opening new accounts, viewing account details,
and closing accounts.

Transaction Processing: Forms for depositing, withdrawing, and transferring funds.

Loan Management: Sections for applying for loans, viewing loan status, and
managing repayments.

Reports Section: Options to generate and view reports on transactions and account
activities.

Help/Support: A section providing FAQs and contact information for customer

support.

2. Data Loading and Caching:

· Data Loading: This involves fetching data from the database, typically using JDBC (Java
Database Connectivity) for operations like retrieving account information or transaction
history. Efficient queries and pagination can enhance loading times.

· Caching: Implementing caching strategies, such as using HashMaps or libraries like

Ehcache or Redis, can significantly improve response times. Frequently accessed data, such
as customer details and account balances, can be stored in memory to reduce database calls
and enhance user experience.

3.Component-Based Design:

Each functionality (data processing, visualization, machine learning) is isolated into

separate functions. This modular approach helps in code reusability and
maintainability, allowing for easy updates or expansions.

4. Workflow Overview:
Users can follow a step-by-step workflow from exploring existing
data insights to predicting engagement rates for new inputs.
 Fig 3.2.1 Block diagram

3.2 Algorithm and Process Design

1. Data Input

 User Interaction: Customers and bank staff input data through the user interface, such
as account creation, transaction requests, and loan applications.
 Validation: Input data is validated for accuracy and completeness (e.g., checking
account numbers, ensuring required fields are filled).

2. Processing Layer

 Business Logic: Java classes and methods implement the core functionality:

o Account Management: Creating, updating, and deleting accounts.

o Transaction Processing: Managing deposits, withdrawals, transfers, and
ensuring sufficient balance.
o Loan Management: Processing loan applications, calculating interest rates, and
managing repayments.

3. Database Interaction

 Database Connection: Establishing a connection to the database using JDBC (Java

Database Connectivity).
 CRUD Operations: Performing Create, Read, Update, and Delete operations on the
database:

o Creating Records: Inserting new customer or transaction records.

o Retrieving Records: Querying the database for account details or transaction
history.
o Updating Records: Modifying existing data (e.g., updating account balances).
o Deleting Records: Removing records as needed (e.g., closing an account).
4. Data Security

 Encryption: Ensuring sensitive data (e.g., passwords, transaction details) is encrypted

before storage and during transmission.
 Access Control: Implementing user authentication and authorization mechanisms to
ensure that only authorized users can access certain functionalities.

5. Output Generation

 User Feedback: Displaying results back to users through the interface, such as
transaction confirmations or error messages.
 Reports: Generating reports (e.g., account statements, transaction history) that can be
viewed or downloaded by users.

6. External Integration

 APIs: Interfacing with third-party services for additional functionalities (e.g., payment
gateways, regulatory compliance).
 Data Synchronization: Ensuring data consistency between the BMS and external
systems.

7. Data Logging and Monitoring

 Logging Transactions: Keeping track of all transactions and changes made within the
system for auditing purposes.
 Monitoring: Implementing monitoring tools to oversee system performance and
detect any anomalies or potential security threats.

 User Simulation :

· Start: The simulation begins.

· User Login: The user logs into the system.
· Main Menu: The user is presented with options for account management, transaction
processing, or loan management.
· Account Management: Options include:

 View Balance
 Deposit Funds
 Withdraw Funds
 Transfer Funds

· Transaction Processing: This is handled within the main menu, directing users back to it
after transactions.
· Loan Management: Options include:

 Apply for Loan

 View Loan Status

· Logout: The user logs out, leading to the end of the simulation.
· End: The simulation concludes.

Fig 3.2.1 user simulation

3.2 Software Stack:

Frameworks and Libraries

 Frontend:
Java Swing for desktop applications.
HTML, CSS, JavaScript for web interfaces.

 Backend:
Java for core logic and server-side processing.

 Database:
MySQL for relational database management.

Development Environment
● Java : Primary language used for the development.
● Intellij: The development environment used to test the code.
● GitHub: For version control, enabling collaboration and tracking
of changes.
4. Implementation and Results:
4.1 System Implementation

Overview
The Bank Management System (BMS) is developed using Java and AWT
(Abstract Window Toolkit) to create a graphical user interface. The system
automates banking operations, enhancing efficiency and security.

Key Components
1.User Interface (UI)

 AWT Components: Utilize AWT for creating forms, buttons, and dialogs
for user interactions (e.g., login, account management, transaction
processing).
 Main Menu: Provides options for customers and bank staff to access
various functionalities.
2.Core Functionality

 Account Management:
 Create, update, and delete customer accounts.
 Store customer details in a database.
3.Transaction Processing:
 Implement deposit, withdrawal, and transfer functionalities.
 Maintain transaction history for each account.
4.Loan Management:
 Process loan applications and manage loan repayments.
5.Customer Relationship Management:
 Track customer interactions and feedback.
 Data Management
6.Database Integration:
 Use JDBC (Java Database Connectivity) to connect to a relational database
(e.g., MySQL).
 Store and retrieve customer data, transactions, and account details securely.
7.Security Features

 Authentication: Implement user login with password encryption.

 Authorization: Different access levels for customers and bank staff.
 Compliance: Ensure data handling follows KYC and AML regulations.
8.Real-Time Data Access

 Use multi-threading to allow concurrent access to banking services.

 Provide real-time updates on account balances and transaction statuses.
9.Risk Management Tools

 Implement alerts for suspicious transactions.

 Monitor account activities for potential fraud.
10.Data Analytics

 Use simple algorithms to analyze transaction data for customer behavior

insights.
 Provide reports for decision-making.
 Development Process
 Environment Setup: Java Development Kit (JDK), AWT libraries, and a
database (e.g., MySQL).
 Coding: Implement the core features using Java, with AWT for the user
interface.
 Testing: Conduct unit and integration tests to ensure functionality and
security.
 4.2 Results

 Technology Stack: Java, AWT (Abstract Window Toolkit)

 Purpose: To centralize and automate banking operations for improved
efficiency, accuracy, and security.
Key Features
1.Customer Account Management:

 Create, view, update, and delete customer accounts.

 Manage account types (savings, checking, loans).
2.Transaction Processing:

 Facilitate deposits, withdrawals, and fund transfers.

 Generate transaction history reports.
3.Loan and Mortgage Administration:

 Apply for loans and track application status.

 Calculate loan eligibility and interest rates.
4.Customer Relationship Management (CRM):

 Store and manage customer information.

 Provide personalized services based on customer data.
5.Real-Time Data Access:

 Enable real-time tracking of financial activities.

 Enhance internal reporting and decision-making processes.
6.Risk Management Tools:

 Monitor market, credit, and operational risks.

  Provide alerts and analytics for financial threats.
7.Customer-Facing Services:

 Integration with internet and mobile banking platforms.

 Enhance customer experience through remote access.
8.Data Analytics:

 Analyze customer behavior and preferences.

 Tailor products and services for increased satisfaction.
9.User Interface:
 Built with AWT: Utilizes Java AWT for a user-friendly graphical interface.
 Navigation: Easy-to-navigate menus for accessing various functionalities.
5. Conclusion and Future scope
Conclusion

This project is developed to nurture the needs of a user in a banking sector by

embedding all the tasks of transactions taking place in a bank. Future version of
this project will still be much enhanced than the current version. Writing and
depositing checks are perhaps the most fundamental ways to move money in and
out of a checking account, but advancements in technology have added ATM and
debit card transactions. All banks have rules about how long it takes to access
your deposits, how many debit card transactions you're allowed in a day, and
how much cash you can withdraw from an ATM. Access to the balance in your
checking account can also be limited by businesses that place holds on your
funds.

Banks are providing internet banking services also so that the customers can be
attracted. By asking the bank employs we came to know that maximum numbers
of internet bank account holders are youth and business man. Online banking is
an innovative tool that is fast becoming a necessity. It is a successful strategic
weapon for banks to remain profitable in a volatile and competitive marketplace
of today. If proper training should be given to customer by the bank employs to
open an account will be beneficial secondly the website should be made
friendlier from where the customers can directly make and access their accounts.
Thus, the Bank Management System it is developed and executed successfully.

Future Scope:
The “Banking Online System is a big and ambitious project. I am thankful for
being provided this great opportunity to work on it. As already mentioned, this
project has gone through extensive research work. On the basis of the research
work, we have successfully designed and implemented banking online System.
To know what the future of online banking looks like, it’s probably worth
looking at the present – online banking isn’t new. When you think of online
banking, you probably think about a computer (either a desktop or laptop), a
three or four step security process and then an interface that lets you view the
balance of your various bank accounts and credit cards, whilst permitting you to
transfer money and pay bills. And you’re not wrong either. The most valuable
future looks are following below:
1- More branches of the bank, maybe it will be international, that means more
ATM machines outside.
2- Customer issues development based on their needs, so the help desk will be
aware of their needs and easy to use.
3- Developing a mobile App for banking system that help users to do the
obtained his operations without go to the bank only he needs to sign in using his
A/C NO. And password and then use your own PIN. Finally the system will
update automatically.

References
1. Code for Interview YouTube Channel
(https://www.youtube.com/playlist?list=PL5BFcXE899zxVrWaO3Ul6ly2SVJM
nJFOr)

2. Online Bank Account Management System

Website: http://www.slideshare.net (Collect some info for report documents)

3. Learning MYSQL, JavaScript, jQuery, PHP, HTML, CSS3,

Website: http://www.w3schools.com

4. PHP and MySQL video tutorials

Website: http://www.freehinditutorial.com, http://www.youtube.com