16 Mar 2023
  

Online Banking Management System – Its Scope and the Technology Used

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Surbhi Bhatia

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bank management system

The banking system allows banks to keep track of a few records. Therefore, a bank management software program is needed to simplify the process. For example, maintaining currency and international values is part of the job.  Online Bank management systems must also act as currency distributors and serve the nation’s welfare. 

An application’s primary purpose is to automate the records of the system. It provides all the functions the bank needs to maintain a stable system. It also allows you to check the transactions from the past and the records of the existing system. The application can also modify or manipulate the added data, which is re-recorded. This application is not only helpful for customers but also for admin.

Also ReadCollaborate and Build Solutions for the Bank and Fintech Industry!

SCOPE:

  • Customers can create new accounts using the application. The customers can choose between a Savings Account or Current Account. This application saves customers the hassle of visiting the bank to create or use these accounts.
  • Depositing Money – With the global shift towards paper currency being less common, it will be as simple as clicking a few buttons on this app to deposit or transfer money between banks.
  • Withdrawing Money – You can also send requests through the application for money transfers.
  • Administrators can view the Account Holder List. Administrators can see the complete list of account holders.
  • Balance Enquiry – This application allows customers to check their balance.
  • Change Passwords/PIN – Customers can easily change their passwords and PINs using the application.
  • Closing– Customers can also close their accounts using this application.

TECHNOLOGY USED:

  • JAVA- Java programming language is straightforward to use but extremely powerful. It was created by sun micro-systems back in 1991. It can be used on any platform.
  • SWING- Swing can be described as a widget GUI toolkit used for Java. Swing was designed to offer a more advanced and sophisticated approach to a limited set of GUI components than the earlier AWT (earlier abstract windows toolkit). Swing provides users with more advanced features like tabbed panels, scroll panes, and trees.
  • MY SQL– MySQL, a well-known open-source relational SQL system, is also a database management software. It’s a relational online bank account management system that can be used to develop various web projects.
  • MULTI-THREADING – This allows us to break down a program into smaller parts. Each one can be classified as a thread. If a lightweight process acts as a virtual CPU, it will execute your code and other system calls. These lightweight processes are not necessary to run programs with a few threads. Each thread can perform independently, and multiple lines can be run simultaneously.

Online Banking Statistics

  • Average bank users in the US have 5.3 bank accounts.

Because of the many benefits, people tend to have more than one bank account. The average client has more than five accounts in all types of financial institutions, according to statistics from 2019.

49% of people open an account at a bank because they feel comfortable there. In addition, 26% have an existing card from the institution, and 14% keep their investment.

  • Online banking will be used by 64.6% of US citizens in 2021

According to online banking statistics, more Americans are turning to digital banking.

In 2018, 61% of digital banking users used it, but that number rose to 63.8% in 2020. According to estimates, this share will increase to 65.3% by 2024.

  • In the first half of 2020, digital payments grew by 21%.

Digital payments saw a significant increase in volume in 2020, according to online banking statistics. The digital banking transaction volume also increased by 10%.

  • In 2020, the global market for wearable payment devices was valued at $10.35 billion.

Wearable tech pieces can also be used to make payments. As a result, these devices were a major trend in mobile banking.

Experts forecast that the wearable payment technology market will grow at a compound annual rate of 29.8% between 2021-2028, according to experts.

  • In 2020, 625,364 computer users were targeted by banking Trojans.

This decreased attack victims from the 773-943 users who were attacked in 2019. Statistics and facts about online banking show that in 2020, the most common victims of financial malware were from Russia, Germany, and Kazakhstan.

Zbot, the most prevalent banking malware, was particularly harmful to around 22%. CliptoShuffler also attacked approximately 15% of users, while Emotet impacted about 14%.

Bank Industry Trends to Watch in 2023

This is one of the newest trends in banking technology and it will continue to grow. Brick-and-mortar banks were forced to reduce their hours of operation or temporarily close branches to recover from the pandemic.

Banks and clients will both save time and money by using this method. The competition is already expanding.

Also Read – Introduction to Super Apps in Banking: A Massive Revolution!

This approach allows for uncompromised flexibility and is even more critical for clients. Digital-only banks offer lower rates because there is no need for a branch in a brick-and-mortar location. This is a severe threat to traditional banks.

  • White Label eWallet

The pandemic has inspired users to explore digital wallets to make payments. It’s a contactless mobile banking option that allows you to complete the transaction from almost any iOS or Android device.

It also offers businesses a customized customer experience without costly and time-consuming development.

According to Market Research, approximately 4 billion people will use digital wallets to pay their bills by 2024. This indicates that digital banking trends are necessary for institutions that want to stand out.

  • Self-Service Applications

Self-service apps are among the most crucial online banking technology trends, especially in millennial banking. They allow customers to manage their wealth and make financial transactions, such as withdrawals or deposits, inquiries, transfer payments, bill payments, loans, currency change, and other matters, directly from their app profile.

Various businesses in the banking sector can optimize, automate, and improve client engagement.

Clients no longer need to be present in person to make any bank transaction. Instead, all these transactions are included in the client’s banking app.

  • Cross-Platform Services

Transactions are also involved in healthcare, retail banking, insurance, hospitality, and other industries. This is why integrating cross-platform payment options, such as mobile payments and hybrid wallets, can dramatically increase the income of businesses and financial institutions they work with.

 Businesses and entrepreneurs can quickly complete transactions using embedded payment services within the app without compromising application security.

This digital banking trend is also much simpler and quicker to launch and maintain than native apps and between 15% and 50% cheaper!

  • Implementation of API

API, or Application Programming Interface, is used in banking to allow synchronization, linking, and connection of any service database with any other application. It acts as a bridge to ensure the safe transmission of personal data without involving any third parties.

The API trend in private and commercial banking also makes these financial institutions more transparent, secure, and accessible to their clients. This is undoubtedly a huge benefit for both businesses and financial institutions.

  • Video Banking

Video banking technology is another emerging trend in banking. This technology allows clients to optimize their remote services and improve their workflow. In addition, this approach will enable customers to be more engaged with their financial institutions and provides for online processing of various in-person procedures.

This is a banking trend that has particular benefits for consumer and investment banking. 

Video banking optimizes various banking processes to provide smooth and efficient client service. Automating and optimizing workflows can help financial institutions reduce the time and cost of processing client requests.

  • Open Banking is a great way to increase your business.

This increased interest in online and mobile banking has led to Open Banking, a new type of financial innovation.

This technology allows clients to consolidate and access financial data from multiple organizations and institutions through an open API. It will provide a seamless and flawless experience.

This technology will enable Open Finance, which allows third-party providers to access clients’ financial information after they consent.

  • Contactless Payment Methods – Cash or Other than Cash

The latest crisis has drastically changed people’s lives. People increasingly turn to online transactions and digital payments because they feel less connected in real life.

Many countries are planning to eliminate cash and switch to digital transactions completely. This will reduce costs associated with handling hard money by transforming banks into a cashless society.

Banks will find it easier to analyze digital transactions and gain an overview of client spending patterns.

  • Shift to Composable Architecture

Many banks will likely switch to composable architecture to better respond to future crises and challenges.

It is possible to transition step-by-step. This flexible and scalable solution will allow financial institutions to optimize their internal processes.

A broad investment in the transition towards composable architecture will be a bank trend for the following year.

  • Robotic Process Automation for Greater Efficiency

Robotic Process Automation, or simply RPA, is another trend in banking that institutions are keen to embrace for greater productivity and efficiency.

This can help to save money and replace or assist employees with many tasks that minimize errors, maximize accuracy, and improve the client experience.

This fantastic solution will soon revolutionize the online bank management system  and be available to all mobile app development company of any size.

  • Cybersecurity is the focus.

FinTech app development Company will pay more attention to cybersecurity because most financial transactions are online. This will ensure that the client’s financial information is protected and secure.

These data are easy targets for hackers. Therefore, cybersecurity must be a top priority in all industries to avoid reputation damage and financial loss.

Digital Banking Features You Need to Know About

These are the best features of digital banking, which have made it more popular than traditional banking.

  • Online banking

Online bank management system allows customers to access all banking services anytime and anywhere. In addition, many banks offer a variety of technological solutions that make banking easy.These banking features can be accessed online.

Transfer of funds

  • UPI

The National Payments Corporation of India has developed the Unified Payments Interface for real-time inter-banking transactions. With just a few clicks, you can perform fund transfers quickly by integrating UPI and digital bank services.

  • Personal financing options

Many Indian banks offer next-generation banking services that allow customers to access many online tools. For example, you can manage your investments, credit, savings, and other financial matters with the eligibility calculator, EMI calculator, and FD calculator.

  • Loyalty programs

Today, individuals can participate in loyalty and rewards programs many banks offer. For example, reward points can be earned based on bank or partner transactions. These points can be redeemed later and receive attractive rewards like cash back or discounts.

  • Digital wallet

In the last few years, digital wallets have been trendy. People don’t have to keep cash around as they can make necessary transactions on their smartphones.

  • Mobile banking

Financial institutions now offer mobile banking services that allow customers to access all their banking functions from the convenience of their homes. Users must download the appropriate apps and log in using their credentials to log in.

  • Phone banking without the internet

For those who do not have an internet connection, banking facilities are available. This allows you to access banking services via SMS, phone calls, or USSD. This feature will enable individuals to access banking services without any fees, even in remote areas.

  • Message alerts

Secure message alerts are one of the most critical aspects of digital banking. Instant alerts via SMS can be sent to individuals whenever there is any activity in their bank account. In addition, these alerts can be used to prevent fraudulent transactions.

  • Remote advisor

Customers can now have a seamless banking experience with remote banking. Thanks to the services of dedicated digital relationship managers. These executives can take care of your banking needs beyond regular banking hours.

  • Automated payment of bills

Automatic bill payment facilities make it easy to pay your bills. Customers can now link their monthly bills to their bank accounts through banks. In addition, one can receive timely reminders from banks about bill payments.

How to choose the right tech stack for your bank app?

There is no one-size fits all solution.A tech stack is a collection of tools (programming languages and frameworks, libraries, etc.). A tech stack is a set of tools to create a software product.

Based on industry requirements, different projects will require other tech stacks. So let’s look at some of the critical factors that influence the choice of the technology stack for a bank app.

  • The complexity of the project

No one is surprised that more features in your banking app will require more technology. Integrations with other platforms can complicate the project. You must do it with more than just a few technologies. Developers need to determine the scope of work and a list of product features required to do it right. A well-chosen tech stack will only be possible if you have clearly defined project requirements.

  • Rapid development

A fintech app’s development speed will impact not only the time it takes to get your product to market but also its cost. The process will take longer, which is obvious. Consider technologies that offer ready-made solutions to speed up the development process if you are working under tight deadlines. For example, your development team may use Kotlin instead of Java to build an Android app. You can also create an MVP version of your product that includes core functionality and add additional features later. You can do what you want. Your business goals will influence your choice of the cost to build a mobile app.

  • Budget

When choosing technology, it is essential to consider the budget required for product development. This could be a mobile banking app, web-based neo bank, or full-fledged neobank. Many libraries and frameworks can be used to implement the desired functionality. You only need to decide whether you are willing and able to spend money on paid tools that offer greater flexibility or security. An experienced development team will work with you to determine the right mix of open-source and commercial technologies to meet your needs.

  • Security

Security is a crucial consideration when developing fintech apps. Mobile apps have many security options but choosing the one that best suits your product is essential. Secure frameworks and libraries are among the best ways to protect the system. In addition, you should select a technology stack that improves the product’s reliability. Finally, avoid technologies that are susceptible to fraud or other threats. Advanced technologies like AI or Blockchain can provide a significant advantage by providing high levels of security for data storage and execution.

  • Integration

Integrations are a critical factor in choosing the  cost to build a FinTech app. Developers must make sure that all platforms can be integrated with third-party APIs. A technology stack audit is performed to identify all possible platform connectivity options. Make sure you tell your developers what integrations are required for your app so technical specialists can consider this when creating product architectures and choosing technologies.

  • Product architecture

Software products are made up of many components. The development team determines how these components will interact during the building of an app architecture. An example of a microservice architecture is an application that includes several related services. Each service can be created using the best technologies for it. You may, however, find a different architecture that suits your needs. It all depends on your project’s requirements and the required functions. Your project’s architecture will determine the technology pool available to you.

You can make your app more reliable and secure and perform better.

Conclusion

The situation regarding coronavirus spreading is still uncertain. However, the crisis continues. Companies may still face new challenges, opportunities, and discoveries. It’s essential to monitor the market and monitor the situation. Customers’ behavior is critical to adapting quickly to changing circumstances.

Get in touch with Techugo,  an on demand app development company to discuss possible opportunities that can help you implement innovations to take your operations to the next level and keep up to date with the banking tech trends.

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