1.1 Background of the study
Since the launch of Internet the large planet has become a smaller one. It has rendered enormous impacts on business sectors. Remarkable development in ICT (Information and Communication Technology) has introduced a global revolution in banking sectors. The global trend in business arena set some challenges that cannot be fulfilled with the help of the traditional banking system. The survey of current banking system in Bangladesh reveals the fact that it requires rapid modification and adaptation to keep harmony with the world economy business. It become more obvious by observing the increased number of customers in some modern banks while others are losing them. In the context of Bangladesh, a country of more than 140 million people, it is to be realized that there is no other option for us than to join the current trend. Otherwise it is almost impossible to bring any sort of fruitful achievement for the country. At present, people are very often scared of doing any banking function with most of the bank of Bangladesh. For, they still follow the traditional paper-based system. It, then, becomes cumbersome to perform even a simple financial service such as account checking. Therefore, the existing banking system in our country is awkward, slow and error-prone. It, in one hand, fails to meet the customers’ demand and, on the other hand, it causes some significant losses both for the banking authority and traders. Electronic banking, on the other hand, solves the above problems. Furthermore, it opens up some other salient aspects such as increased foreign trade and foreign investment.
1.2 General problem statement
Establishing Online banking infrastructure has been a challenging task for the developing countries like Bangladesh. At present, there is no infrastructure for performing Electronic-banking activities in Bangladesh. So in this project paper, I propose a solution that can be effectively used to establish Online Banking activities in Bangladesh.
1.3 Objective and scope of the work
The primary objective of the project paper is to find out a feasible solution for the banking system of Bangladesh using a nation-wide network. Implementing a nation-wide Electronic banking system requires huge investment especially for the establishment of a backbone network. It really matters for a country like ours. But fortunately i need not go for establishing the backbone network; instead the high-speed optical fiber network previously owned by Bangladesh Railway can be leased partially to meet the requirement. This work also finds some comparison study with the existing system and finally focuses on few what-if analyses. The comparison study has been founded upon some important financial services such as fund remote transferring, letter of credit (L/C), assuring foreign exchange rate etc. It mainly finds the economic benefits. The what-if analyses have been formed using some internal matrices for performance evolution as such bandwidth utilization of the proposed network.
Review of literature
2.1 Organization of the term paper
Entire work has been constructed within a number of chapters. The chapters are organized in a systemic order to get a meaningful concept. Chapter 1 starts with brief description of current banking system of Bangladesh. It also includes objective and scope of the term paper; research methodology used to serve this purpose and finally includes related research on the Online Banking side. Chapter 2 discusses the current banking security system of Bangladesh. It mainly deals with the security principles, how money and other valuable assets are kept secured in traditional system and finally deals with the security of the software that are used to maintain banking functions. Chapter 3 discusses some core functions offered by banks. It covers banking functions, source of income of a bank. Throughout this discussion some banking...