In the digital era, the layout of a Online Banking System is a critical element of any commercial enterprise, it not only affects user experience but also the growth of a service-providing company. This article explores the comprehensive guide to designing a Online Banking System for its efficient use. From practical and non-useful requirements to low-level and High-level design, we’ll delve into each aspect with a focus on readability and effectiveness.
Table of Content
User Registration
Payment Processing
Transaction History
User Authentication and Authorization
Response Time
System Availability
Data Encryption Standards
Regulatory Compliance
A use case diagram visually represents the system’s functionality through actors (users, administrators) and their interactions with the system. It showcases various use cases consisting of account creation, payment initiation, and also access to the transaction history.
In the above diagram:
You can estimate the system capacity by analyzing certain data like traffic, number of transaction are executing , number of new user joining platform etc. By analyzing whole data we can further calculate the required storage capacity for whole year. Here is the simplified calculation given:
Traffic is 100million per month
Traffic per second = 100,000,000/30*24*60*60
= 38.50
Assumption: 30% of the traffic are new user registrations.
40% are using payment process.TPS = 30+40 =70
Storage per second(100 KB/transaction)= 70*100 = 7000 KB/S = 7 MB/S
Storage required per year = 7*60*60*24*365 = 221 TB
Low-level design involves specification of various components and their involvement in System Design of Online Banking System. It includes:
In the Low-Level Design (LLD), the Payment Gateway is established with a complete class hierarchy to facilitate the intricacies of payment processing. The magnificence includes techniques tailor-made for various components together with fee initiation, refund handling, and seamless integration with external payment processors. These strategies encapsulate middle transactional operations, dealing with validation, processing, and exceptions.
Within the Low-Level Design, the Authentication Service is delineated via a based magnificence hierarchy that manages user authentication techniques. This class encapsulates the logics for verifying person credentials and conducting authorization exams to envision get access permissions. The internal methods deal with the authentication process, validating user credentials towards saved data, and executing authorization check to decide consumer access to ranges.
The Transaction Processing Service’s magnificence structure is cautiously crafted to manage methods for processing transactions and updating user account balances. This class performs a pivotal function in making sure the consistency and integrity of financial records. Internal techniques are designed for efficient transaction validation, processing, and updating of user account balances.
In the Low-Level Design’s database interplay segment, pattern SQL queries are meticulously crafted for crucial operations together with retrieving person statistics and updating transaction repute. These queries are optimized for performance and cling to best practices in database interactions.
High-level design mainly focus on the overall architecture of the Online Banking System, defining the interaction among its major components. It includes
The Online Banking System includes essential additives consisting of the User Interface, Payment Gateway, Database, Authentication Service, Notification Service, Transaction Processing Service, Fraud Detection Service, and Logging and Monitoring Service. Communication is secured thru HTTPS, and interaction amongst components is facilitated by means of way of RESTful APIs. Real-time updates are enabled thru Websockets.
The system is designed for scalability, using horizontal scaling to make certain excessive availability and deal with improved masses. Security measures encompass HTTPS for constant data transmission, encryption for sensitive statistics like credit card statistics, and tokenization for more desirable protection. Availability is maintained through load balancing for visitors distribution and redundancy mechanisms for immoderate availability.
The payment process starts with a user-initiated pay request dispatched from the User Interface to the Payment Gateway. The Payment Gateway validates the request and forwards it to the Authentication Service, which verifies consumer credentials and performs important authorizations. Valid transactions proceed to the Transaction Processing Service, interacting with the Database to replace user account balances.
In the High-Level Design (HLD), an quintessential issue is the incorporation of a sturdy transaction logging and auditing device. This system ensures that each one essential activity inside the Online Banking System are recorded for later analysis, auditing, and debugging. The Logging and Monitoring Service performs a relevant position in to capturing and storing unique logs of transactions, user interactions, and system activities.
For Online Banking System, the database design will rely upon the particular requirements and features you need to enforce. Below is detailed description for database design of Online Banking System.
User table store user data. It includes fields like:
user_id: Unique identifier for every user.
Username: User's username for public display.
Email_address: User's e mail for communication.
Password: Securely hashed user password.
Full_name: User's complete name.
Created_date: Registration date of the user.
Payment method table store information all regarding payment modes. It include fields like:
Payment_method_id: Unique identifier for every payment method id.
User_id: Foreign key linking to the User table.
Payment_type: Type of payment method (credit card, PayPal, etc.).
Card_number: Credit card number or account detail of user.
Expiration_date: Expiration date of the payment method used by user.
Is_default: Flag indicating if this is the user's default payment method.
Transactional table store data transaction detail like when he executed payment, trasaction_id, mode of payment etc. It include field like:
Transaction_id: Unique identifier for each transaction.
User_id: Foreign key linking to the User table.
Payment_method_id: Foreign key linking to the Payment Method table.
Amount: It store the amount of the transaction is executed by user.
Currency: The currency used in the transaction.
Status: The status of the transaction (pending, finished, failed, and many others.).
Timestamp: Date and time of the transaction.
Invoice table consist of all the invoice details. It includes fields like:
Invoice_id: It is Unique identifier means it uniquely identifies every invoice.
User_id: Foreign key linking to the User table.
Transaction_id: Foreign key linking to the Transaction table.
Invoice_number: It is unique number associated with every bill.
Due_date: Due date for the invoice.
Amount_due: The general amount due at the invoice.
Status: The status of the bill (unpaid, paid, late, and many others.).
Subscription table consist of information of subscription detail of user. It include field like:
Subscription_id: Unique identifier for each subscription.
User_id: Foreign key linking to the User table.
Plan_name: Name of the subscription plan.
Amount: The price of the subscription.
Billing_cycle: The billing cycle of the subscription (month-to-month, every year, and so forth.).
Start_date: Start date of the subscription.
End_date: End date of the subscription.
Refund table include detail of refund transactions. It include fields like:
refund_id: It is unique identifier for every refund.
Transaction_id: Foreign key linking to the Transaction table.
User_id: Foreign key linking to the User table.
Refund_amount: It provide data of how much amount is refunded.
Reason: Reason for the refund.
Status: The status of the refund (processed, pending, denied, and many others.)..
Microservices structure is an approach to software development wherein a large utility is decomposed into small, independently deployable services. Each microservice is accountable for a selected business functionality and communicates with different microservices through nicely-described APIs. In a payment device, microservices may additionally consist of:
APIs are interfaces that allow one-of-a-kind software program components to communicate with every different components. In a Online Banking System it also permits various APIs facilitate seamless integration between microservices, external services, and the user interface. Some additives of API are as comply with:
Request:
"username": "example_user",
"email": "user@example.com",
"password": "securepassword123"
>Response:
"status": "success",
"message": "User registration successful"
>Request :
"user_id": "12345",
"amount": 50.00,
"payment_method": "credit_card",
"card_number": "**** **** **** 1234",
"expiration_date": "MM/YYYY"
>Response:
"status": "success",
"message": "Payment processed successfully"
>Request :
GET /api/transaction/history?user_id=12345
Host: your-payment-system-api.com
Accept: application/json
Response:
< "transactions": [
< "transaction_id": "abc123",
"amount": 30.00,
"status": "finished",
"timestamp": "2023-11-29T12:30:45Z">, ]
>
Requests:
"transaction_id": "abc123"
"new_status": "finished"
>Response:
"status": "success",
"message": "Transaction status updated"
>Scalability is important for handling multiple users and transaction volumes. Scalability include:
Horizontal scaling includes including more servers or times to distribute the workload efficiently. In Online Banking System, this indicates increasing the number of servers to address a higher range of concurrent clients and transactions. By horizontally scaling, the device can preserve responsiveness throughout height intervals with out experiencing standard overall performance bottlenecks.
Implementing load balancing mechanisms is essential for various incoming requests gently during more than one servers. This guarantees that no single server is overload with traffic, optimizing useful resource usage and preventing a single point of failure. Load balancing is a crucial strategy for boosting tool reliability and responsiveness.
Containerization technologies, together with Docker, contribute to scalability with the useful resource of encapsulating utility components into packing containers. Containers offer consistency throughout exclusive environments, simplifying deployment and permitting efficient scaling. With containerization, the Online Banking Systemincome agility and the ability to scale specific additives independently.
Microservices make a contribution appreciably to scalability by way of allowing individual components to scale independently. Each microservice manages a specific commercial enterprise capability, and as demand increase for that specific characteristic, the corresponding microservice can be scaled independently without affecting the entire system. This modularity complements flexibility and responsiveness.
Database sharding involves horizontally partitioning information across a couple of database servers. This technique is in particular applicable for managing large datasets in Online Banking System. By dispensing the data across more than one servers, the system can effectively control and retrieve statistics, contributing to stepped forward usual performance and scalability.
In conclusion, a well-designed Online Banking System can fulfill financial aspects of the organization. By using modular architecture, maintaining efficient database design, and providing clear communication through APIs can lead to foundation for successful digital payment ecosystem. It must be concluded here that you can System Design Online Banking System by considering all the discussed points in the article.
