1. Summary
  2. DBMS in banking
  3. Way the data stored in DBMS


Database management systems are specifically designed for the storage and retrieval of (large amounts of) information. Banks handle massive amounts of information. A DBMS allows them to store that information, care for it, and retrieve it once required, quickly enough for their or her and their customer’s desires. The four properties that each RDBMS ought to have is delineated below

DBMS in banking

  • Atomicity: Once multiple changes are declared a part of one group action, then all of them can fail or all can succeed; ne’er a locality. thus if I transfer cash to you and also the laptop fails once debiting my account however before crediting yours, then the RDBMS can make sure that, once the server is restarted, either the remainder of the group action completes or (usually) the half that was already done is undone. In different words, it will ne’er happen that cash “disappears” as a result of my account being debited however yours isn’t attributable.
  • Consistency: Bound business rules are declared at intervals of the information so the RDBMS ensures that these can ne’er be desecrated. Things like not having the ability to enter a transfer order from an account variety that doesn’t exist, or not having the ability to enter a transfer order with a negative quantity.
  • Isolation: For every user, it seems as if they’re the only real user of the database; in different words, you may ne’er “see” unfinished work from different users. once one clerk processes a transfer of $100,000 from your bank account to your bank account and another clerk appearance at your price, he will either see the fact because it was before the transfer started (a lot of cash within the bank account, no cash within the savings account) or once (empty bank account, saving account at $100,000); however ne’er the “halfway completed” version wherever the money is in transfer and you seem to possess suddenly lost your credit rating. (The clerk handling the transfer would possibly see that intermediate state as a result of that’s a part of HIS transaction).
  • Durability: No matter what happens to the pc, once a group action is reportable as complete the RDBMS ensures that the changes are permanent. thus if somebody transfers cash from another bank to your account and your bank includes a power failure simply once this happens, then either it happens before the opposite bank gets acknowledgment (and they’ll recognize to attend a short time so retry), or the opposite bank gets confirmation and also the RDBMS guarantees that the credit to your account isn’t lost. While not the “D” of ACID, there are some situations wherever the facility will wander off once the amendment is in memory and not however written to a magnetic disk or different permanent storage, and you’d lose your cash.

Way the data stored in DBMS

Here are some necessary ones to consider:

  • First, what quite a bank is it? There are completely different classifications of banks and they should vary from one country to a different. whereas there are plenty of well-known banks out there that are in all probability outsourcing their information systems, there are also plenty of smaller banks that have systems that are designed from scratch by their own IT team. Now, why is that this important? Storing information that doesn’t seem to be very massive in size in an exceedingly very complicated and large system won’t be economical – which means there’ll be reserve prices. On the opposite hand, if the bank can handle plenty of information employing a system that can’t accommodate massive data, then the bank can get another system – that additional} results in more reserve prices.
  • Second, what is the merchandise of the bank? Initially, banks seem like they’re all equivalent however really, banks have plenty of variations in terms of merchandise offered. Some banks solely provide basic loans and savings accounts whereas different banks provide merchandise like time-deposit and a lot of specific forms of loans like auto loans, real estate loans, etcetera. Again, why is that this important? As a result the type of information system can go with the bank’s desires. Roadblocks like limitations in columns and different easy things could also be a gift in numerous systems. Hence, it’s necessary to grasp wherever the bank is presently in and wherever it’s headed so as for the system to suit currently and within the future.
  • Third, who is going to be exploiting the data? Whereas this could sound obvious, it merely can’t be left unvoiced. One of all the primary things to think about once it involves creating databases is the user. You’ve got to raise yourself: who can use the information which will be stored? If the users are going to be filled with IT individuals and DBAs, then you’ll argue that the system ought not to be that friendly once it involves the program. However, if most of the users are going to be employed by the business those who don’t have technical backgrounds, then the system’s interface needs to be easy.