ELECTRONIC FUND TRANSFER (E-MONEY)

( A CASE STUDY OF UNITED BANK FOR AFRICA)

DEPARTMENT OF COMPUTER SCIENCE

BY

MARY ASOGWA
(S/COM/12/4506)

ABSTRACT
Electronic Fund transfer (e-money) is a digital equivalent of cash transaction. It is defined
as an electronic store of monetary value on an electronic device or remotely on a server.
E-money can be used for making payments without necessarily involving bank accounts
in the transactions. The main reason for this project work was to puffer solution to the rick
that was involved in the transfer of fund physically within and outside the banking system,
which involves theft by hoodlums who go about attacking business men and women who
probably is embarking on a business transaction by carrying large sum of money about.
Secondly, another problem that prompted this project work is the problem of carrying
huge amount of money from one place to another. In the cause of preventing these
problems, an electronic fund transfer system was decided upon to be developed after
carrying out an analysis on the old system. The objective of this new system is to
enhance the speed at which money is being transferred, reduce theft, and reduce the
carrying of large sum of money by easily transferring fund from one account to another
using united bank of Africa as a case study.

CHAPTER ONE
1.0

INTRODUCTION

1.1

BACKGROUND OF THE STUDY

Electronic Fund transfer (e-money) is a digital equivalent of cash. It is defined as
an electronic store of monetary value on an electronic device or remotely on a
server. E-money can be used for making payments without necessarily involving
bank accounts in the transactions. It always acts as a prepaid bearer instrument.
Since 2009, e-money services have been regulated by the E-Money Directive
(2009/110/EC).

The Electronic Fund transfer program involves the transfer of funds by means
other than a transaction originated by check, draft, or similar paper instrument. The
transactions are initiated by the taxpayer by electronic means. A financial institution
(bank) is then authorized to debit or credit an account. This process was
introduced so as to make transaction to be fast as possible rather than spending
time on the bulk room to pay in money into someones account for any transaction.

United bank for African is one of the leading banks in Nigeria that is involved in this
method of fund transfer, this is a safe, fast and reliable electronic funds transfer
method that enables people send and receive money instantly from 150,000 in
over 180 countries.
This money transfer is only exchanged electronically. Typically, this involves the
use of computer networks, the internet and digital stored value systems. Electronic

funds transfer (EFT), direct deposit, digital gold currency and virtual currency are
all examples of electronic money. Also, it is a collective term for financial
cryptography and technologies enabling it.

1.2

STATEMENT OF THE PROBLEM

Before the introduction of this system of transferring money called money transfer,
there were a lot of other system of transferring money from one location to another
either within a bank and another bank. This method was done directly by deposit of
the fund which takes hours or days for the money to be posted to the receivers
account. And most times the sender has to wait for long before the casher can
attend to him / her all in the name of transferring or sending money to another
person.

Most time, the sender has to withdraw money from his / her account before
sending the money to the receiver and because this money is carried by hand, it
can easily attract rubbers. Due to all these problems associated with the
conventional means of transferring money, it was now imperative to introduce a
new method of fund transfer to reduce the time wasted, risk and other factors
militating against easy and fast means of fund transfer.

1.3

OBJECTIVE OF THE STUDY

The sole objective of this new design of transferring fund is to ensure secured
transaction process which can be done anytime and anywhere using any device
that is connected with internet which can simply be refer to as inter switch.

Some of the main objective of this new system design is to ensure

Speed: The speed of the transaction is one of the most significant benefits to
money transfers. Unlike checks, which can take a week or more to be received and
processed, a money transfer can be initiated instantly and processed within a day
or two. The speed of the money transfer transaction makes it much easier to
manage your finances and pay your bills on time. This in turn can help you avoid
late charges and other fees that could result if your payments were sent the old
fashioned way.

Security: Sending a check in the mail can be risky. There is always the possibility
that the check will be lost or stolen as it makes its way from your mailbox to the
recipient. If the check is lost in the mail, you could face late fees while you try to
convince your creditors that you did in fact make your payment on time. If the
check is stolen, the thieves gain access to your routing number and account
number, and with that information they can potentially drain your bank account.
Using money transfers instead of checks prevents these problems and gives you
instant confirmation that your payment was made.

1.4

SIGNIFICANCE OF THE STUDY

The importance of this research work is that it will help to accelerate the method at
which funds can be transferred from one location to another during any
transaction, be it business or otherwise. This type of method is mostly common
among internet business or transactions were one has to buy an item online and at
the same time pay for the item or product at that same time even without receiving
the item or product.

1.5

SCOPE OF THE STUDY

The scope of this research work is limited to fund transfer system using UBA as a
case study. In respect to this transfer, the transfer is restricted to inter banking
system.

1.6

DEFINITION OF TERMS
MONEY: Is any object or record that is generally accepted as payment for goods
and services and repayment of debts in a given socio-economic context or country

FUND: Sum of money set aside and earmarked for a specified purpose.
TRANSFER: A changing of ownership, such as real estate, a security or a financial
account, from one party to another. A movement of funds from one account to
another.

AUTOMATED SYSTEM: Any system that does not require human intervention.

1.7

BRIEF HISTORY OF UBA

UBAs history dates back to 1949 when the British and French Bank Limited
(BFB) commenced business in Nigeria. Following Nigerias independence from
Britain, UBA was incorporated in 1961 to take over the business of BFB. Todays
United Bank for Africa Plc (UBA) is the product of the merger of Nigerias third and
fifth largest banks, namely the old UBA and the former Standard Trust Bank Plc,
and a subsequent acquisition of the erstwhile Continental Trust Bank Limited
(CTB).

UBA is a large financial services provider in Nigeria with subsidiaries in 20 subSaharan countries, with representative offices in France, the United Kingdom and
the United States of America. It offers universal banking services to more than 7
million customers across 750 branches. Formed by the merger of the commercially
focused UBA and the retail focused Standard Trust Bank in 2005, the Bank
purports to have a clear ambition to be the dominant and leading financial services
provider in Africa. Listed on the Nigerian Stock Exchange in 1970, UBA claims to
be rapidly evolving into a pan-African full service financial institution. [3] The Group
adopted the holding company model in July 2011.As of December 2011, the
valuation of UBA Group's total assets was approximately US$12.3 billion
(NGN:1.94 trillion), with shareholders' equity of about US$1.07 billion (NGN:170
billion).

CHAPTER TWO
2.0

LITERATURE REVIEW

2.1

INTRODUCTION
Electronic Funds Transfer (EFT) provides for electronic payments and collections.
Electronic Funds Transfer (EFT) is safe, secure, efficient, and less expensive than
paper check payments and collections. While it costs the U.S. government $1.03 to
issue each check payment, it costs only 10.5 cents to issue an EFT payment
Indicated below are types of Electronic Fund Transfers we are capable of handling,
some of which may not apply to your account.

An electronic funds transfer (EFT) is a transaction that takes place over a

computerized network, either among accounts at the same bank or to different
accounts at separate financial institutions.

EFTs include direct-debit transactions, wire transfers, direct deposits, ATM

withdrawals and online bill pay services. Transactions are processed through the
Automated Clearing House (ACH) network, the secure transfer system of the
Federal Reserve that connects all U.S. banks, credit unions and other financial
institutions.
For example, when you use your debit card to make a purchase at a store or
online, the transaction is processed using an EFT system. The transaction is very
similar to an ATM withdrawal, with near-instantaneous payment to the merchant
and deduction from your checking account. Direct deposit is another form of an

electronic funds transfer. In this case, funds from your employers bank account
are transferred electronically to your bank account, with no need for paper-based
payment systems. Electronic data interchange (EDI), or electronic data processing,
is the electronic transmission of data between computers in a standard, structured
format. Electronic funds transfer (EFT) is the term used for electronic data
interchanges that involve the transfer of funds between financial institutions.

EDI has allowed companies to process routine business transactions, such as

orders and invoices, more rapidly, accurately and efficiently than they could
through conventional methods of transmission. While EDI has been around for
decades, it wasn't until the late 1990s that this basic principle became a driving
force in the rollout of electronic commerce, corporate extranets linking suppliers
and customers, and related network-based technologies.

2.1.1 Historical background of EFT

EDI has been present in the United States in some form since the mid-1960s.
Businesses had been trying to resolve the difficulties intrinsic to paper-dependent
commercial transactions. These difficulties include transmission speed (because of
delays in entering the data onto paper and transporting the paper from sender to
receiver); accuracy (because the data had to be recreated with each paper entry);
and labor costs (labor-based methods of transmitting data are more expensive
than computer-based methods).

In 1968 a group of railroad companies concerned with the accuracy and speed of
intercompany transportation data transmissions formed an organization called the
Transportation Data Coordinating Committee (TDCC) to study the problem and
recommend solutions. Large companies such as General Motors and Kmart also
reviewed the problems, which arose when they used their intracompany
proprietary formats to send electronic data transmissions to outside parties.
Because each company had its own proprietary format, there was no common
standard among transmitting parties. A company doing business electronically with
three other companies would need three different formats, one for each company.

By the 1970s several industries had developed common EDI programs for their
companies within those industries, and a third-party network often administered
these systems. Some examples of these systems include ORDERNET, which was
developed for the pharmaceutical industry, and IVANS, which was developed for
the property and casualty insurance industry. While these systems were
standardized for each industry, they likewise could not communicate with other
industries' proprietary systems. By 1973 the TDCC began developing set of
standards for generic formats to handle this problem.

2.1.2 The EDI

EDI is quite different from other types of electronic communication. It is unlike a
facsimile transmission (fax), which is the transfer of completely unstructured data
through a digitized image. EDI also differs from other types of electronic

communications among computers, such as electronic mail, network file sharing,

or downloading information through a modem. In order to access electronic mail
messages, shared network files, or downloaded information, the format of the
computer applications of both the sender and the receiver must agree.

Since EDI uses a defined set of standards for transmitting business information,
these standards allow data to be interpreted correctly, independent of the platforms
used on the computers that transmit the data. When a sender transmits data, such
as a purchase order, the EDI translation software converts the proprietary format of
the sender's document processing software into a mutually recognized standard
format. When the receiver obtains the data, the EDI translation software
automatically converts the standard format into the receiver's proprietary document
processing format. Because of the speed and accuracy of an EDI, users find that
the system saves time and reduces costs over paper-based business transactions.

2.1.3 Modern EDI

By the 2005, major retailers relied heavily on EDI to exchange purchase orders,
invoices, and other information with their trading partners. In a June 2004 poll of 20
retailers, the majority said that they were either adding new trading partners or
increasing the number of EDI transactions. It is estimated that between 80 and 90
percent of business-to-business traffic is conducted through EDI, and this number
is growing 3 to 5 percent annually. Retail giants such as Wal-Mart Stores Inc., J.C.
Penney Co., Supervalu Inc., and Hallmark Cards Inc. have been regular users of

EDI. In fact, Wal-Mart has been one of the most influential companies driving new
technology trends.

Since 2003, many companies have turned to a new technology in which data is
transmitted over the Internet using the Applicability Statement 2 (AS2) protocol.
The AS2 rules describe how to send data securely and ensure that the messages
are received.

In September 2002, Wal-Mart asked its suppliers to switch from value-added

networks (VANs) to AS2. Other companies have followed suit. One company
claimed to have cut its costs by 70 percent after switching from a VAN to AS2.
However, others have decided not to make the switch because of the costs
involved.

Retailers are not the only businesses to take advantage of this technology. The
healthcare industry also uses EDI to exchange patient information between medical
providers and insurance companies. EDI is such a reliable means of transmitting data
that a growing number of third-party payers, including Medicare, Medicaid, and
commercial insurers, have started to require providers to submit claims electronically.

The Electronic Data Interchange rule was developed as part of the Health
Insurance Portability and Accountability Act (HIPAA) and required compliance by
October 16, 2003. This law requires all entities that transmit clinical data (including

claims, referrals, and eligibility verification) to use the same electronic data file
format. This can be accomplished by purchasing and maintaining a HIPAAcompliant practice management system (PMS) or by transmitting the data through
a clearinghouse. The PMS is not the most cost-effective option for smaller entities,
as it usually requires an administrator to maintain and upgrade the system as
necessary. With the clearinghouse option, the entity sends data to a clearinghouse.
The clearing-house then sends the data to the appropriate recipients in the
appropriate format.

2.2

OBJECTIVE OF THE PROPOSED SYSTEM

The sole objective of this new design of transferring fund is to ensure secured
transaction process which can be done anytime and anywhere using any device
that is connected with internet which can simply be refer to as inter switch.
Some of the main objective of this new system design is to ensure

Speed: The speed of the transaction is one of the most significant benefits to
money transfers. Unlike checks, which can take a week or more to be received and
processed, a money transfer can be initiated instantly and processed within a day
or two. The speed of the money transfer transaction makes it much easier to
manage your finances and pay your bills on time. This in turn can help you avoid
late charges and other fees that could result if your payments were sent the old
fashioned way.

Security: Sending a check in the mail can be risky. There is always the possibility
that the check will be lost or stolen as it makes its way from your mailbox to the
recipient. If the check is lost in the mail, you could face late fees while you try to
convince your creditors that you did in fact make your payment on time. If the
check is stolen, the thieves gain access to your routing number and account
number, and with that information they can potentially drain your bank account.
Using cash transfers instead of checks prevents these problems and gives you
instant confirmation that your payment was made.

2.3

JUSTIFICATION OF THE NEW SYSTEM

The new system is design in such a way that it is able to meet up and achieve its
set objective for United Bank of Africa to sanctify his customers. In the sense that,
it was able to overcome all the problems that was traceable to the old system of
operation. And in using the system it was found that the system was more reliable
that the old system.

2.2

Overview of Electronic Fund Transfer

An electronic funds transfer (EFT) is an EDI among financial institutions in which
money is transferred from one account to another. Some examples of EFTs include
electronic wire transfers; automatic teller machine (ATM) transactions; direct
deposit of payroll; business-to-business payments; and federal, state, and local tax
payments.

In general, EFT transactions are transferred through an automated clearing house (ACH)
operator. An ACH operator is a central clearing facility operated by a private organization
or a Federal Reserve bank on behalf of participating financial institutions, to or from which
financial institutions transmit or receive ACH transactions. The ACH network is a
nationwide system for interbank transfers of electronic funds. It serves a network of
regional Federal Reserve banks processing the distribution and settlement of electronic
credits and debits among financial institutions.
ACH transactions are stored in an ACH file, which is a simple ASCII-format file that
adheres to ACH specifications. A single ACH file holds multiple electronic transactions,
each of which carries either a credit or debit value. Typically, a payroll ACH file contains
many credit transactions to employees' checking or savings accounts, as well as a
balancing debit transaction to the employer's payroll account. An originating bank sends
electronic payment instructions to a receiving bank. In those instances, the electronic
transfers are processed in batches and settled within a few days.
The National Automated Clearing House Association (NACHA) oversees the ACH
network and is primarily responsible for establishing and maintaining its operating rules.
All financial institutions moving electronic funds through the ACH system are bound by the
NACHA Operating Rules, which cover everything from participant relationships and
responsibilities to implementation, compliance, and liabilities. While the NACHA rules are
specific and quite detailed, adhering to a strict set of rules is crucial to the smooth and
successful operation of the ACH system.
As the use of home computers becomes more and more a part of everyday life, the
popularity of online banking and online bill payments continues to grow. Many banks

allow their customers to access account information over the Internet and to transfer
funds between accounts. Many credit card companies and utility companies allow
customers to pay their bills online through EFTs. Online bill payments can save the
consumer time and money. The customer can pay a bill in a matter of minutes over the
Internet instead of spending money on postage to send a paper check and risking the
chance that the bill may arrive past the due date.
On October 28, 2004, the Check Clearing for the 21st Century Act, also known as Check
21, took effect. This federal law allows banks to transmit checks electronically and
substitute electronic images for original paper checks. Check 21 provides many
advantages for banks and financial institutions. By transmitting checks electronically,
banks can reduce the amount of time it takes to receive funds. This is because they no
longer have to wait for another bank to receive paper checks before they send the funds.
In addition to saving time, Check 21 saves banks millions of dollars in transportation and
storage costs.
While Check 21 has made the banks happy, it has made many consumers unhappy.
Many people write checks thinking that it will take at least two or three days for them to
clear, thus giving them time to deposit the appropriate funds to cover the check. However,
with Check 21 banks can clear checks within 24 hours of receiving them, cutting this
safety net by days in many cases. In addition, although banks can process checks and
debit the customer's accounts right away, they can still hold out-of-state checks for five
days or more.
Consumer groups complain that this law increases the chances of fraud, error, bounced
check fees, and inconvenience. There may be times when a bank cannot accept an

electronic check image. In that case, the other bank could create a substitute check that
has the same legal weight as the paper check. Having both the original check and a
substitute check around could result in both checks being cashed, either fraudulently or
by an honest mistake.

The Importance of EFT

The increased use of EFTs for online bill payments, purchases and pay processes is
leading to a paper-free banking system, where a large number of invoices and payments
take place over digital networks. EFT systems play a large role in this future, with fast,
secure transactions guaranteeing a seamless transfer of funds within institutions or
across

banking

networks.

EFT transactions, also known as an online transaction or PIN-debit transaction, also offer
an alternative to signature debit transactions, which take place through one of the major
credit card processing systems, such as Visa, MasterCard or Discover, and can cost as
much as 3% of the total purchase price. EFT processing, on the other hand, only charges
an average of 1% for debit card transactions.

Electronic Fund Transfers Initiated By Third Parties. You may authorize a third
party to initiate electronic fund transfers between your account and the third party's
account. These transfers to make or receive payment may be one-time occurrences or
may recur as directed by you. These transfers may use the Automated Clearing House
(ACH) or other payments network. Your authorization to the third party to make these

transfers can occur in a number of ways. For example, your authorization to convert a
check or draft to an electronic fund transfer or to electronically pay a returned check or
draft charge can occur when a merchant provides you with notice and you go forward with
the transaction (typically, at the point of purchase, a merchant will post a sign and print
the notice on a receipt). In all cases, these third party transfers will require you to provide
the third party with your account number and credit union information. This information
can be found on your check or draft as well as on a deposit or withdrawal slip. Thus, you
should only provide your credit union and account information (whether over the phone,
the Internet, or via some other method) to trusted third parties whom you have authorized
to initiate these electronic fund transfers. Examples of these transfers include, but are not
limited to:
I.

Preauthorized credits. You may make arrangements for certain direct deposits to
be accepted into your checking, share savings, or money market account(s).

II.

Preauthorized payments. You may make arrangements to pay certain recurring

bills from your checking or share savings account(s).

III.

Electronic check or draft conversion. You may authorize a merchant or other

payee to make a one-time electronic payment from your checking or share draft
account using information from your check or draft to pay for purchases or pay
bills.

IV.

Electronic returned check or draft charge. You may authorize a merchant or

other payee to initiate an electronic funds transfer to collect a charge in the event a
check or draft is returned for insufficient funds.

Electronic funds transfer system (EFTS) generally, the use of computers in

effecting payments between individuals and/or organizations. In some cases the term is
used to refer to advanced future systems in which debits and credits are made
simultaneously with the transactions that give rise to them. In other cases its use covers
all computer-based funds transfer systems, including ATMs (automated teller machines),
EFTPOS and debit cards, EFT-EDI (electronic data interchange) systems, and the US
automated clearing house (ACH) network. There are several major worldwide EFT
networks, including the SWIFT (Society for Worldwide Interbank Financial Transmission)
network.
Electronic Funds Transfer (EFT) is a system of transferring money from one bank
account directly to another without any paper money changing hands. One of the most
widely-used EFT programs is Direct Deposit, in which payroll is deposited straight into an
employee's bank account, although EFT refers to any transfer of funds initiated through
an electronic terminal, including credit card, ATM, Fedwire and point-of-sale (POS)
transactions. It is used for both credit transfers, such as payroll payments, and for debit
transfers, such as mortgage payments.
Transactions are processed by the bank through the Automated Clearing House
(ACH) network, the secure transfer system that connects all U.S. financial institutions. For
payments, funds are transferred electronically from one bank account to the billing
company's bank, usually less than a day after the scheduled payment date.
The growing popularity of EFT for online bill payment is paving the way for a paperless
universe where checks, stamps, envelopes, and paper bills are obsolete. The benefits of
EFT include reduced administrative costs, increased efficiency, simplified bookkeeping,

and greater security. However, the number of companies who send and receive bills
through the Internet is still relatively small.
The U.S. Government monitors EFT compliance through Regulation E of the Federal
Reserve Board, which implements the Electronic Funds Transfer Act (EFTA). Regulation
E governs financial transactions with electronic payment services, specifically with regard
to disclosure of information, consumer liability, error resolution, record retention, and
receipts at electronic terminals.

CHAPTER THREE
3.0
3.1

SYSTEM ANALYSIS AND DESIGN

SYSTEM ANALYSIS
This new system of E fund transfer is based on the analysis that was carried out

from previous conventional means of fund transfer. The systems were analyzed during
the cause of carrying out feasibility study and at the end of the analysis it was brought to

a conclusion that a new system should be designed to replace the normal conventional
means of fund transfer.
During the analysis emphasis was given to understanding the details of the
existing system and then deciding if the proposed system is desirable or not and if the
existing system needs improvements. Thus, the system analysis is the process of
investigating the old system, identifying problems, and using the information to
recommend improvements to the system so as to design a suitable one that will meet the
need of the general public.
3.2

DESCRIPTION AND ANALYSIS OF EXISTING SYSTEM

The existing system of transferring fund seems to be strenuous and time

consuming and as well encouraging theft.

This method was done directly by deposit of the fund which takes hours or days for
the money to be posted to the receivers account. And most times the sender has to wait
for long before the casher can attend to him / her all in the name of transferring or
sending money to another person.
Most time, the sender has to withdraw money from his / her account before sending
the money to the receiver and because this money is carried by hand, is can therefore
attract theft to rub the money from the person involve. Due to all these problems
associated with the conventional means of transferring money, it was now imperative by
the bank to introduce a new method of fund transfer to reduce the time wasted, risk and
other factors militating against easy and fast means of fund transfer.
3.3

PROBLEM OF THE EXISTING SYSTEM

Some of the problems that were associated with the formal method of fund transfer is as
stated below:
i.

Delay in transferring of fund

ii.

The process was slow due to the number of customers the bankers have to attend

to.
iii.

The system can easily attract theft, whereby customers have to withdraw money

from their account and take it to another bank for deposit and during the process they can
be attacked by harmed rubbers.

3.5

SYSTEM DESIGN

The purpose of this system design is to create a technical solution that satisfies the
requirements of United Bank of Africa. The system is design in such a way that fund can
be transfer electronically at the comfort of the home without stress or moving from one
place or the other.
This system is design using Microsoft visual basic 6.0 and as well as the codes that are
meant to control the various element functionality of the entire software.
3.6

INPUT ANALYSIS

The input analysis for the fund transfer was analyzed to make the system to function in
such a way that it will be user friendly which means, users will be able to make any
transfer as easy as possible even without an assistance from anybody. In the cause of
this analysis, it was analyzed that before anybody will transfer his or her fund, he has to
check his or her account before any transfer can be make.
3.7

OUTPUT ANALYSIS

This is determined from the information that is collected from the passenger and then
inputted into the system for processing so as to get the assign seat reservation for the
passenger. And this can be given to the passenger as a slip printed out from the system
indicating all the information of the passenger and at the end of the slip is the seat
reserve for the passenger.
3.9

DESIGN APPROACH

The developed design approach of this new system is illustrated by the means of a
program segment of modules which is broken down into the input, processing and output
module. Whereby the input involves the entering of information using any of the input
device, while the process is done within the central processing unit which in turn gives out
the result either on the screen or on a hard copy (printed out)
3.9.1 DESIGN SPECIFICATION
The purpose of a Software Design Specification (SDS) is to define the software that is to
meet the functional requirements for the project. It is the stage at which the supplier
specifies the detailed design of the software system, produces the program code to
realize that design, tests the individual programs and integrates them into the complete
software system.
3.9.2 INPUT DESIGN
This stage depend on how the output of the system will be thus, the method of data entry
into the computer system was defined, such as appending of records into the database of
the system. The input design for this software is shown below.
The input approach enables the input to the system and then access what processing
operation s are needed to convert data to specific output.

3.9.3 OUTPUT SPECIFICATION

The output design is done in such a way that, the end result of the system is meant to
display all the necessary information that was entered during the transfer process of fund
from one account to another, which includes the account name, account number, amount
been transferred. With this, decision making can be made possible to ascertain the
actual transaction process that took place at that particular time.

3.10 SYSTEM REQUIREMENT

The software requires some system to work properly with which can enhance the proper
use of the system. These system requirements are divided into two. They are:
I.
II.

Hardware requirement
Software requirement

HARDWARE REQUIREMENT
This is the physical structure of the computer that we can feel and touch with our hand.
Some of these components are
I.
II.

Pc computer e.g Pentium M

Input devices e.g keyboard, mouse etc.

III.

Output devices e.g printer monitor

IV.

Uninterrupted power supply

CHAPTER FOUR
4.0
4.1

SYSTEM IMPLEMENTATIN AND MAINTENANCE

SYSTEM IMPLEMENTATION

The implementation of this new system begins after the management has accepted the
new system. It follows the detailed design state and consists of installation of the new
system and removal of the old system. This involves the co-ordination of the efforts of the
user department and the system analysts record department in getting the new system
into operation. During the process of implementing the new system, the old system is also
used in line with the new system in the AIRLINE so as to support the newly implemented
software in case the system does not meet up with the necessary requirement or unable
to perform as expected. The implementation of the new system involves the following
stages
I.
II.

Testing of the program

Education and training of staff

III.

System change over plan

4.2

DEVELOPMENT AND TESTING OF PROGRAM

Developing this software is a step by step process and the processes are together called
as Software Development Lifecycle. There are totally some steps involved in the software
development and each step has a set of process specifically. Some of the steps are
I.
II.
III.

Planning
Analysis
Design

The products working form is tested for defects. Testing is almost final part in the
development process. The last time adjustments are made in the software before giving
the software to the end user. The person who performs this testing is known as testers.
4.3

EDUCATION AND TRAINING OF STAFFS

The training of the staffs that will make use of the system or implementing its capabilities
must be done swiftly so as to elude lapses. Handouts on the use of the computerized
system will be given out so that the users of the system will have an eroded confidence
when using the system; although the system is designed in a very simple way and can be
operated by anyone with little or no knowledge of the operations of the system.
4.4

SYSTEM CHANGE OVER PLAN OR SCHEDULE

Before a new system is implemented in full, the new system must be tested thoroughly.
Individual part of the system would have been checked and accepted; staff would have
been trained in the new procedures. Then it is time to change over from the current
system to the new system. The different types of change over are
I.

Direct changeover: The direct changeover approach causes the changeover from
the old system to the new system to occur immediately when the new system becomes
operational. It is the least expensive but involves more risks than other changeover
methods.

II.

Parallel operation: The parallel operation changeover method requires that both
the old and the new information systems operate fully for a specified period. Data is input
to both systems and output generated by the new system is compared with the equivalent
output from the old system. When users, management, and IT group are satisfied that the

new system operates correctly then the old system is terminated. It is the most costly
changeover method and involves lower risks.
III.

Pilot operation: The pilot changeover method involves implementing the complete
new system at a selected location of a company. Direct changeover method and
operating both systems for only the pilot site. The group that uses the new system first is
called the pilot site. By restricting the implementation to a pilot site reduces the risk of
system failure as compared with is less expensive than a parallel system.

IV.

Phased operation: The phased operation changeover method involves implementing

the new system in stages, or modules. We can implement each subsystem by using any
of the other three changeover methods. In this approach risk of errors or failures is limited
to the implemented module only as well as it is less expensive than the full parallel
operation.
4.5

DOCUMENTATION

The documentation of the software includes all of the documents describing the system
itself.
It is a written text that accompanies the computer software. It either explains how it
operates or how to use it, or may mean different things to the staffs in the AIRLINE using
the software. This is what the researcher

means when using the term software

documentation. When creating the software, code alone is insufficient. There must be
some text along with it to describe various aspects of its intended operation. It is
important for the code documents to be thorough, but not so verbose that it becomes
difficult to maintain them. Several How-to and overview documentation are found specific
to the software application or software product being documented by the programmer.

This documentation may be used by developers, testers and also the end customers or
clients using this software application from the requirements specification to the final
acceptance test plan. The documentation describing the design, implementation and
testing of a system are essential if the program is to be understood and maintained. With
the help of the documentation adjustment can easily be made on the system by making
reference to the software documentation.
4.6

MAINTENANCE

This is the virtual last part or stage in the software development process. Actually is a
continuous process and a tough process too. Large amount of money is spent on
maintenance of the software. The developer of the software deploys a team to maintain
the software they have developed. And this normally occurs when there is any need for
update and adjustment of the software.
And most times, the maintenance is usually carried out by the software developer or the
IT personal that is trained to carry out the maintenance in the Airline.
The maintenance of the software also refers to the modification of the software product
after delivery to correct faults, to improve performance or other attributes. A common
perception of maintenance is that it merely involves fixing defects.
4.7 THE IMPORTANCE OF SOFTWARE MAINTENANCE
The importance of this software maintenance is categorized into four classes Adaptive
dealing with changes and adapting in the software environment
I.

Perfective accommodating with new or changed user requirements which

concern functional enhancements to the software

II.

Corrective dealing with errors found and fixing it

III.

Preventive concerns activities aiming on increasing software maintainability and

prevent problems in the future

In the process of carrying out maintenance on the software, there are some factors that
must be considered before such an act can be carried out. Some of these factors are:
I.
II.

Error prone modules

Manual change control methods

CHAPTER FIVE
5.0

SUMMARRY, CONCLUSION AND RECOMMENDATION

5.1 SUMMARRY
In summary, Electronic funds transfer (EFT) is the electronic exchange of money
introduced by United Bank for Africa, from one account to another, either within a single
financial institution or across multiple institutions, through computer-based systems.
United bank for African which is one of the major banks in Nigeria, came with this
idea of electronic fund transfer which will aid customers for easy transaction between
individuals and for business purposes. This was mainly embarked upon so as to reduce
the problem of rubbery on the high way when ever businessmen and women are
embarking on a business trip.

This transfer of funds, as from one account to another or from buyer to seller, by
telephone or computer. The use of Electronic funds transfer (EFT) results in the
instantaneous movement of money. The additional time that the funds are available to
earn income can offset the fees charged by institutions for this service.
Electronic funds transfer (EFT) is the means by which financial institutions
exchange billions of dollars every day without the physical movement of any paper
money. Money moves electronically from one bank account to another, usually within 24
hours of a scheduled payment.
The system covers all electronic credit and debit money transfers, including direct
deposits -- which occur when you authorize your employer or other payer to automatically
deposit payroll into your bank account -- debit card and ATM transactions, online bill
payment, wire transfers, and debit transfers as well as automatic deductions from your
accounts to make regular payments.
In other to achieve this, an automated system has to be put in place to overcome
all the problems that was stated in chapter one.
5.2

CONCLUSION

Research and development are continuous processes; this is same in computer and
software development. However, the effectiveness and efficiency of this new system
provides room for further improvements. As earlier mentioned, some of the objectives of
this project were not actualised due to some limitations. So these objectives could be
improved upon. Nevertheless, the electronic money transfer system will offer greater
opportunities in the banking sector using United Bank for Africa as a case study.

5.3

RECOMMENDATIONS
In the course of this research work, a lot of things were noted. It was discovered

that most banks and business outfit still rely on the manual method of transferring funds
which can be done manually.
As the trend of information technology continue to trend upward, it was necessary
for all financial institution to embrace this fabulous system of fund transfer which makes
life comfortable. With this system fund can be transferred anywhere and at anytime of the
day in as much as the device is connected to the internet. This can help to reduce the risk
of getting attacked by armed robbers.
The banking institutions should also make the system affordable to the general
public by reducing the monthly charges that is attached to it. By doing that more
customers will like to embrace the package, by so doing, the risk of carrying money from
one place to the other will be reduced.
Lastly, the banking sectors should make the general public to be aware of the
system by informing them about the advantage of the system and how safe it is when
they are using it. This awareness program can be done through shearing of hand bills,
news paper advert and lastly through the media houses. By so doing, more people will
take advantage of the system.

5.4

LIMITATION OF THE STUDY

This project covers all aspect of electronic fund transfer system using United Bank

for Africa as a case study.

However, in the course of this project work the following were the following
constraints that were encountered:
Time constraints: Due to time constraint, the software developement covers only United
Bank for Africa and the system was only limited to current and savings account. The
reason was because there was not enough time to carry out the necessary analysis for
inter country transfer. This system is only limited to a local transfer system.
Financial constraints: It would cost a lot to develop a full flier based system due to the
money that is involved to run it.

REFERENCES
Anigbogu, G. (2000): Electronic fund management system.
Mayfield publishing Company. Plateau
Basil A.P. (2007): System for fund transfer . James publication ltd. Calabar
Benson O. (1987): Electronic and wire system for implementing money transer.
Great publication, Ikeja Lagos.
Chimezie F. (2000): "Use of local area networks in the banking sector,

Eric publishing Company, Enugu

Clifton E.B. |(1983). Managerial and financial system of a banking institution.
Ado Publications Company Enugu, Enugu state.
Daniel O.T (1999): System analysis on financial system development
Jeo publication Int. UK.
Edward I.E. (1990): Financial management system. Temitope publication. Ibadan
FURTHER READING:
"Check it Out. Check Clearing for the 21st Century Act of 2003 Allows Banks to Transmit
Cheques Electronically." U.S. News & World Report, 8 November 2004.
Mearian, Lucas. "First Horizon, SunTrust First Banks to Share Check Images;
Southeastern Banks Overcome Technical Issues." Computerworld, 3 January 2005.
Sliwa, Carol. "EDI: Alive and Well After All These Years. Transactions Increase, Despite
XML Option." Computerworld, 14 June 2004.
Stern, Linda. "That Check Won't Float." Newsweek, 20 September 2004.

APPENDIX
Frame1.Visible = True
Text1.SetFocus
On Error Resume Next
With Adodc1.Recordset
.MoveFirst

.Find " NUMBER ='" & Text1.Text & "'"

If .EOF Then
MsgBox ("No records found"), , "Find Record"
End If
End With
MENU.Show
End Sub
Private Sub Command2_Click()
Adodc1.Recordset.AddNew
Unload Me
MENU.Show
End Sub
Private Sub Form_Load()
Label2.Caption = TRANSFER.Text2.Text
Label3.Caption = TRANSFER.Text3.Text
Label4.Caption = TRANSFER.Text4.Text
Label12.Caption = TRANSFER.Text6.Text
Label13.Caption = TRANSFER.Combo1.Text
Label14.Caption = TRANSFER.Text5.Text
Label15.Caption = TRANSFER.Text8.Text
Label16.Caption = TRANSFER.Text9.Text
MsgBox "ARE YOU SURE YOU WANT TO CARRY OUT THIS TRANSFER?!", ,
vbYesNo

End Sub
Private Sub ACCOUNTBANCE_Click()
Unload Me
CHECK.Show
End Sub
Private Sub CMDFUNDTRANSFER_Click()
Unload Me
TRANSFER.Show
End Sub
Private Sub Timer1_Timer()
Image1.Visible = False
End Sub
Private Sub Timer2_Timer()
Image1.Visible = True