ER diagram of Bank Management System

For a banking management system, ER diagrams prove to be very useful. Let’s look at some ER diagrams for the banking system

Topic: ER diagram of Bank Management System

ER diagram is known as the Entity-Relationship diagram. It is used to analyze to structure of the Database. It shows relationships between entities and their attributes. An ER model provides a means of communication. 

ER diagram of Bank Management System has the following description : 

  • The bank has a Customer.
  • Banks are identified by the name, code, and address of the main office.
  • Banks have branches.
  • Branches are identified by a branch_no., branch_name, and address.
  • Customers are identified by name, cust-id, phone number, and address.
  • Customers can have one or more accounts.
  • Accounts are identified by account_no., acc_type, and balance.
  • Customers can avail of loans.
  • Loans are identified by loan_id, loan_type, and amount.
  • Accounts and loans are related to the bank’s branch.

Example 1: ER diagram of Bank Management System

Given below is an example of an ERD made for an online banking system. You can observe the different entities such as user, account, transaction, payment, and staff. Attributes of the entities are also mentioned, and clear relationships have been drawn as well.

ER diagram of Bank Management System

Example 2: ER diagram of Bank Management System

Here is a general ER diagram of a banking system. The following diagram shows how the information of a customer, his credit card, account, loans, etc., are linked with the working of the bank. Notice the entities and the attributes for better understanding.

ER diagram of Bank Management System

This bank ER diagram illustrates key information about bank, including entities such as branches, customers, accounts, and loans. It allows us to understand the relationships between entities. 

ER diagram of Bank Management System Entities and their Attributes :

  • Bank Entity: Attributes of Bank Entity are Bank Name, Code, and Address. 
    Code is Primary Key for Bank Entity.
  • Customer Entity: Attributes of Customer Entity are Customer_id, Name, Phone Number, and Address. 
    Customer_id is Primary Key for the Customer Entity.
  • Branch Entity: Attributes of Branch Entity are Branch_id, Name, and Address. 
    Branch_id is Primary Key for Branch Entity.
  • Account Entity: Attributes of Account Entity are Account_number, Account_Type, and Balance. 
    Account_number is Primary Key for Account Entity.
  • Loan Entity: Attributes of Loan Entity are Loan_id, Loan_Type, and Amount. 
    Loan_id is Primary Key for Loan Entity.

Problems with Building an ER diagram of Bank Management System

ER diagrams are usually used to resolve some sort of issue and so they always have a certain problem to solve. Some of the problems that can arise in a Banking System are as follows:

  • There are too many entities in a bank and so the ER diagram helps to accommodate all of them.
  • Some customers have more than one account. So, keeping track of each account is difficult. ERDs help to link the accounts to a single customer and form a relationship.
  • A single bank branch has multiple customers. So, you need a relational database of all the customers in a branch and how they are similar or linked (if at all).
  • Since a single customer can borrow more than one loan, it becomes a problem if you don’t have a proper database to keep track of the loans.
  • A branch has a lot of employees and all of them have unique features. Keeping an eye on all the employees is a tiresome job, so ERDs help us in maintaining a proper record.

I hope this ER diagram of Bank Management System would be useful for you to learn something new from this. If it helped you then don’t forget to bookmark our site for more Quiz Answers and solutions.

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