Question

List any two ways in which database application is used in the Banking Sector.

Hint:

Banks use databases for storing account details and processing real-time transactions.

Answer 1

Databases play a vital role in managing massive volumes of sensitive and transactional data in the banking sector.
Two major applications include:
(i) Customer Account Management: Databases are used to store personal and account-related information such as account number, balance, transaction history, and identification documents.
This ensures easy retrieval and updating of data for day-to-day operations.
(ii) Transaction Processing Systems: Every financial transaction like deposit, withdrawal, fund transfer, or loan repayment is recorded in real-time using database systems.
These systems ensure accuracy, speed, and security during high-volume transactions.