Arelational database is a type of data that is capable of relatingpieces of information stored in it so as achieve the desiredfunctionality. It is used to store information that is required byapplications that are built using object-oriented programminglanguages such as C#, Java, and also procedural technologies likeFORTRAN and COBOL. A relational database provides better store datain tables (Harrington, 2016). This paper will focus on theapplication of relational database in the banking industry for thepurpose of managing customers’ information effectively
Banksdeal with sensitive information of their clients which includepersonal information that is used for identification purposes anddetails concerning the financial position of an individual or anorganization. These data are utilized in the management of theclient`s bank account. A client can have more than one bank account,and therefore the data stored in the bank`s databases are related.Banks need to deploy a mechanism that would enable them to managetheir data effectively and in a secure manner. This can be achievedthrough the integration of relational database into their system.
Suitabilityof Relational Database to the Banking Sector
Arelational database can abstract data and help in facilitating theflexibility of the application. The primary function of therelational database is to separate physical data storage from theconceptual representation. It can provide a mathematical foundationfor querying and data representation. It has a relational data modelthat can provide an alternative to the interfaces of programminglanguage thus making it faster in writing new queries. This makes itsuitable for the banks since they need to update their databasefrequently to conform to their business needs which are dynamic innature (Harrington, 2016).
Inaddition, a relational database can capture, manage and storeinformation in such a way that it can be retrieved quickly. Therelational tables that are used to store information follow certainintegrity rules that ensure that the data stored is accurate andaccessible when needed. It does not give room for duplicate rowshence the data stored cannot be compromised.The other integrityrule which ensures that data stored is accurate and can be retrievedwhen needed is the null value concept. It takes care of scenariowhere data is not available by indicating a missing value using anull value. This is because zero is considered to be equal to zero, ablank is considered equal to another blank, but two null values arenot considered to be equal. These features of relational databaseplay a crucial important managing sensitive information of the bankusers. (Harrington, 2016).
Benefitsof Relational Database to the Banking Sector
Oneof the advantages of a relational database is that data is storedonce. This eliminates the need for creating multiple datamodifications which may affect its integrity of the data, the changesmade to a given section of the database affect all the records inother tables that are linked to it this helps in modifying anddeleting details. Secondly, a relational database offers bettersecurity which is crucial to the banking industry. When splittingdata into the tables, some particular tables are made confidential.This implies that when a person login with the username and password,the system can limit access to tables with authorization as per therecords. Its third benefit is that it caters for future needs of theuser. Data are held in different tables making it easy to add recordsthat are not required at the moment but may be needed in the future(Harrington, 2016).
Everyorganization should implement a relational database in their systemdue to many benefits that they can derive from using it. It providesbetter security and ensures that the data stored is accurate and canbe accessed when needed. This functionality allows the banks tomanage their data effectively. The advancement of technologyincreases the risk of cyber-attacks. These attacks target establishedorganizations like banks. The management of the banks should adoptrelational database due to its convenience and security.
Harrington, J. L.(2016). Relational Databases and “Big Data”: The Alternative of aNoSQL Solution. Relational Database Design and Implementation,585-596. doi:10.1016/b978-0-12-804399-8.00028-4