CASHLYNK:

MOBILE BANKING APPLICATION WITH BLOCKCHAIN

A Semi Capstone

Presented to the Faculty of

College of Computing Studies

Don Honorio Ventura State University

In Partial Fulfillment

of the Requirements for the Subject SAD

Bachelor of Science in Information Technology

by:

Soriano, Sean Reiner T.

Centeno, Dodge Aaron M.

Danganan, Marion C.

Tulagan, Maurence S.

Simbulan, John Michael S.

Quimno, Alvin R.

Padua, Adrienne Marco O.

 March 2024

APPROVAL SHEET

This Semi-capstone research project entitled “CashLynk: Mobile Banking Application with
Blockchain,” presented orally and submitted by Sean Reiner T. Soriano, Dodge Aaron M. Centeno,
Marion C. Danganan, Maurence S. Tulagan, John Michael S. Simbulan, Alvin R. Quimno, and
Adrienne Marco O. Padua as partial fulfillment of the requirements for the Subject SAD of Bachelor
of Science in Information Technology has been examined and hereby recommended for approval and
acceptance.

RIC M. TORREGOZA

SAD Instructor
 TABLE OF CONTENTS

Title Page……………………………………………………….................................................…...i

Approval Sheet…………………………………………………………………………………….. ii

Approval Sheet…………………………………………………………………………………….. iii

Chapter I…………………………………………………………………………………………… 1

Introduction………………………………………………………………………………………. 2
CHAPTER I
 CHAPTER I

This chapter includes the introduction, objectives of the study, scope and limitation,
significance of the study, and the definition of terms.

INTRODUCTION

With the rapid development of information technology and the continuous growth of the
banking industry, mobile banking, one of the fundamental developments in mobile communications,
has progressively become an essential component of people's daily lives (Jebarajakirthy et al., 2021;
Sharma, 2019). Mobile banking refers to the banking services offered by online banking platforms
using mobile terminals such as phones and PDAs. Mobile banking enables consumers to access their
bank accounts and conduct a variety of financial and non-financial transactions at any time and from
anywhere (Sharma, 2019; Zhou, 2020). Moreover, a Blockchain is a technology that allows digital data
to be stored in a public, shared database. It is essentially nothing more than a series of immutable blocks.
All sorts of banking apps can be served with these immutable blocks. Blockchain has the potential to
change the banking process to a secure and efficient process which will be a completely transparent
procedure compared to these regular processes. This technology is well known as the cryptocurrency
(Bitcoin)’s backbone technology (Cointelegraph, 2021).

Nowadays, mobile banking has grown in popularity. The past COVID-19 regulations had a
significant impact on the banking sector. During the pandemic, people began to use cashless
transactions. However, there has been a change in mobile banking habits. Future mobile banking trends
are moving people towards a cashless society. Mobile applications have become the lifeline of all
industries. The future trends in mobile banking are helping banks to evolve with security. Tech trends
like chatbots, biometric security, and blockchains are enhancing the user experience. These trends
especially fulfill the needs of new-age individuals. Secure payments and faster operations are all that
the new generation needs (Appsierra 2023). An example of blockchain is the consortium blockchain. It
is a blockchain network that is managed by multiple organizations. Rather than creating their own
blockchain platform from scratch, new participants can join a consortium and contribute to the
management of an already established structure and shared data. By working together to address
common challenges, businesses can reduce costs and speed up development time. It allows
organizations to collaborate and work together on a shared platform, which can lead to increased
efficiency and reduced costs (Gülen, 2023).
 However, given the sensitivity of financial data, its primary disadvantage is the data security
issue (86 % of Canadians believe their bank provides secure digital banking services, according to the
Canadian Bankers Association). The services provided and related security are the main factors that
influence mobile banking usage. Users of mobile banking applications were aware of information
security, according to Arisya et al. Boutin and Chouinard pointed out that the number of cyberattacks
in the Canadian financial sector increased between 2014 and 2019. For example, in May 2018, 40,000
and 50,000 clients of Canadian banks CIBC and BMO, respectively, were impacted by the exposure of
confidential information.

Afterwards, data privacy, availability, integrity, and confidentiality must be ensured by service
providers. The term "data confidentiality" describes the idea that only people who have authorization
can access the data. Integrity ensures that the data is in a readable format and has not been tampered
with. Availability ensures that authorized users may always access data, whereas privacy deals with
protecting users' identities. (Loïc D.Tsobdjou,et al., 2024)

OBJECTIVES OF THE STUDY

General Objective

This study aims to develop a mobile banking application with blockchain that will
provide security, transparency, and efficiency in financial transactions.

Specific Objectives

1. To offer users flexibility and convenience in managing their finances anytime, anywhere,
without the need to visit a physical bank branch.
2. To enhance security measures to protect sensitive financial information and transactions
conducted through the app.
3. To provide innovative mobile banking solutions that attract and retain customer in a
highly competitive market.
SCOPE AND LIMITATION
This study focuses on the development of a mobile banking application with blockchain integration,
that is designed to give users an excellent and effective banking experience. These functions include
financial transfers, loaning/credit services, bill payment, and transaction history tracking. By utilizing the
app to pay bills straight from their mobile devices, users can easily handle their financial commitments and
deal with the need for paying bills by hand. The application uses blockchain technology to guarantee the
security and immutability of financial documents, and it also keeps a weekly transaction history.
Additionally, customers may obtain credit and lending services via the app thanks to blockchain's smart
contract capabilities, which optimizes and simplifies lending procedures.

SIGNIFICANCE OF THE STUDY

The results of this study are considered significant. The researchers had in mind that the
research material gave significance to the following sectors:

User
• This study will benefit the user with convenient access to banking services from any location,
eliminating the necessity of visiting physical bank branches.

Financial Institutions
• Financial institutions will benefit from mobile banking apps by reducing operational costs
associated with maintaining physical branches and manual processes, thereby minimizing
overhead expenses.

Elderly and Persons with Disabilities

• Mobile banking provides elderly individuals and people with disabilities convenient access to
banking services, overcoming challenges associated with visiting physical branches.

Small Businesses
• It will help the small businesses handle account management, payment processing, and
financing options via mobile banking apps, leading to streamlined financial operations and
increased efficiency.
CHAPTER II
 CHAPTER II

REVIEW OF RELATED LITERATURE

Mobile Banking Application

Mobile applications are software programs developed for mobile devices such as smartphones,
tablets and watches. Nowadays, mobile device usage is outstripping desktop computers and laptops. As
a result of that many developers have shifted to the “mobile first” approach which causes an explosive
growth in mobile apps development. The three major players in the mobile apps supply are Google play
for Android devices, Apple’s app store for iPads and iPhones. The numbers of mobile apps are widely
increasing, and this becomes a big challenge for users to find interesting applications. As a result of
this, the system used online app markets to help provide users with app suggestions. The mobile apps
are widely known by the number of downloads, active users or the usage frequency (Umekwudo, 2019).

In the midst of increasing global rivalry in the banking industry, modern banks are working
hard to provide innovative banking technologies that improve the system's capabilities and
infrastructure. Customers and banks as the service provider have benefited greatly from the use of
mobile banking, which is the newest delivery method introduced by major retail and microfinance
banks. Customers that use mobile banking have the ability to do a variety of banking tasks at any time
and from any location, including checking their account balance and paying bills. Furthermore, in the
majority of developed countries, mobile banking services offered by banks are often safe, secure, and
cost-free (Ghobakhloo et al., 2019).

The traditional means of communication between businesses and their clients have certainly
evolved as a result of mobile phones. Researchers have observed this trend closely and have found that
the broad adoption of mobile payment systems will significantly change the ways in which goods and
services are purchased. By providing the first universal payment solution, MP systems will also offer
unique value to customers as well as service providers. Consumers would appreciate the quick and easy
services, while service providers would win over new clients by offering the bonus of lower transaction
costs. Given that mobile banking allows customers to independently conduct financial transactions
through their mobile devices and that these developments present potential profits for merchants and
service providers, mobile banking is regarded as one of the most revolutionary technological
breakthroughs in the banking industry. A mobile payment made through mobile banking is, in this
context, a much more advanced and versatile application that incorporates elements of mobile
transactions (Sharma et al., 2019).

Banks have been investing in electronic channels in order to lower operational expenses while
giving their customers more flexibility in meeting their needs and receiving more full and timely
information. Banks now have the chance to give their clients with more consistent and adaptable
financial services that boost client efficiency, thanks to the rising usage of smartphones and tablets.
Customers can use an application to communicate with the bank using mobile banking, a wireless
service. Through a browser, virtual store like google store, app store, or the bank's website, they can
download this program and use it. A Personal Digital Assistant or PDA, tablet, smartphone, mobile
phone, or wireless media player can all be with the app. Customers can do remote banking tasks with
the help of mobile banking services, such as monitoring the balances and transactions of their personal
accounts or transferring money between domestic and foreign accounts. They can also place purchase
or sell orders, view real-time capital market quotes, and make payments (Picoto et al., 2021).

Blockchain

Furthermore, the 21st Century is all about technology. People are open to accepting new
technologies as the need for modernization is increasing every single day. Blockchain is one of those
new and revolutionary technologies that will have a significant impact on the market and industry. In
layman’s terms, Blockchain is a data structure that stores transactional records while also ensuring
security, transparency, and decentralization. There is a digital signature on every transaction on a
blockchain, which proves the authenticity of the blockchain. In a Blockchain, data is stored which is
tamper-proof and cannot be changed as it uses encryption and digital signatures. To change a record on
a blockchain, one needs to change several records, and one needs to change the distributed ledger.
That’s why it’s quite impossible to change the data which has already been entered into a Blockchain.
The Blockchain is a technology that will allow transactions simply, safely, effectively, and also safely.
This is a very promising technology. It’s already in a lot of places. It can also solve any problem in the
banking sector. This technology became famous after introducing the first cryptocurrency, which is
known as bitcoin (Chowdhury et al., 2021). Moreover, it is a recent development in digital technology
that offers excellent privacy protection together with strong cyber security. Because digital information
may be shared but not duplicated, it is a distributed ledger technology. It is a component of data, Bitcoin,
and almost anything valuable. It is utilized to create a safe, anonymous, unchangeable, and transparent
service without the necessity for a third party to act as a go-between, authority for verification, or for
any other purpose. Recommendation algorithms for mobile applications can leverage a blockchain to
enhance privacy, security, and engagement. (Umekwudo, 2019).

Blockchain is an unchangeable ledger used in distributed networks to record transactions that

is kept up to date by untrustworthy peer nodes. Blockchain's many beneficial security features are
primarily responsible for its widespread adoption. The availability feature specifically makes sure that
the blockchain network remains accessible even in the event that certain nodes become unreachable,
while the immutability characteristic assures that recorded transactions are irreversible provided that
the number of corrupted nodes at the same time is kept to a maximum. When a peer engages in
malicious activity, the accountability property allows for the taking of appropriate measures, such as
financial penalties; the provenance property shows that blockchain technology offers tamper-proof
information about the source of data. These properties ensure that all peer nodes in the blockchain
network maintain a globally consistent record upon invocation (Chen et al., 2024).

According to Don & Alex Tapscott, the authors of Blockchain Revolution (2016), "the
blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record
not just financial transactions but virtually everything of value." A Forbes magazine article describes
blockchains as a type of secure distributed database that maintains unchangeable ordered lists of records
called blocks. Consider a Microsoft Excel spreadsheet that is copyable across a network of computers
an unlimited number of times and assume that the computer's network is capable of routinely updating
the Excel spreadsheet.

Leveraging blockchain technology has the potential to fundamentally change the financial
industry in the future. Central banks, financial organizations, and technological companies have also
expressed interest in blockchain technology, and they are currently debating and researching the
advantages and disadvantages of adopting it (Kapadia, 2021).
RELATED STUDIES
Thanks to Blockchain, banking might finally have what it takes to have a lasting impression on
our traditional financial institutions. Banking institutions can use the unique features of blockchain
frameworks to significantly change the way the economy operates by taking advantage of this new
development in the financial situation. Innovation in blockchain technology has the potential to
completely transform how businesses operate in almost every sector of the global economy. Blockchain
is facilitating efforts to drive greater straightforwardness, detectability, and operational productivity for
a significant number of deals and agreements as the technology and its use applications continue to
progress.

Blockchain is viewed as one of the inventions of the future, alongside artificial intelligence,
robotics, massive information, and so on. Blockchain technology has drawn significant attention from
financial institutions such as banks, private equity firms, new businesses, and others. Big banks like
Merrill Lynch, J.P. Morgan, HSBC, The Bank of America, and many more have successfully conducted
a blockchain exchange and are looking forward to using the innovation in their strategy. The
decentralized, permanent record that is a feature of blockchain technology may provide the insurgents
with a foundation for keeping records. Blockchain technology is applicable to almost all businesses,
including banks. It has the potential to change the financial system's backend and greatly decrease
operating costs. The foundation for solving the current issues in banks would be blockchain
(Chowdhury et al., 2021).

According to Mbaidin, blockchain is a distributed record system that has been praised as the
Internet era's game-changing innovation. In order to obtain a competitive advantage, blockchain
technologies have the potential to strengthen remittances and increase financial services. The potential
of blockchain technology to replace and improve correspondent banking and other international
payment infrastructure may have been studied by authorities and operators. Blockchain technology
creates a distributed record where transactions are verified and recorded. Digital banking links, also
known as "Nostro-Vostro accounts," are agreements between authorities that allow banks to operate in
any country; they don't need a significant amount of authority (Mbaidin et al., 2023).

According to Ahmed K., the customer lacks control over the sharing of their financial and
personal information with the growing number of authorized financial service providers in the modern
digital banking era. An emerging area of open banking is called "open finance", where financial
institutions, regulated websites, and financial applications can access transactional details, such as
customer financial data from their bank accounts and payment services, such as savings, insurance, and
credit (or a portion of it), typically through the Application Programming Interface (API) and with the
consent of the user. Blockchain-based SSI systems can implement the identity concept and take
advantage of the many features that Blockchain offers, like distributed key management, immunity,
encrypted data storage, and distributed storage. The identity owner regains control over the preservation
of their identity information and the ability to selectively disclose it thanks to SSI. It makes it possible
for a decentralized system to reduce the chances that compromised centralized identity stores will result
in data leakage (Ahmed et al., 2023).

In this paper, the author said that utilizing a digital payment system built on blockchain
technology offers the potential for faster and more secure financial transactions. Smart contracts, which
encode the terms of agreements directly into code, can enhance this system by automating complex
financial processes. Mobile banking apps enable users to manage their finances conveniently through
tasks like balance checks and bill payments on their mobile devices. Integrating blockchain into these
apps enhances security and transparency in financial transactions. Compared to traditional methods,
blockchain-based digital payment systems offer heightened security and efficiency, reducing the risks
of fraud and errors. Smart contracts, integral to blockchain systems, automate transactions based on
predefined conditions, facilitating processes like loan issuance and derivatives trading (Hasan et al.,
2022)

CONCEPTUAL FRAMEWORK

INPUT PROCESS OUTPUT

User Authentication:
User Input: User Interface:
- User’s Biometrics
- User’s Profile - A user-friendly
(verifying user’s
(username, email, mobile banking
credentials for login,
password, birthday, age, application that allows
sending money, and edit
gender, mobile no., users to send money and
profile)
address, zip code) pay bills on their mobile
Sending / Receiving devices.
- User’s Biometrics (for Money:
authentication / security) Search Topics:
- Transfer the money
- User’s Account - Display the search
to the account of the
Number (for bills topics with step-by-step
sender/receiver
payment) process
Paying Bills:
Receiver’s Information: User’s Notification:
- Checking the account
- Receiver’s Profile - Display the sender’s
number of the user
(username, mobile no.) name, receiver’s name,
Edit Profile: mobile no., amount
Help Center: send/received in a
- Update the user’s notification bar
- Search topics profile

FEEDBACK
DEFINITION OF TERMS
The following terminologies used in the entire study were provided with meanings for a better
understanding:

Immutable. This refers to describe something that is incapable of change, but the word itself—
like all words—is mutable, both capable of and prone to alteration.

Cryptocurrency. This refers to a digital currency, which is an alternative form of payment created
using encryption algorithms. The use of encryption technologies means that cryptocurrencies function both
as a currency and as a virtual accounting system. To use cryptocurrencies, you need a cryptocurrency wallet.
Biometric security. This refers to a modern identification and authentication method that uses
unique physical traits, such as fingerprints, facial recognition, iris, or retina scans, to verify a person’s
identity.
Personal Digital Assistant (PDA). It is a term that refers to a small computing device. They are
also referred to as handheld computers.

Outstripping. To go faster or farther than.

Ledger. Is a book in which a company or organization writes down the amounts of money it spends
and receives.

Bitcoin. A digital currency created for use in peer-to-peer online transactions.

Self-Sovereign Identity (SSI). It is a model for managing digital identities in which individuals or
businesses have sole ownership over the ability to control their accounts and personal data.

Nostro. Nostro comes from the Latin word for "ours," as in "our money that is on deposit at your
bank."

Vostro. Vostro is a Latin word that means “your”, therefore, a vostro account implies that it is “your
account”.
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