loanIT app

3. System Proposal
3.1 Results of System Study
Requirements Specifications
The Money Lending System will be a desktop application connected to a network of computers
through an application server and will be expected to perform the following functions:
Allow the administrator to add users of the system using username and passwords and
giving them access privileges.
Users can log into the system using their usernames and passwords.
Transaction Controllers are able to record a customers information onto the system and
update his details but cannot delete or alter the records pertaining to payment.
Transaction Controllers can view all customer records, debtor list, follow-up list, black
list, transaction history, reports and print.
Cashiers may view customer information only and cannot make any corrections in the
details section.
Cashiers may view and add customer payments.
Cashiers may view and print the debtors list and the black-list.
Cashiers may view and print the daily, weekly and monthly transaction history report.
Senior managers and executive Managers may view all reports and be able to delete a
customer from the black-list.
The system will have an audit trail which shows all activities performed by the users once
they have logged onto the system.
Block Black-Listed customers from obtaining other loans.
Approve loans through evaluating the customer details i.e. salary and employers
agreement on the paying terms.

System Functions
The Money Lending system will function as follows:
Collect and store customer data.
Update the payment information of customers.
Calculate interests and overdue charges on customer loans.
Track customers paying history and charge necessary interests.
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Provide cashiers and Transaction controllers with daily, weekly, monthly and yearly
reports of transactions.
Provide an audit trail which shows user activity on the system.
Show all customers who have not paid their loans on time and provide a follow-up list.
Show the number of debtors and the total amount they owe.
Track the customers who have defaulted their payments using the loan information and
Black-list them.
Give access to users according to their privileges and keep unauthorized users out of the
system.

Data Flow Diagram

Context Level (Diagram 2)

Money Lending System Use Case Diagram (Diagram 3)

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3.2 System Alternatives

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Possible Solution 1
Spreadsheets
Njere Micro-Finance could consider adopting to the use of spreadsheets such as an excel file where they
can input necessary functions and share it on a Local Area Network.
Advantages

Spreadsheets are cheaper and are easily accessible to everyone.

Excel functions are user dependent and this will allow the firm to manipulate the package to
suite their specific money lending needs.
Disadvantages

Spreadsheets will not address certain problematic issues such as security since anyone can view
and be able to tamper with customer data.

There will not be an audit trail to trace user activity on the file.

Functions can be tampered with by users and corrupt information thereby showing wrong
information.

Spreadsheets seem to address the calculations problem only but lack consistency and some
features such as ability to self-create a follow -up list and perform certain queries as required by
the firm e.g. searching a customer by loan_id or create a transaction history.

Cost Benefit Analysis (Table 2)

Item Description Quantity Cost

MS Office Software (owned) (owned)

Network Cables 50 meters $200

Network switch 2 $600

Total $800

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Current System Problems Resolved Unresolved

Bulky Files

Access rights

Audit Trail

Interest Calculations

Report Generation

Record security

Customer service time

Follow-Up and Black-Listing Consistency

Transaction History update and printing

Records Back-Up

Feasibility

affordability

Table 3

Analysis
According to the information given above in Table 3 although Spreadsheets may address some problems
which are affecting Njere Micro-Finance but it does not address to all and most key issues which need to
be addressed such as security issues. Solving the problem partially may not be necessary.

Possible Solution 2
Banking Software (Finnaco)
The firm could also consider adopting to a banking software e.g. Finnaco which is the current banking
software on the market to address its objectives.
Advantages

It can address all the problems such as calculations, security, follow ups and all inconsistencies
which Njere Micro-Finance is currently facing.

Disadvantages

The program is highly expensive obtain and to maintain.

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It is complex and even its training costs may require someone with previous banking experience.

It has too many unnecessary modules which still need to be maintained even if they are not in use
to ensure proper functionality.

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ITEM DESCRIPTION QUANTITY COST

BANKING SOFTWARE 1 $200 000.00

(FINNACO)

APPLICATION SERVER 1 $750.00

NETWORK CABLES 50 meters $200.00

TOTAL COST 200 950.00

Table 4

Table 5
Current System Problems Resolved Unresolved

Bulky Files

Access Rights

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Audit Trail

Interest Calculations

Report Generation

Record Security

Customer service Time

Follow -Up and Black Listing Consistency

Transaction History update and Printing

Records Back -up

Feasibility

Affordability

Overall Analysis
Although Finnaco may seem to address all the problems that Njere Micro-Finance want to mitigate its
cost on the market is high and small firms such Njere cannot afford to make use of it and meet its
maintenance costs.

Possible Solution 3
LoanIT app Money Lending System
The firm could also consider introducing the LoanIT app Money Lending System which is being
developed and described herein.
Advantages

It is custom made and relevant in the daily business procedures at the firm.

It is specifically made to address the problems which the firm is currently facing.

It is affordable to develop and hence the approach is feasible.

Training is easy since its user inter face will be made on consultation basis from the users.
Disadvantages

Developing may be time consuming as compared to getting an off the shelf system.

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Item Description Specifications Quantity Approximate

Cost
Application Server Corei7 3Ghz processor,1 1 $750.00
Terabyte Memory, 32 gig RAM
Linux software 1 $300.00
Anti-virus software Multi-User 1 $450.00
Network cable RJ45 50meters $200.00
Network Switch Multi-Port 2 $600.00
Desktop computers Dual core,320gig Memory,4 gig 4 $1400.00
ram
Development costs Visual Studio 2010, Developers $2000.00
Remuneration
Training For all staff members $1000.00
Ethernet Router $ 600.00

Total approximate $8300.00

cost

Table 6

Table 7
Current System Problems Resolved Unresolved

Bulky Files

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Access Rights

Audit Trail

Interest Calculations

Report Generation

Record security

Customer service Time

Follow up and Black listing consistency

Transaction History updating and printing

Records Back up

Feasibility

Affordability

Overall Analysis
The proposed system which is to be developed meets the requirements of the firm directly and given the
research and cost benefit analysis above it is highly recommended that Njere Micro-Finance develops a
custom -made system which suites their business procedures.

Recommendations
The Developer recommends Possible Solution 3 for Njere Micro-Finance. The Developer has arrived to
this conclusion after having looked at the reasons stated below.
Cost The cost of developing a custom-made Money Lending system are suitable for Njere
Micro-Finance given their capacity in the money lending business. The system is affordable to
develop, its training is also affordable as well as maintenance costs.
Relevance The Money Lending system will only consist of those modules which are required
by the business and directly address the problems faced by Njere Micro-Finance.
Feasibility- developing the system is highly feasible given the costs as shown in Table 6 and
given that it will be done only once and the rest of the time Njere will enjoy long lasting benefits
of a secure, handy business platform.

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