Automation of Microfinance Savings and Loan System Case Study: Countryside Microfinance

ABSTRACT Country Side Microfinance Ltd is one of the Institutions that have been facing problems. The problem faced by this institution is the paper work that is carried out in order to have the organization carry out its operations so as to maintain business processes going on. This has led to the organization to have a lot of delay in handling, disseminating and updating information regarding the monitoring, evaluation and analysis of information that was gathered about the institution and its clients from the daily activities and hence much time than necessary is lost in the slow manual process and bureaucratic procedures and methods. This is the reason the researcher saw it necessary to carry out the research and come out with recommendations at the end. During the research, the methodology that was used to carry out the study was not different from the usual method used in most researches and studies. These are the methods used to gather data from the population using the following methods like interview, questionnaires, cxisting documents and observation. When the data was collected, it was then analyzed so as to come up with the requirements for the system to be built to solve the existing problem. It was found out that, Country Side Microfinance does not have not computerized systems in place to handle their operations. It is therefore recommended that the institution fully adopt a computerized system so as to help organize their operations and monitor and evaluate the performance of the institution in order to keep track of the loan and savings systems.

TABLE OF CONTENTS

DECLARATION ii

APPROVAL

ACKNOWLEDGEMENT iv

LIST OF ABBREVIATIONS v

LIST OF FIGURES

TABLE OF CONTENTS vii

ABSTRACT

CHAPTERONE i

INTRODUCTION 1

1 General Introduction 1

1 .2 Background of the study 1

1 .3 Problem Statement 2

1.4 Objectives 3

1.4.1 Specific Objectives 3

1.5 Significance of the research 3

1.6 Scope of the research 4

1.6.1 Technological Scope 4

1.6.2 Geographic Scope 4

CHAPTER TWO s

LITERATURE REVIEW 5

2.0 Introduction

2.1 Information System 5

2.2 The Savings System 6

2.3 The Loan system 6

2.4 Loan Systems Available in the Market 7

2.4.1 Micro Financer Standard Edition, v. 2.0 8

2.4.2 CommonCents 101 (A Micro-Finance & Banking Software) 9

2.5 Management Information System 10

2.5.1 Characteristics of Management Information Systems 12

2.5.2 Roles of MIS 13

2.6 Designing the Management Information System 13

vii

4.2.2 User Requirements .28

4.5 Constraints 29

4.6 Conceptual Framework 30

4.7 Model Management Diagrams 31

4.7.1 Class Diagram- Relational 31

4.7.2 Use Case Diagram 34

4.8 System Design 38

4.9 Designing the prototype 38

410 Designing the Loan Subsystem 38

4.11 Designing the Accounts system 40

4.12 Physical Design 40

4.12.1 Input Design/Interface Design 40

4.12.2 Output Design 41

4.12.3 Processing Design 41

4.12.4 Database Design 41

4.12.5 Network Design 44

4.12.6 Controls and Security Design 45

4.13 Logical Design 49

CHAPTER FIVE 51

SYSTEM IMPLEMENTATION 51

5.1 Hardware acquisition 52

5.2 Software acquisition 52

5.3 User preparation 52

5.4 Choice of Programming Language 53

5.5 Workability of program 53

5.5.1 Program Components 53

5.6 Program Testing 54

5.6.1 Sample Test Data 54

5.7 Site Preparation 54

5.8 Data Presentation 54

5.9 System Installation ss

5.9.1 Hardware Setup ss