SOFTWARE ENGINEERING ”Automated Lending System” Prepared by: Deladia, Irish D. Background ENTREPRENEUR ALUMNI DEVELOPMENT COOPERATIVE (EADCOOP) was organized on August 30, 1995 by 18 graduates and 2 Entrepreneurship teachers from Bicol University College of Arts and Letter. The cooperative was created to serve as mother unit and link for financial assistance of the members thru their share capital and inter-lending scheme from other sources.
Through this cooperative, members will have an adequate working capital for their on going business, increase their income for the family, and generate more employment for other people in the locality where their businesses are established. Thus promoting thrift, savings, capital formation and social reforms. As of December 31, 2009, the cooperative has a total membership of 1,893 both regular and associates. The cooperative was steadily growing its consumer and commercial loan portfolios.
This growth was attributed to the very good implementation of micro finance operation; however regulatory environment was also growing. The number and complexity of regulations was mounting and the cooperative did not want compliance requirements to slow down its lending business. These difficulties paved the way for the creation of new system, by using automated transaction solutions for lending. The system requires documents according to loan type and other variables and allows the bank to build standard transaction templates preset with its fees, charges, increase methods, and amortization methods.
The Present System 1. When a client wants to make loan, member of the staff will be identifying the prospective borrower and a Client Profile Index form to be fill up which records basic information such as name, address and other surveys. And another form which is the Application for Loan which records the loan amount applied 2. The form will be submitted to the management for process of loan. 3. The file of loan transactions is now ready for computer processing. One of the important information processing jobs that need to be done is the updating at the loan files and the preparation of the loan analysis reports. . The sorted loan transactions are used by loan processing to update a loan master file to reflect the new loans. A new loan master file is created. 5. Loan processing also produces a loan analysis file. This file contains historical data on previous loans, as well as new loan data. The computer uses this file and a loan analysis program to perform loan analysis. Loan analysis reports are produce that tell management the trends in sales performance of loans. The Proposed System 1. When a customer wishes to make a loan, the employee will ask first customers data given the application form.
The customer information form contains name, address, amount to be lend and terms of payment. It will be submitted to the employee to be processed. 2. A copy of transaction prints out a loan receipt for the customer that contains customer data and serves as a record of the transaction. 3. Errors in data entry may cause an error indication The Clerk must follow various error procedures to correct such errors. 4. The information transmits loan transaction data to the company mainframe computer. This immediately updates the loan records in the company.
Flowchart of Present Loan Transactions Processing System Flowchart of Proposed Loan Transactions Processing System Figure 1. 1 A Context diagram of a Loan Processing System Figure 1. 1 Illustrates the highest level of data flow diagram called context diagram or level-0 DFD FIGURE 1. 3 This level-1 data flow diagram illustrates the design of a proposed Loan Processing System that uses automated transaction processing and database updates Figure 1. 2 Using data flow diagrams. This level-1 DFD graphically illustrates the analysis of a Loan Processing System ———————- Start Fill up of loan application form Fill up of loan application form Process of Loan Application Approval of Loan End No Yes Loan Utilization Check Release of Loan Payment of Loan Finish Start Application Form Validation of Form Not valid End Valid Loan Receipt Update Database Updated Database Information Submitted to the Company Finish Finish Client Employee 0 Loan Processing System Client 1. 0 Capture and Correct Loan Transaction 2. 0 Edit Loan Transaction Company’s Loan Database Loan Transaction
Error Indication 3. 0 Update Loan Database 4. 0 Perform Loan Analysis Clear Transaction Loan Update Loan Record Loan Records Selected Loan Data Loan Results Client’s Data Employee Receipt d d1 Client Employee 3. 0 Loan Analysis Loan Transaction file Loan Transaction file 2. 0 Process Loan Transaction Old Loan Master File New Loan Master File Loan Application 1. 0 Capture Loan Transaction Receipt Loan Transaction Loan Transaction Loan Master Records Selected Loan Data Updated Loan Master Record Loan Results Selected Loan Data d1 d2 d3 d4
