BACHELOR OF BUSINESS & INFORMATION TECHNOLOGY

PROJECT: BBIT 3909

KCA SACCO ON LOAN AUTOMATION AND INTERNET BANKING

NAME: KABURU CHRIS KAIMENYI

REG NO: 14/03768

SUPERVISOR: DR.MWENDIA

PROJECT FINAL DOCUMENTATION SUBMITTED IN PARTIAL

FULLFILLMENT OF THE REQUIREMENT AWARD OF A DEGREE
IN
BUSINESS INFORMATION TECHNOLOGY AT KCA UNIVERSITY

DATE: 4th April, 2018

 DECLARATION AND APPROVAL

Declaration by the Student

This project is my original work and has not been presented to any other university for
examination, certificate and diploma or degree award.

Signature…………………………………….. Date…………17/4/2018…………….
CHRIS KAIMENYI KABURU

Approval by the supervisor

This project has been submitted for defense with my approval as the university
supervisor.

Signature………………………………………. Date………………………………….
Dr. S. Mwendia
Lecturer Faculty of Computing and Informatics
KCA University
 TABLE OF CONTENT

Contents
ABSTRACT ................................................................................................................................................... 7
1.0 INTRODUCTION ..................................................................................................................................... 8
1.1 Background ....................................................................................................................................... 8
1.2. Problem Statement .......................................................................................................................... 8
1.3: Proposed Solution ............................................................................................................................ 9
1.4: Objective .......................................................................................................................................... 9
1.4.1 System Objective........................................................................................................................ 9
1.4.2 Research Objective..................................................................................................................... 9
1.5: Significance of the project ............................................................................................................... 9
2.0. LITERATURE REVIEW .......................................................................................................................... 10
Introduction .......................................................................................................................................... 10
2.1.1 Personal Computer (PC) Banking ................................................................................................. 10
2.1.2 Internet Banking .......................................................................................................................... 10
2.1.3 Consumer Behavior towards Internet Banking ........................................................................ 11
2.1.4 Attention .................................................................................................................................. 11
2.1.5 Convenience............................................................................................................................. 11
2.1.6 Accessibility .............................................................................................................................. 11
2.1.7 Usability ................................................................................................................................... 12
2.1.8 Risk ........................................................................................................................................... 12
2.1.9 Security .................................................................................................................................... 12
2.1.10 Cost ........................................................................................................................................ 13
2.2 RESEARCH METHODOLOGY............................................................................................................. 13
2.2.1 Feasibility Study ....................................................................................................................... 13
2.2.2. Data collections methods, ....................................................................................................... 14

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 2.2.3 Target population .................................................................................................................... 14
2.2.4 Sampling ................................................................................................................................. 14
2.2.4 Development Methodology (Model) ....................................................................................... 14
2.2.5 Budget and resources .............................................................................................................. 15
2.2.6 PROJECT SCHEDULE.................................................................................................................. 16
3.0. System Requirement Specification .................................................................................................... 17
3.1 Need and Purpose ........................................................................................................................... 17
3.2 Intended Audience .......................................................................................................................... 17
3.3 Overview of Document ................................................................................................................... 17
3.4 Description ...................................................................................................................................... 18
3.4.1 Features and Functions ............................................................................................................ 18
3.4.2 Users classes and Characteristics ............................................................................................. 18
3.5 Operating Environment................................................................................................................... 18
3.5.1 Hardware ................................................................................................................................. 18
3.5.2 Software ................................................................................................................................... 18
3.6 System Feature ............................................................................................................................... 19
3.6.1 System Feature & Functional Requirement ............................................................................. 19
.................................................................................................................................................................. 21
3.7 Design Constraints .......................................................................................................................... 23
3.7.1 Overview of Data Requirements .............................................................................................. 23
3.7.2 Additional Comments .............................................................................................................. 23
3.8 External Interface Requirement ...................................................................................................... 23
3.8.1 User Interfaces ......................................................................................................................... 23
3.8.2 Hardware Interfaces................................................................................................................. 23
3.8.3 Software Interfaces .................................................................................................................. 24
3.8.4 Communication Interfaces ....................................................................................................... 24
3.9 Other Nonfunctional Requirement ................................................................................................. 24
3.9.1 Reliability ................................................................................................................................. 24
3.9.2 Security Requirement .............................................................................................................. 24
3.9.3 Availability................................................................................................................................ 24
3.10 Other Requirement ....................................................................................................................... 25
4.0 DESIGN ................................................................................................................................................ 26

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 4.1 Purpose and Scope .......................................................................................................................... 26
4.2 System Overview ............................................................................................................................ 26
4.2.1 Level 0 Data flow diagram (DFD) .............................................................................................. 26
4.2.2 Level one Data Flow Diagram ................................................................................................... 27
4.3 System Architecture ........................................................................................................................ 28
4.4 Software Design .............................................................................................................................. 29
4.4 FLOW CHART: PROCESSING LOAN FLOW CHART ........................................................................ 30
4.4.1FLOW CHART: MANAGING CONTRIBUTION .............................................................................. 31
4.4.3 FLOW CHART: MANAGING USERS ............................................................................................ 32
4.4.5 FLOW CHART: MANAGING ACCOUNTS .................................................................................... 34
4.5. File and Database Design ............................................................................................................... 35
4.6. Human-Machine Interface ............................................................................................................. 38
(A) Processing Loans ......................................................................................................................... 38
(B)Managing Contribution ............................................................................................................... 39
(c)Managing User .............................................................................................................................. 40
4.7. System Integrity Controls ............................................................................................................... 40
4.7.1 Internal security ....................................................................................................................... 40
4.7.2 Verification processes .............................................................................................................. 40
4.7.3 Audit Process ........................................................................................................................... 41
5.0 SYSTEM TESTING ................................................................................................................................. 41
5.1 Goals and objectives ....................................................................................................................... 41
5.2 Statement of scope ......................................................................................................................... 41
Functionality ......................................................................................................................................... 41
5.3 Major constraints ............................................................................................................................ 41
5.4 Test Plan.......................................................................................................................................... 42
5.4.1 System to be tested ................................................................................................................. 42
5.4.2 Testing strategy ........................................................................................................................ 42
5.4.2.1 Unit testing ............................................................................................................................ 42
5.4.2.2 Integration testing ..................................................................................................................... 42
5.4.2.3 Validation testing ...................................................................................................................... 42
5.4.2.4 High-order testing ..................................................................................................................... 43
5.4.2.5 Testing resources and staffing .................................................................................................. 43

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 5.4.3 Test work products ...................................................................................................................... 43
5.4.4 Test record keeping .................................................................................................................. 43
5.4.5Testing tools and environment .................................................................................................. 43
5.5 Test schedule................................................................................................................................... 43
5.5.1 Test Procedure ......................................................................................................................... 44
5.4.2 Unit test cases .......................................................................................................................... 44
6.0 IMPLEMENTATION AND MAINTENANCE STRATEGY ........................................................................... 45
6.1 Conversion Plans ............................................................................................................................. 45
6.1.1 File Conversion ............................................................................................................................. 45
6.1.2Train Personnel ............................................................................................................................. 45
6.1.3 Installation ................................................................................................................................... 45
6.2 Training of users.............................................................................................................................. 46
6.3 Support ........................................................................................................................................... 46
6.4 Resistance to change ...................................................................................................................... 46
6.5 Software Maintenance .................................................................................................................... 46
6.6 User Manual .................................................................................................................................... 47
6.7 Implementation schedule table ........................................................................................................ 47
6.8 CONCLUSION................................................................................................................................... 47
6.9 Recommendation ........................................................................................................................ 47
7.0 ACRONYMS ......................................................................................................................................... 48
8.0 USER MANUAL .................................................................................................................................... 48
8.1 Managing the User .......................................................................................................................... 49
8.1.1 STEP1: Index Page .................................................................................................................... 49
8.1.2:STEP2: Registration Page: ........................................................................................................ 49
8.1.3 STEP3. Login Page .................................................................................................................... 50
8.1.4 STEP4: Dashboard .................................................................................................................... 50
8.2 STEP5: Processing Loan: .................................................................................................................. 51
8.3 STEP6: Managing Member Account ............................................................................................... 51
8.7. STEP7: Managing Contribution ...................................................................................................... 52
8.5 Admin Page ..................................................................................................................................... 52
9.0 SOURCE CODE..................................................................................................................................... 53

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 ABSTRACT
My proposed project looks not only to provide an internet banking platform to the
customers/client but also to automate the loan process from both, bankers as well as
customer’s side.
Here customers may fill out loans provided along with the required documents,
thereafter the customer gets a login id password.
The bank may now cross verify customer details and also request extra documents by
sending online alerts to the customer email.
The customer might also bank some money into the system whereby the system will
create a record and also rethink on the amount of money they can grant on a loan.
With this type of project, we will be able to see an increase in people taking loans
without any struggle/hurdle when they request for a loan.

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1.0 INTRODUCTION
1.1 Background
With the globalization trends worldwide, it is difficult for a nation, whether small or big
/developed or undeveloped to remain isolated from what is happening around the world.
Today technology has enveloped every aspect of life, in the changing scenario the
banking sector is not an exception.
The current operations at KCA U SACCO is that of customers going out to fill forms,
waiting on long queues in the banks are over that’s why with the Recent innovation in
the industry has enabled new access methods like the use of ATM, Credit/debit cards.
Banks/ Sacco’s are facing a number of challenges due to stiff competition with service
provider’s case of M-Pesa where by it accessible even to the rural areas and this bring
the need of internet banking to the banking industry.
Due to this continuous advancement the banking industry is set to be revolutionized in
the manner in which they conduct their business.
Internet banking refers to provision of banking and financial services with the help of
computer devices.
The movement from traditional branch banking to now internet banking will cause banks
to come up with strategies to attract more customers and retain the existing one.
(Bradley & Stewart, 2003).
An appropriate banking environment is considered a key pillar as well as an enabler of
economic growth (Koivu, 2002).
Loan is an amount of money given to an individual or an institution on the condition that
it will be paid back over a given period of time with interest. The business in the banking
industry should use or provide efficient loan processing through internet banking in
order to give the company a competitive advantage within the industry a s much as
possible.(Bank System& Technology, 2013).

1.2. Problem Statement

Technological change has been inevitable in the banking industry and more so in the
organization KCA U Sacco.
KCA U Sacco currently they are using excel as their database. Today you can’t bank
through the internet and also get an opportunity to get access to loans through the
Sacco.

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Getting a loan is a very tiring and also a very complicated process in the organization. It
may take weeks even months for loans to be approved and one has to visit the loan
office again and again for document and verification.
Due to the fact above that’s why the loan automation system through the internet
banking will solve this situation.

1.3: Proposed Solution

The goal of this project is therefore to design and create loan automation and internet
banking system that will capture more customers, convert the traditional/previous
system of obtaining and granting loans, track loans given out to allow better workflow
and enhance compliance to condition.

1.4: Objective
The study has the following objective
1.4.1 System Objective
1. To enable Internet banking
2. To reduce the timescale of one accessing a loan

1.4.2 Research Objective

1. To design a system that will help to automate loans and provide internet
banking.
2. To implement the design of the system
3. To test the implemented system.

1.5: Significance of the project

This study will be of value to the stakeholders of KCA U SACCO, since it will help them
increase their customer base.
Through the findings the management will be able to strategize on how to realize
maximum benefit from not only internet banking but also on loan automation system.
The scope of the offered services may include facilities to conduct bank transaction,
getting a loan, to administer accounts and to access customized information.

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2.0. LITERATURE REVIEW
Introduction
This chapter reviews the literature on the effects of internet banking and loan
automation through internet on the performance of KCA U SACCO. Specifically, the
chapter addresses the theoretical framework guiding the study and the empirical
literature.
Within the internet banking adoption context, researchers have indicated various
determinant or drivers that have a positive effect on adoption decisions. For example
usefulness, compatibility, self-efficiency, relative advantage. On the contrary, lack of
user friendly technology, high initial setup cost, high security and privacy risk, lack of
suitable skills and slow rate of adoption have been the major factors that have limited
banks from widespread implementation of financial services over the internet.
In addition to the above, it is identified that there is limited information available either
on the actual adoption or the usage rate for Kenya’s internet banking services and this
might be due to limited number of studies carried out in this field.
Kenya Commercial bank and Stan chartered bank have adopted only the internet
banking leave ng the loan automated system.
Furthermore customers in Kenya are reluctant to adopt internet banking.

2.1.1 Personal Computer (PC) Banking

Pc banking is a service which allows the bank customers to access information about
their account via a proprietary network, usually with the help of a proprietary software.
Once access is gained, the customer can perform a lot of retail banking function. The
increasing awareness of the importance of computer literacy has resulted into increase
in the use of personal computers. This certainly support the growth of PC banking which
virtually enables a branch in the customer’s home or office, and offers 24 hour services,
seven days in a week. It also has the benefit of telephone banking.
Leow, Hock Bee ”New Distribution channel in banking services” Banker’s journal
Malaysia, No 110 June 1999 pg. 48-56.

2.1.2 Internet Banking

The idea of internet banking according to Essinger is, “to give customers access to their
bank account via a website and enable them to enact certain transaction on their
account given compliance with stringent security checks’.
Internet banking which is described as a provision of traditional banking services over
the internet, by its nature offers more convenience and flexibility to customers coupled
with virtually absolute control over their banking”.

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2.1.3 Consumer Behavior towards Internet Banking
Several domains suggest numerous potential influence on customer adoption of internet
banking including theories of consumer behavior adoption of internet banking including
theories of consumer behavior in mass media choice and use.
As a generic theoretical framework a bank must first attract banking consumer attention
to the internet banking services before the consumer will consider internet banking.
However unless the consumer has a high internet accessibility at home/work he/she is
unlikely to consider Internet banking.
The consumer will also need to consider whether the perceived relative advantage of
internet banking compared with other banking form outweigh perceived risk and cost.
Each component of the framework is discussed below:
Chorofas, Dimitris N, Electronic Funds transfer, Butterworth London, UK, 1998.
2.1.4 Attention
It appears that marketing of internet banking has eluded the attention of many
consumers not only in Kenya but to the entire world who may be prospective adopters.
Many non-users mentioned not having known or thought about internet banking
previously, nor have seen it being advertised.
Some participants remarked they did not bank on the internet because they have not
attempted it, believing it to be too complicated suggesting the need for banks to
motivate interest.
2.1.5 Convenience
The convenience is the most important factor in making the decision to bank using the
internet. Some users observed that internet banking is convenience as an extension of
overall internet convenience - that is, they had obtained internet access in the
expectation that many services and other needs fulfilment would be more convenient
through its use.
9Ibid. 10Luarn, P. and Lim, H.H., “Towards an understanding of the behavioral
intention to use mobile banking,” Computers in Human Behaviors, 2004, pp.119.
2.1.6 Accessibility
Access to computers is not the issue, but access to the internet is.
Almost all the customers got computers at home, but not access to the internet at
home." This comment from a non-user is illustrative of non-user comments suggesting
that missing or inadequate internet accessibility is a key influence on the adoption
decision. Some participants with home internet connection utilized service provision with
limited access hours, for cost-based reasons.

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. An emerging issue is restrictive workplace internet practices and policy, with several
non-users relaying stories of limited hours for internet use at work, and the need to
perform work within this timeframe rather than utilizing personal utility applications such
as internet banking.
2.1.7 Usability
"The banks and financial institutions want everyone to go online, but they haven't
actually set up their system so that people can actually use it." (Pew, 2003). 'Ease of
use' - or usability - was frequently cited and found closely linked to individual
perceptions of complexity, web site design and integratability /interoperability.
Interestingly, some non-users had formed views of complexity and site design usability
issues without having sighted internet banking applications.

11Pew, "Convenience is King", Pew Internet and American Life Project, 2003,
2.1.8 Risk
Customers consider internet-based risks in making banking channel choices. For most
of the bank customers, the convenience factor of banking methods was seen as more
important than risk according to a survey conducted among Australian banking
consumers.
Rogers13 finding that more innovative, risk accepting people are 'early adopters' may
explain why users in our sample were less risk averse than non-users
2.1.9 Security
The reliability of internet connections and internet banking applications was a concern.
Bank customers might face incidents such as computers not working, attempting to use
internet banking only to find pages that did not load, and logging on only to read a
message stating that there was a problem and advising the user to try again later.
Confidentiality and privacy issues were often confused, with concerns expressed that
data would be disclosed to others, but with a lack of differentiation between personal
and other confidential information.
(Williamson, Kirsty, 2006), While confidentiality was not part of the lay definition given
them for security, participants viewed the confidentiality issue as a security concern in
accordance with published definitions of information security that include protection of
information confidentiality.
Williamson, Kirsty, and Lichtenstein, Sharman, “Understanding Consumer Adoption of
Internet Banking: An Interpretive Study in the Australian Banking Context”, Journal of
Electronic Commerce Research, January 2006. 15GAO, "Information Security:
Emerging Cybersecurity Issues Threaten Federal Information Systems", Report GAO-
05-231, Report to Congressional Requesters, May 2005.

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2.1.10 Cost
Consumers cited various types of costs which had inhibited their use of internet
banking. Burnham et al.18 identified procedural, financial and relational costs
considered by consumers when switching between various types of service offerings
and such costs were cited by participants.

In the banking industry we cannot limit ourselves to only one country but to the entire
world where by everyone today is a prospective customer.
With all these financial institution in Kenya with a population of 44 million and a total of
42 banks, the competition for customers might be very high.
According to a report released by Cytonn, the sheet aggregate for banks grew by 1.4
percent from 3.6 trillion shillings in June 2015 to 3.7 trillion shilling in September 2017.

2.2 RESEARCH METHODOLOGY

2.2.1 Feasibility Study

Depending on the results of the initial investigation the survey is expanded to a more
detailed feasibility study. The feasibility study is a test of system proposal according to
its workability, impact of the organization, ability to meet needs and effective use of the
resources. It focuses on the major questions:
 How the system does meets the customer needs?
 What resources are available for the users using the said system?
 What are the likely impact of the internet banking and loan automation system
on the organization KCA U SACCO?
 During the feasibility analysis for this project, following primary areas of
interest are to be considered.
 Investigation and gathering ideas about the new system.

Steps involved in the feasibility analysis are:

• Prepare the system flow chart
• Enumerate on the proposed system.

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 • Define and identify characteristics of proposed system.
• Determine and evaluate performance and cost effective of the proposed system.
• Weigh system performance and cost data.
• Prepare and report the final project direct to management?

2.2.2. Data collections methods,

Interviews: It will be conducted on prospective customers.
Observation: By going to the said organization that is KCA U SACCO and looking for
the loopholes within the organization.
2.2.3 Target population
Student
Staff
Lecturers
2.2.4 Sampling
20 people will be interviewed.

Advantages of interview

1. Personal contact allows interview to respond actively to what he said.

2. It is possible to prompt into greater depth.

2.2.4 Development Methodology (Model)

The proposed system will have the spiral waterfall approach that consist of the

• Identification Phase.
• Design
• Construct or Build
• Evaluation and Risk Analysis.

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2.2.5 Budget and resources
The key items include:

ITEMS COST

Computer device/ Mobile phone(Smart Phone) Available

internet 1500

Software(Xampp, Notepad 5++, PHP) Open source

Total

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2.2.6 PROJECT SCHEDULE

The propose system will be carried out in as shown in the table below. The work breakdown is
formulated below.

Task Description Task Subtask Planned Actual Plann

No. No. of No. of Start Start Comp
hrs hrs Date Date Date

Proposal 24hrs 12hrs 19/09 20/09 5/10

Srs 19 12hrs 20/10 29/10 1/11
hrs.
Design 19hrs 30hrs 19/09 2/01/18 3/01/
Test plan 25hrs 13hrs 25/09
Implementation 20hrs 30hrs 30/12 01/01/18 02/02
Plan

Maintenance 10hrs
plan
User manual 10hrs
Final report 5hrs

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3.0. System Requirement Specification
3.1 Need and Purpose
In present times, all major economic transactions have started taking place digitally. The
major trends of modern digital transactions is substantiated by use of database
management. These databases can be accessed by anyone with specific rights, and
perform certain actions on it.
The data update is done almost automatically and is much faster.
Users can, in present days can access their accounts directly without going to a Sacco,
making transfers, transactions and accessing cash directly without standing in long
queues as was prevalent earlier using ATM machines.
On employee-side the data is much more organized, and accessing and performing
actions on user accounts is easier for them. Due to this the Sacco will have better work
efficiency and customer experience improves as well.
The Sacco have been using the excel application as their database and that’s why they
need to adapt to these new technologies that are coming up.

3.2 Intended Audience

This SRS would be used by the following persons:
Sacco Members
They would be using the system to perform the various Sacco functionalities.
Research Students
Customers;
Research students are advised to read all the sections of this document to get an
overall idea of the work-flow and technicalities of the software.
Testers
It can be used as a documentation to know the interfaces.

3.3 Overview of Document

The first section of SRS gives a brief introduction on KCA U Sacco system. This section
also provides the reference information for further study, intended audience and need &
purpose of the product.
The second section provides an overall description of the application, product features
& functions, users and operating environment (hardware, software and external).
The third section is about the specific requirements like external interfaces, performance
Requirements, design constraints and additional comments.
The Appendix section has definitions of some notations used in the document.

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3.4 Description
3.4.1 Features and Functions
Features
KCA U internet Sacco system can be used by Sacco members and/or Customers
Depending on Sacco policy. It can be used by several employees of the Sacco at the
same time with required rights.
It can be accessed using any general web browser with graphical interface.
Our Product consists mainly of the
Employee Work-Space (EWS): It will deal with the internal Sacco functions like new
account registration, withdrawal, deposit, money transfer etc.

EWS requires employee login. It handles following

1. New Customer Registration
2. Transactions
 Detail Updating
 Deposit
i. Cheque
ii. Cash
3. Debit
4. Transfer
5. Account Summary

3.4.2 Users classes and Characteristics

Sacco Front-end Members
The Sacco Members would be the main users of the KCA U Sacco system they may
perform Sacco functions using EWS.
The members would be able to use the system to provide users
With direct access to their account.
3.5 Operating Environment
3.5.1 Hardware
KCA U internet Sacco system requires an entry-level PC for smaller number of sacco
accounts (like, when data is being stored locally.
3.5.2 Software
The KCA U internet Sacco system server can run on any recent version of windows.
 Apache 4.5 or later
 Tomcat 5.6 or later
 PHP 5.6
KCA U internet Sacco system user interface works with any of the following graphical
browsers on any hardware and OS:
1. Firefox 5.0
2. Internet Explorer 7.2
3. Chrome 2.0
4. Opera 2

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3.6 System Feature
3.6.1 System Feature & Functional Requirement
The interface will look like:

I. Login Feature
The member will be required to register in the system, enter in his password so as to get access
into the system.
Functional Requirement: Account Number
Password.
Registration Details

Account
Number

Pin
Number

Welcome
Page

Sacco
Register
Member

Employee Work

Issue
Password

Account
Number

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 II. Loaning Feature

Once the member has logged in the system Answer some few questions they can get access to the loan
with effect from their previous transaction.

Functional Requirement: Pin Number, Answer series of question, Get Loan

Pin
Number

Request
Loan

Ask
questions

Sacco
Answer
member question
Employee Work

Issue Loan

Account
Number

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 III. Monthly Statement

The Member will be getting a displayed monthly statement from the system which will be updated
regularly.

Functional Requirement: Pin Number, Account Number

Pin
Number

Display
Monthly
Statemnet

Sacco Updating
Monthly
member Statement
Employee Work Station

Account
Number

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 IV. Bank Transaction System

The Sacco Members will be doing services like withdrawing money, getting balances of their
account, requesting loan and also getting a copy of their monthly statements from the system.

The system on the other hand will be recording deposit, recording withdraw and also updating
the monthly statement.

Use Case Diagram

Withdraw

Money

Pin
Number

Display
BALANCE

Record
deposit

Sacco

member Record
withdraw
Employee Work Station

Request
loan

Display
Monthly
Statemnet

Account
Number
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Database can store details of up to about a Hundreds of accounts, but that can vary
according to Sacco need, and would depend on data storage capacity of server and not
on database
The response time depends on size of database due to searching process, but still the
response by server will be just the time to search, as it would be accessed from specific
devices in the Sacco and there is no system for accessing it online.
3.7 Design Constraints
Enhancements to the security features might lead to performance overhead.
Central Server should be on-line round the clock.
3.7.1 Overview of Data Requirements
The product is completely data oriented.
In EWS, the employees would input the various details of Customer for updating,
processing or retrieval of data and for new customers, required fields for registration will
be filled.
3.7.2 Additional Comments
This document describes a MySQL and PHP based application, for purpose of
implementing a KCA U Sacco on loan automation and internet Sacco System.

3.8 External Interface Requirement

3.8.1 User Interfaces
The User Interface defines the human-computer interaction of the Sacco system. The
system requires interaction from various users:
• The standard existing users or customers interact with the online interface within the
Sacco System.
• The existing user interacts with the system to allow or authenticate for deposit,
withdrawn, transfer and balance queries
• The new user interacts with the system to register and apply to the Sacco
transactions.
• The Administrator interacts with the system within the master control unit. These
people are given special preference privileges (usually reserved for maintenance crew
or building databases) and manage all type of users
3.8.2 Hardware Interfaces
The software shall interface with have the online connection systems. The software
shall interface with a breaking mechanism in case of emergencies. The transactions
and accesses shall be controlled by the software based on command and graphical
user inputs. The hardware interface is supported by the main control panels (buttons,
keyboard, mouse and communication mediums).

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3.8.3 Software Interfaces
Software interface is supported by the main control panels and operating system in
which hosts the algorithms for calculating distributed travel and wait time information.
Additionally, the algorithms define and export system commands for main control
panels, and communication mediums. For testing purposes the software shall be
capable of interfacing with software simulators on a PC computer using GUI
applications of webpages.

3.8.4 Communication Interfaces

All system interfaces communicate in order to activate ordered requests. The
communication mediums (wired or wireless) are the external interface that
communicates with the control panel of the Sacco System.

This communication allows for failure messages, and requests to be sent and received
by the main system
3.9 Other Nonfunctional Requirement
3.9.1 Reliability
The system is safety critical. If it moves out of normal operation mode, the requirement
to drop to the next lower floor and open its doors is given priority. This emergency
behavior shall not occur without reason.
The system has to be very reliable due to the importance of data and the damages
incorrect or incomplete data can do.

3.9.2 Security Requirement

There shall be no security mechanisms in place to keep unwanted users out of the
system. However, all users of the system shall not be able to perform actions or request
actions from the Sacco system, which will cause harm to any person or damage to the
system or its environment

3.9.3 Availability
When in normal operating conditions, request by a user for a servicer shall be handled
within 1second. Immediate feedback of the systems activities shall be communicated to
the user by link page clicked. At peek system load, individual users at either the server
in the security office, at the links or inside the Sacco system shall not experience any
delay in the service response to their commands longer than 1 second.
:
The system is available 100% for the user and is used 24 hrs. A day and 365 days a
year. The system shall be operational 24 hours a day and 7 days a week.

24
3.10 Other Requirement
A degraded mode of operation should be possible in which each user can operate
independently of central scheduling.
The software shall have power failure and error recognition codes acting as a safety
net, thus keeping the software from performing any major catastrophic functions.

The main considerations when deciding about the output media are:
• The suitability for the device to the particular application
• The need for a hard copy.
• The response time required.
• The location of the users

The software and hardware available. Keeping in view the above description the project
is to have outputs mainly coming under the category of internal outputs. The main
outputs desired according to the requirement specification are: The outputs were
needed to be generated as a hot copy and as well as queries to be viewed on the
screen. Keeping in view these outputs, the format for the output is taken from the
outputs, which are currently being obtained after manual processing. The standard
printer is to be used as output media for hardcopies

25
4.0 DESIGN
This document gives the description of software design of the KCA U loan automation as well as internet
banking system.

4.1 Purpose and Scope

The SDS intends to serve as description of the software design of this development
project. It describes the data, architectural, interface design of the project.
The function feature along with interface details, design constraint and related
consideration such as performance characteristics are also explained.
The project is mainly based on the idea of developing an open source loan automation
and banking system for the KCA Sacco which would replace the existing ways which
they are doing their work. All the operations that are carried out in the Sacco mainly
(like new account registration, deposit, withdrawal, cheque book issue etc.),
would be performed automatically and easily by this system.
This would also enable Sacco to reduce their annual budget on software expenditures
by a greater percentage. A well interfaced GUI would be used for connecting to the
Main database server for updating and retrieving the data of the customers.

4.2 System Overview

The purpose of this document is to write down formally the requirements considered to
be necessary for building the system. This is illustrated using data flow diagrams which
include level zero and level one data flow diagrams.
4.2.1 Level 0 Data flow diagram (DFD)

Validation Info

ACCOINT INFO
KCA SACCO USER
MEMBER
SYSTEM

REPORT Updated Account Info

Fig1

The system will be interacting with the customer where they will be validating and reporting back to the
system. Then it will also be interacting with the user the Sacco employees using the system.

26
 4.2.2 Level one Data Flow Diagram

User 1 Users
Managing Users

Members

2 Managing Details
3
Processing Loan
Managing
Member Accounts

D2 Member Details
D3 Loans
4

Managing
Contribution

D4 Contribution

Fig 2: Level One Diagram

The Figure above shows how the system, user and customer interact together. The system can be able
to process loan, manage contribution and also manage users. It is important to note that the system
can close the account.

27
4.3 System Architecture

The KCA U SACCO System is a client-server based system, which contains the following layers: user
interface, internet/LAN communication, functional service, and data storage layers.

DATABASE

WEB SERVER

INTERNET

Pc Pc Pc

Admin Contribution Officer Loan Officer

Fig4: System Architecture

28
 Data transfers occur in both directions in the system. The user’s input or data request is sent using
either an internet browser. This data then connects to the system either through the internet or, in the
case of an onsite connection, through the LAN connection. In the case of an internet connection, the
data is required to pass through the system’s firewall for security purposes, prior to connecting to the
web server. Local personnel, once validated within the system, will be connected directly to the
application server. In the functional services layer, the data input or request is routed to the
appropriate functional module in accordance with the user’s login and account type. Through these
modules, the users will interact with the database via the SQL server.

4.4 Software Design

KCA SACCO SYSTEM

MEMBER MANAGE
PROCESS LOANS MANAGE USERS
ACCOUNT CONTRIBUTION

DELETE TOP UP
CHECK ADD USER WITHDRAW
APPLY LOAN USER CONTRIBUTI
VALIDATION CONTRIBUTION
ON

Fig No 6: Structured Chart

The chart depicts how the system will be interacting with the three processes that is for processing loan,
managing contribution and managing users.

Pseudocode

Program process loan

Members apply for a loan

If application form validated

Print Loan Granted

Else Application form rejected 29

4.4 FLOW CHART: PROCESSING LOAN FLOW CHART

START

MEMBER APPLIES FOR LOAN

APPLICATION FORM VALIDATED

INFOORMATI NO
ON PROVIDED APLICATION FORM REJECTED
VALID?

YES

ELIGIBILITY CHECK

NO
ELIGIBLE FOR
LOAN? LOAN REJECTED

YES

LOAN GRANTED

Fig no 7. Processing Loan Flowchart

30
It will allow users to get loans if the system approves that they have met standards . If they
haven’t they are denied access to loans.

4.4.1FLOW CHART: MANAGING CONTRIBUTION

START

MEMBER APPLIES FOR CONTRIBUTION

CONTRIBUTION FORM VALIDATED

INFOORMATI NO
ON PROVIDED APLICATION FORM REJECTED
VALID?

YES

ELIGIBILITY CHECK

NO
ELIGIBLE FOR
CONTRIBUTI CONTRIBUTION REJECTED
ON?

YES

TOP UP MEMBERS CAN CONTRIBUTION WITHDRAW

31
 Fig no 8. Managing Contribution Flowchart
It will allow users to get loans if the system approves that they have met standards . If they
haven’t they are denied access to loans.

Pseudocode

Program managing contribution

Members apply for contribution

If application form validated

Members can top up/withdraw

Else Application form rejected

4.4.3 FLOW CHART: MANAGING USERS

Pseudocode

Program managing users

Enter username/password

If login valid

Users can add member/ delete member/modify member

Else denied access

The figure below shows that when users are entering the system they will enter using their login
details, if not valid they will be denied access to the system.

32
 START

ENTER
USERNAME AND
PASSWORD

LOGIN
USER DETAILS

NO
VALID
DENY ACESS

YES

ADD DELETE MODIFY

MEMBER MEMBER MEMBER

NO CLOSE?

YES

EXIT

Fig no 9: Managing users Flowchart

33
4.4.5 FLOW CHART: MANAGING ACCOUNTS

SIGN IN TO ADMIN PORTAL

ENTER
USERNAME AND
PASSWORD

LOGIN
USER DETAILS

NO
VALID
DENY ACESS

YES

ADD DELETE MODIFY

ACCOUNT ACCOUNT ACCOUNT

NO CLOSE?

YES

EXIT

FIG NO 10 Managing account

34
 Pseudocode

Program managing Account

Member sign in admin portal

Enter username/password

If sign in valid

Admin can add account/delete account/modify account

Else access denied

4.5. File and Database Design

Database Schema

Loan

Name Variable Type Length Default Value

#
1 First Name Text 20 null

2 Last Name Text 20 null

3 Account Number Varchar 20 Primary Key

4 Identification No Varchar 20 null

5 Password int 10 null

6 Loan int 10 null

Fig no.11: Loans Database design

35
Users

Name Variable Type Length Default Value

#
1 First Name text 20 null

2 Last Name text 20 null

3 Identification No varchar 20 Unique Id

4 Password int 10 null

Fig no12: users database design

Contribution

Name Variable Type Length Default Value

#
1 First Name text 20 null

2 Last Name text 20 null

3 Identification No varchar 20 Unique Id

4 Password int 10 null

5 Account int 100000 null

FIG NO13: contribution database

36
Account

Name Variable Type Length Default Value

#
1 First Name text 20 null

2 Last Name text 20 null

3 Identification No varchar 20 Unique Id

4 Password int 10 null

FIG NO14: Account database

37
4.6. Human-Machine Interface
(A) Processing Loans

KCA SACCO SYSTEM

PARTNERS FAQS BACK

APPLY FOR A LOAN

GET LOAN

Welcome Mr. Kaburu

Dear Member, Kindly tick the appropriate one!

50,000 30,000

100,000

SUBMIT

Fig No 13: Loan Application Process

The data submitted will be verified via the access control function. Upon submitting the document the
loan will be subjected to a checkup so that it can approved and sent to the member.

38
(B)Managing Contribution
KCA SACCO SYSTEM

PARTNERS FAQS BACK

BANK WITH US

CONTRIBUTION

Welcome Mr. Kaburu

10,000 3,000

5,000

SUBMIT

Fig No 14: Managing Contribution

Upon clicking the Submitting button the moneys remitted will be shown in the system

39
(c)Managing User
KCA SACCO SYSTEM

ACCOUNTS REQUESTS ADVICE

USERS SIGN IN

ID NUMBER/ACCOUNT NUMBER PASSWORD SIGN IN

Welcome Mr. HNO

REPLY TO MEMBERS
REQUEST

ADVICE MEMBERS

MANAGE MEMBERS

Fig no 15: Managing User

Users will be subjected to sign in process before they can continue to so that the links can be active if a
failed log in the user can’t be able to access the system.

4.7. System Integrity Controls

4.7.1 Internal security

For one to access the site one has to have logged into the system so as to restrict access of critical data
items

Audit procedures to meet control, reporting, and retention period requirements for operational and
management reports

4.7.2 Verification processes

The system will be able to add, delete, or update critical data

40
4.7.3 Audit Process
Ability to identify all audit information by user identification, network terminal identification, date, time,
and data accessed or changed.

5.0 SYSTEM TESTING

Testing is the process of evaluating a test project so as to measure, control and verify the quality.
The main aim is to generate a high test plan document that will help identify the software item to
be tested, the test environment, the test case design and test measurement techniques to be used.

5.1 Goals and objectives

The goals and objectives of testing this system include:

1. Ensure that the system being tested meets the design and specification requirements and
standards.
2. Allow for the development of a system that is acceptable to the end users, since they are
the major users of the system.
3. Establish resources required to perform the testing process.
4. To identify errors, faults and failures that may be present in the system and fix them in
the process.
5. To come up with a reference tool for validating the system.
6. To make ensure that the system produces the desired output.

5.2 Statement of scope

To determine and provide guidelines on how the old system will be validated to ensure that it
meets the specified requirements. The process will try to eliminate any undetected problem that
may have been unidentified during the design; development or implementation phases and
ensure that the system is fully functional without any errors.

Functionality
1. Test availability of the system to the members.
2. Test whether the admin can login to the portal securely.
3. Test when payment occurs if the details are added to database.
4. Test concurrency if the system can operate many functions all together.

5.3 Major constraints

1. Time constraints. The time needed to complete the system is limited therefore not all the
required tests will be done in the correct time and this may result to some errors.

41
2. Some errors were may be untraceable. Not all the required tests may be accomplished
therefore the system will contain few problems with it operations.

5.4 Test Plan

This section describes the overall testing strategy and the project management issues that are
required to properly execute effective tests.

5.4.1 System to be tested

Name of the system: KCA SACCO SYSTEM.

5.4.2 Testing strategy

The testing strategy is described below:-

5.4.2.1 Unit testing

The units to be tested will be selected based on functionality starting with the one that performs
the least important function to the most complicated ones.
Components to be tested:
1. Login.
2: Interface used.
3: Coding used in the system, and whether they output the desired output.
4: Security of the system.
5.4.2.2 Integration testing
The strategy is the Big-Bang integration, is an integration testing strategy wherein all units are
linked at once, resulting to a complete system. The integration of the database and the interfaces
all at once then check for errors as you run the system fixing any resulting error in the process
5.4.2.3 Validation testing

This test is done to ensure correctness of the system, its input, content and the output being
outputted whether they are all correct and meet the conditions given. It ensures that all integrated
unit programs conform to each other without conflicting and form one close to perfect system.
Security will also be an issue when it comes to validation. To enforce system security a user
name and strong password is required for to be able to gain access to the system.

42
5.4.2.4 High-order testing

A number of tests will be carried out in the new system to verify its functionality and to see how
it will function under high stress levels. This is achieved by a number of tests such as unit
testing, integration testing, functional testing and acceptance testing. Overall testing of the
system will be done after the end of the development process of the entire project.

5.4.2.5 Testing resources and staffing

Resource: testing software and formulas for example testing matrix;

Staff: System developers, members for acceptance testing

5.4.3 Test work products

Inputting pay and pay amounts by the developers and the analyzing first report.

Design Verification is to be performed during the development or approval stages.

5.4.4 Test record keeping

Crystal reports will be used to evaluate immediate test results. After the results have been
evaluated, they will be submitted to XAMPP database for storage. The test result will be
recorded as a word document in a hard disk or compact disk storage device for future reference.

5.4.5Testing tools and environment

Microsoft Visual basic and Microsoft Access will be used as the testing tools as well as testing
environment.

5.5 Test schedule

Type of test Test data Tested area Expected output

Unit testing Interfaces How interactive is the Should be self-explanatory and
system? easy to navigate.
Staff no, name Text fields Should accept both numbers
and characters.
Password Input should be hidden.
Username and Login security Access is allowed only when
password correct username and password
combination are keyed in.
Integration Modules View Reports Should allow admin to view
stored details about the Sacco
system

43
 View report detail The user should just view
detail report stored in the
database
Validation System interfaces Should be easy to understand
by the user
Modules Should be easy to use by the
user
Implementation Should be easy to implement
by the user
5.5.1 Test Procedure

This section describes as detailed test procedure including test tactics and test cases for the
software.

5.4.2 Unit test cases

Test Scenario Test steps Test Data Expected Actual results Pass/fai
Results l
Check system 1. Go to the computer User ID=1 User As expected Pass
login with valid and open the system. should
Data Password= login in to
2.enter user ID Allow1 the system.

3.Enter Password

4.Click Submit
Check login with 1. Go to the computer User ID=1 Invalid As Expected pass
invalid data and open the system. username/p
assword.
2.Enter User ID

3.Enter Password

4.Click Login

Adding records Open the system on Enter details The admin As Expected Pass
to database webpage of the Sacco into the should fill
columns. the details
with
correct info

44
6.0 IMPLEMENTATION AND MAINTENANCE STRATEGY
The system will be implemented so as to replace a manual system. The objective therefore is to
put the system into operation

6.1 Conversion Plans

It is important to note that the parties involved here are
 Members
 User

6.1.1 File Conversion

It will involve capturing data and creating computerized files from existing files.

6.1.2Train Personnel
The members will be trained through user manual
Screen menu

6.1.3 Installation
The approach to be used is the parallel installation whereby the will be using the old and the
new system for a period of time

Fig1: parallel conversion

45
The main activities will be:-

• Programming
• Testing data preparation
• Data collection
• Training of users

6.2 Training of users

The methodology to be used is user –led/ instructor led
Other forms will include the user manual

6.3 Support
The system will automate support but what is to be noted is that the system will provide a
recovery and backup in case of a disaster.

6.4 Resistance to change

It is important to note that this system does not have an effect on the employee status, job
satisfaction and therefore they don’t need to get worried.
However to the members it is important for them to know that this system will help to improve
the Sacco by making the process of getting access to loan easy and faster

6.5 Software Maintenance

This system is crucial and needs to be maintained on regular basis. Main activities to be done
here is
 Correcting code and design errors
 Updating documentation/test data
 Upgrading user support
 To keep with the changing user environment

The above activities are corrective maintenance whereby one will be repairing performance
failures.
The changes will be made because of previous uncorrected problem.

46
6.6 User Manual
The system has a user manual written clearly how the system works and in case of a disaster it
shows way to go about.

6.7 Implementation schedule table

Activity
Installation of hardware and
operating system
Training of end users
Duration Task carried out
8hours. Both hardware and software
are installed.
1 business week. This includes training:
shooting tutorials.
Training: the website
administrator

File conversation 5 days. Application-those activities

System change over
concerned with the transfer of
aspects of the old system to
the new system.
15 days. Shouldn’t be too drastic.
Putting the new system into
use.

6.8 CONCLUSION.
This is to ensure that the system meets the right required specification needed to keep it running
and working.
Testing the system will help the developer and the team know how exactly the system works and
if it has any problems.
6.9 Recommendation
This system is workable and I recommend it to the SACCO since I believe it is beneficial to the
organization.

47
7.0 ACRONYMS
GUI- Graphical User Interface

MYSQL-Structured Query Language

PHP- Hypertext Pre Processor

XAMPP- X Apache MYSQL PHP

PC- Personal Computer

RAM – Random access Memory

ICT- Information Communication Technology

VER- Version

8.0 USER MANUAL

The aim of this guide is to help users operate the software productivity with minimum reading. It
will also be used to guide the users while using the system. It is an important tool in trouble
shooting when working with the system and when installing the program.
Software and hardware requirements
This program will run if the computer is connected to the Internet. The system will require a
personal computer with and connected printer. The computer must meet the following hardware
requirements for effective running:
The system requires the following in order to function at peak performance:
1. 40 GB disk space on a dedicated computer/server.
2. 4GHz or higher processor
3. 512 MB or more RAM

4. Printer

5. Internet

48
8.1 Managing the User
8.1.1 STEP1: Index Page
This is the index page where by one will login as a member or the staff

8.1.2:STEP2: Registration Page:

A member will be required to register before he/she can log in to the system.

49
8.1.3 STEP3. Login Page
Thereafter he/she can continue to login to the system

8.1.4 STEP4: Dashboard

This is the environment that the member will be working on:

50
8.2 STEP5: Processing Loan:

8.3 STEP6: Managing Member Account

Reading statement after the member has loan he/she can see the loan that they have acquired:

51
8.7. STEP7: Managing Contribution

8.5 Admin Page

52
9.0 SOURCE CODE
<?php include('server.php') ?>

<!DOCTYPE html>

<html>

<head>

<title>Registration system PHP and MySQL</title>

<link rel="stylesheet" type="text/css" href="style.css">

</head>

<body>

<div class="header">

<h2>Login</h2>

</div>

<form method="post" action="login.php">

<?php include('errors.php'); ?>

<div class="input-group">

<label>Email</label>

<input type="text" name="email" >

</div>

<div class="input-group">

<label>Password</label>

<input type="password" name="password">

</div>

<div class="input-group">

<button type="submit" class="btn" name="login_user">Login</button>

</div>

53
 <p>

Not yet a member? <a href="register.php">Sign up</a>

</p>

</form>

</body>

</html>

<?php include('server.php') ?>

<!DOCTYPE html>

<html>

<head>

<title>Registration system PHP and MySQL</title>

<link rel="stylesheet" type="text/css" href="style.css">

</head>

<body>

<div class="header">

<h2>Welcome to New Member Registration</h2>

</div>

<form method="post" action="register.php">

<?php include('errors.php'); ?>

<div class="input-group">

<label>First Name</label>

<input type="text" name="firstname" value="<?php echo $firstname; ?>">

</div>

<div class="input-group">

<label>Last Name</label>

<input type="text" name="lastname" value="<?php echo $lastname; ?>">

</div>

54
 <div class="input-group">

<label>Email</label>

<input type="email" name="email" value="<?php echo $email; ?>">

</div>

<div class="input-group">

<label>Password</label>

<input type="password" name="password_1">

</div>

<div class="input-group">

<label>Confirm password</label>

<input type="password" name="password_2">

</div>

<div class="input-group">

<button type="submit" class="btn" name="reg_user">Register</button>

</div>

<p>

Already a member? <a href="login.php">Sign in</a>

</p>

</form>

</body>

</html>

<?php session_start();

//echo "Welcome " .$_SESSION['firstname']." ".$_SESSION['lastname'];

?>

<!DOCTYPE html>

<html>

<head>

55
 <title>Get Loan</title>

<link rel="stylesheet" type="text/css" href="style.css">

</head>

<body>

<div class="header">

<h2>Get Loan</h2>

</div>

<div id="navbar-core"><font face="Comic Sans MS">

<a
href="contributions.php"style="text-decoration:none;" id="navbar-item">Contribution</a>

<a
href="process_statement.php"style="text-decoration:none;" id="navbar-item">statement</a>

<a
href="index.php?logout='1'"style="text-decoration:none;" id="navbar-item">logout</a></font>

</div>

<form method = "post" action = "loan_application_process.php">

<table>

<tr>

<td>First Name:</td>

<td><input type = "text" name = "firstname" required value=<?php echo

$_SESSION['firstname'];?> ></td>

</tr>

<tr>

<td>Last Name:</td>

<td><input type = "text" name = "lastname" required value=<?php echo

$_SESSION['lastname'];?>></td>

</tr>

56
 <tr>

<td>Email:</td>

<td><input type = "email" name = "email" required value=<?php echo

$_SESSION['email'];?>></td>

</tr>

<tr>

<td>Amount:</td>

<td><input type = "text" name = "amount" required placeholder="Enter Amount" ></td>

</tr>

<tr>

<td>Purpose of the Loan:</td>

<td><input type = "text" name = "purpose" required placeholder="Enter purpose"></td>

</tr>

<tr>

<td>Please key in todays Date:</td>

<td><input type = "date" name = "CreateDate" required ></td>

</tr>

<tr>

<td>Enter any extension number you want:</td>

<td><input type = "text" name = "PhoneNo" required placeholder="Enter the phone

number"></td>

</tr>

<tr>

<td><input type="Submit" value="Submit">

57
 </tr>

</table>

</div>

</div>

</form>

</center><br><br>

<center> <div id="navbar-core"><font face="Comic Sans MS">

<a href="readloan.php"style="text-decoration:none;" id="navbar-item">READ Loan</a>

</div></center>

</body>

</html>

58