CBZ Smart lending system.

Alfred Nzombe
[MIG 364]
BMIS 2.2
 CBZ Smart lending system.

By

Alfred Nzombe
anzombe@caaz.co.zw [+263773232567]

Submitted in partial fulfilment of the requirement for the

BSc. Honours Degree in Management Information Systems
Department of Computer Science and Information Systems in the
Faculty of Science and Technology at the
Midlands State University
Gweru
Zimbabwe
April 2018

Supervisor: Mrs. L. Kaseke

ABSTRACT

The manual process of obtaining and granting loans is stressful, inconvenient and
time wasting for lender and borrower as well. There is a need to automate the loan
processing procedure as much as possible. The goal of this project is, therefore, to
design and create loan automation application software that can capture the
required loan data elements only once, keep such information secure throughout the
loan process, convert the previous hand to hand system of obtaining and granting
loans into a computerized less stressful form, keep track of individuals in the
process, monitor and track loans given out to allow better flow and enhance
compliance to conditions, ensure security of information reduce lending life cycle
times, apply appropriate interest to loans and notify the concerned individual on
the progress of their loan. The existing system is a manual system which doesn’t
maintain details with proper security and takes lot of time in verification of the
documents. It is not a user friendly interface. It does allow users to check their
profile and will not provide proper information about the loan process. It takes lot
of time to the bank authority to manage customer information. It required more
paper work. The proposed system provides an easy way to users in applying loan.
Users can apply for a loan from anywhere and at any time and get notifications.
Users can view their profile details and can view all the details of the loan. System
provides download option to download different type of loan form in MS word
document. Using this system bank authority can find users details easily. This
system is a paperless system by which workload is reduced.
DECLARATION

I, Alfred Nzombe, hereby declare that I am the sole author of this project. I
authorize Trust Academy and the Midlands State University to lend this dissertation
to other institutions or individuals for the purpose of scholarly research.

Signature _________________________________ Date _____________________________

APPROVAL
This project entitled “…CBZ Smart lending system…” by Alfred Nzombe meets the
regulations governing the award of the BSc honors degree in Management
Information Systems of Trust Academy in collaboration with the Midlands State
University , and is approved for its contribution to knowledge and literal
presentation.

Supervisor:………………………………………………………….

Date:…………………………………………………………………...
ACKNOWLEDGEMENTS
My profound and most sincere gratitude goes to the Almighty God who gave me the
grace and strength through his only begotten son Jesus Christ during my project work. I
would also want to thank my caring parents Mr and Mrs Nzombe for their support.
Special mention goes to Mrs L Kaseke (Project Supervisor) for pushing me, assisting and
mentoring me to successfully complete this project irrespective of her busy schedule,
may God bless her. This task would be incomplete if I don’t acknowledge my wife
Rosemary Shoniwa, my two sons Kudzwaiishe Jayden and Mufarowashe Abisha
Nzombe; ICT Head of Department at Trust Academy, Mrs P Chamanga and also my
lecturers: Mr E. Dzindikwa, Mr J. Makota, Mr T. Mhlanganiso and Mr J. Mapfumo. I
also appreciate the love and support of my cordial friends and fellow classmates.

I would also like to express my profound gratitude to my ever encouraging fellow work
colleagues all from Civil Aviation Authority of Zimbabwe (CAAZ) RFF&EMS
Department for their input in coming up with the system, the documentation, the tips, the
facts and the requirements needed to complete this task.

Finally my gratitude goes to all those who have directly or indirectly contributed to my
success. May the Almighty bless them all.
 TABLE OF CONTENTS
ABSTRACT...........................................................................................................................................3

DECLARATION...................................................................................................................................4

APPROVAL...........................................................................................................................................5

ACKNOWLEDGEMENTS..................................................................................................................6

TABLE OF CONTENTS......................................................................................................................7

CHAPTER ONE: INTRODUCTION................................................................................................16

1.1 Introduction...................................................................................................................................16

1.2 Background of the study...............................................................................................................17

1.2.1Background of the organization.................................................................................................17

1.2.2Organizational Structure............................................................................................................18

1.2.3Vision............................................................................................................................................19

1.2.4Mission Statement........................................................................................................................19

1.2.5 Core Values.................................................................................................................................19

1.3 Problem Statement........................................................................................................................21

1.4 Project Aim....................................................................................................................................21

1.5 Objectives.......................................................................................................................................21

1.6 Methods and Instruments.............................................................................................................21

1.7 Project Justification.......................................................................................................................21

1.7.1 Scope of the Study.......................................................................................................................22

1.8 Chapter Summary.........................................................................................................................22

CHAPTER 2: PLANNING PHASE...................................................................................................23

2.1 Introduction...................................................................................................................................23

2.3 Analysis of Feasibility....................................................................................................................24

2.3.1 Technical Feasibility...................................................................................................................25

2.3.1.1 Technological Trends..............................................................................................................25

2.3.1.2 Technical Expertise.................................................................................................................25

2.3.1.3 Hardware Specification...........................................................................................................25

2.3.1.4 Overview of technical feasibility.............................................................................................28

2.3.2 Economic Feasibility...................................................................................................................28

2.3.2.1 Cost/Benefit Analysis...............................................................................................................28

2.3.2.2 Return on Investment..............................................................................................................30

2.3.2.3 Payback Period........................................................................................................................30

2.3.2.4 Overview of economic feasibility............................................................................................31

2.3.3 Operational Feasibility...............................................................................................................31

2.3.4 Social Feasibility.........................................................................................................................32

2.4 Risk Analysis..................................................................................................................................32

2.5 Project Plan....................................................................................................................................33

2.5.1 Work Plan...................................................................................................................................33

2.6.3 Gantt Chart.................................................................................................................................34

2.6.4 Conclusion...................................................................................................................................35

CHAPTER THREE: ANALYSIS PHASE........................................................................................38

3.1 Introduction...................................................................................................................................38

3.2 Data Gathering Techniques..........................................................................................................38

3.3 Analysis of the existing system......................................................................................................41

3.3.1 General description of the existing system................................................................................41

3.3.2 Inputs...........................................................................................................................................41

3.3.3 Processes......................................................................................................................................42

3.3.4 Outputs........................................................................................................................................42
3.3.5 Activity Diagram of the existing system....................................................................................42

3.3.6 DFD of existing system...............................................................................................................43

3.4 Weakness of the current system...................................................................................................47

3.5 Evaluation of alternatives.............................................................................................................47

3.5.1 Outsourcing.................................................................................................................................47

3.5.2 Improvement of the current system..........................................................................................48

3.5.3 Development................................................................................................................................48

3.7.4 The selected alternative..............................................................................................................49

3.6 Requirements Analysis..................................................................................................................49

3.6.1 Functional requirements............................................................................................................50

3.6.1.1 Use Case Diagram....................................................................................................................50

3.6.2 Non-functional requirements.....................................................................................................53

3.7 Summary........................................................................................................................................53

CHAPTER FOUR: DESIGN PHASE................................................................................................54

4.1 Introduction...................................................................................................................................54

4.2 System Design................................................................................................................................54

4.2.1 Inputs, Processes and Outputs...................................................................................................54

4.2.2 Data Flow Diagrams...................................................................................................................55

4.3 Architecture Design.......................................................................................................................57

4.3.1 Physical Design...........................................................................................................................57

4.3.2 Network Diagram.......................................................................................................................57

4.4 User Interface Design....................................................................................................................58

4.4.1 Menu Design................................................................................................................................58

4.4.2 Input Design................................................................................................................................58

4.5.3 Process Design.............................................................................................................................59

4.5.4 Output Design.............................................................................................................................60

4.5 Process Design................................................................................................................................61

4.5.1 Flow Chart..................................................................................................................................61

4.6 Program Design.............................................................................................................................62

4.6.1 Sequence diagram.......................................................................................................................62

4.6.2 Class Diagram.............................................................................................................................63

4.6.3 Pseudocode..................................................................................................................................64

4.7 Database Design.............................................................................................................................66

4.7.1 Data modeling.............................................................................................................................66

4.7.2 Database architecture design.....................................................................................................68

4.7.3 Data dictionary and table design...............................................................................................68

4.7.4 Entity relationship diagram.......................................................................................................70

4.8 Security Design..............................................................................................................................72

4.9 Backup Design...............................................................................................................................72

4.11 Deployment Design......................................................................................................................76

4.11.1 Deployment diagram................................................................................................................76

4.12 Summary......................................................................................................................................77

CHAPTER 5: IMPLEMENTATION.................................................................................................79

5.1 Introduction...................................................................................................................................79

5.2 System Specifications.....................................................................................................................79

5.2.1 Software Specifications...............................................................................................................79

5.2.2 Hardware Specifications............................................................................................................79

5.3 System Testing...............................................................................................................................80

5.3.1 Testing Results............................................................................................................................84

5.3.2 Verification and verification......................................................................................................85

5.4 Installation and Conversion Plan.................................................................................................87

5.4.1 System training...........................................................................................................................88

5.4.2 Training schedules/plans............................................................................................................88

5.4.3 System installation and User Acceptance..................................................................................88

5.4.4 Conversion Methods...................................................................................................................89

5.5 Maintenance...................................................................................................................................91

5.6 Performance Analysis....................................................................................................................92

5.7 Recommendations for future developments................................................................................92

5.8 Results............................................................................................................................................93

5.8.1 Findings.......................................................................................................................................93

5.8.2 Goal Achieved.............................................................................................................................94

5.8.3 Conclusion...................................................................................................................................94

Appendices...........................................................................................................................................97

Appendix-A..........................................................................................................................................97

Appendix–B........................................................................................................................................100

Appendix-C........................................................................................................................................101

CUSTOMER Questionnaire:............................................................................................................102

Bank employees Questionnaire:.......................................................................................................104

Appendix-D........................................................................................................................................107
LIST OF TABLES

Table 2.1 Database Server:...........................................................................................................27

Table 2.2 Client Computer Specification:......................................................................................27

Table 2.3 Network Specifications:.................................................................................................28

Table 2.4 Software specifications:................................................................................................28

Table 2.5: Cost Benefit Analysis....................................................................................................30

Table 2.6: Computation of payback period...................................................................................31

Table 2.7 Activity Timetable.........................................................................................................36

Table 2.8: Gantt chart...................................................................................................................37

Table 3.1 Data Flow Diagram symbols..........................................................................................45

Table 3.2 Use case symbols..........................................................................................................51

Table 4.1 Table: loanapp...............................................................................................................69

Table 4.2 Table: users...................................................................................................................69

Table 4.3 Table: roles....................................................................................................................70

Table 4.4 Test case design sample................................................................................................75

LIST OF FIGURES

Fig 1.1: Organisational chart for CBZ Holdings..............................................................................20

Fig 3.1 Activity Diagram................................................................................................................44

Fig 3.2 Context diagram................................................................................................................45

Fig 3.3 Level 1 DFD of Current System..........................................................................................47

Fig. 4.4 Network diagram..............................................................................................................57

Fig 4.5 Menu screen.....................................................................................................................58

Fig 4.6 Login screen......................................................................................................................58

Fig 4.7 Change password screen...................................................................................................58

Fig 4.8 Loan Application screen....................................................................................................59

Fig 4.9 Rate maintenance screen..................................................................................................60

Fig 4.10 Loan maintenance report................................................................................................60

Fig 4.11 Registration status report................................................................................................60

Fig 4.12 Flowchart for the proposed system................................................................................61

Fig 4.14 Class Diagram..................................................................................................................63

Fig 4.15 Levels of abstraction.......................................................................................................68

Fig 4.17 Example of maintenance plan for the database backup.................................................73

Fig 4.18 Deployment diagram.......................................................................................................77

Figure 5.1 showing the testing process to be used.......................................................................79

Figure 5.2 showing the defect testing process..............................................................................82

Fig 5.3 username-password validation.........................................................................................84

Fig 5.4 first name cannot be null..................................................................................................84

Fig 5.5 Null Date of Birth validation..............................................................................................85

Fig 5.6 Loan Class missing validation............................................................................................85

Fig 5.7 approving with no selection chosen..................................................................................86

Figure 5.8 showing direct changeover..........................................................................................87

Figure 5.9 showing pilot changeover............................................................................................88

Figure 5.10 showing phased changeover strategy........................................................................89

Figure 5.11 showing parallel changeover.....................................................................................89

CHAPTER ONE: INTRODUCTION
1.1 Introduction
Getting a loan is a very tiring and complicated process here in Zimbabwe. It may take
weeks even months for loans to get approved and people have to visit the banks’ loan
office again and again for documentation and verification. The ongoing competition in
the financial services sector and the entrance of more players especially the micro-finance
institutions has meant that banks need to continue being innovative. It is with this in mind
that a smart lending system has become necessary. The system automates the loan
process from both bankers as well as customers’ side. The users of the smart lending
system are customers or applicants and banks. The customers can see various categories
of loan and the rate of interest is displayed too which facilitates customer in selecting the
best policy according to their ease. The required documents or eligibility criteria are also
mentioned which is responsible for fair policies between customers and banks. The
customer provides documents and check status against its submitted application.
The banks grant loan on the pre-defined policies and set interest rates and have authority
to accept or reject any individual application without mentioning or mentioning the
rejection reason. The banks have authority to verify customer documents, they can also
ask for additional or any missing documents by generating alerts.

The customer who is probably the client fills the basic enquiry form that is provided in
the proposed project website. The user (customer or applicant) sets the user name and
password. The filled form is forwarded to and successfully received at bank server. The
server administrators check the application and analyze it. He/she has authority to accept
or reject the application. So s/he analyze and decides whether the application should be
considered or not.  In case s/he approved and forwards the application for further
processing, s/he notifies the customer to go for next step. At this point the customer gets
the approval of stage one. In second stage the customer uploaded his documents (scanned
documents) to the website through login (by the username and password s/he set earlier).
The documents are uploaded and successfully submitted and customer gets the
submission report. The submitted documents are cross verified according to certain set
polices set by administrators. After analyzing documents decision is sent to the customer.
The reply is sent in the form of a message.
It is the need for a computerized system to aid in processing of loan and mortgages
requests that necessitated this study on development of a smart lending system for
Commercial Bank of Zimbabwe (CBZ) customers.

1.2 Background of the study

CBZ Bank has over 60 branches countrywide which is a good coverage but it doesn’t
cover every town, growth point or business centre. In all places there are clients who
bank with CBZ Bank but are not always in a position to physically visit the bank. Whilst
the integrated mobile app and website has provided some services required by customers,
the loan and mortgage application and management side has not yet been incorporated in
these technologies. The current process involves the customer having to physically visit
the branch with the necessary documentation to apply and then wait for feedback. Once
the feedback is positive then the loan or mortgage is processed and the customer will get
the money after sometime. This obviously results in a delay which does not benefit the
customer. To shorten this process and come up with something which benefits customers
was the motivation behind this study. To gain competitive advantage in the banking
industry automation of processes is of paramount importance. Although technology is
already used in loan and mortgage processing systems, there is always room for
improvement especially since the whole process is not automated. This system will
process loans and mortgages. These loans are commonly referred to as personal loans. Its
success will then enable integration of all other services to be automated.

1.2.1 Background of the organization

CBZ was established in 1980 as the Bank of Credit and Commerce Zimbabwe (BCCZ)
which was a joint venture between BCCI and the Government of Zimbabwe. Commercial
Bank of Zimbabwe was founded in 1991 when BCCZ was saved by Government of
Zimbabwe from total collapse. This was done through the GOZ acquiring total
shareholding. CBZ Holdings was established in 2004 with the bank being renamed CBZ
Bank becoming a subsidiary. Before changing name to CBZ Bank it was once called
Jewel Bank a name it rebranded to after Commercial Bank of Zimbabwe. CBZ Bank has
 over the years grown to become the largest bank in the country both in terms of deposits
and balance sheet. Over the years CBZ Holdings has acquired a number of entities which
include Datvest (Asset management concern), Beverly Building Society offering
mortgages, and Optimal Insurance which is now CBZ Insurance; this is a short term
insurance company. The company also has a life company called CBZ Life which
primarily offers long term insurance and CBZ Risk Advisory which offers risk advisory
services.

1.2.2 Organizational Structure

CBZ Holdings

Banking
Group Chief
Legal
Executive Officer
operations

MD Datvest MD CBZ Insurance MD CBZ

Operations Bank

CBZ
DATVEST CBZ BANK Properties

CBZ Insurance CBZ Risk

CBZ Life
Advisory

Agribusiness Credit Micro-Finance

Human Risk Information Compliance

Resources Technology Retail
Banking
Finance
Corporate & Investment Banking
Treasury
Procurement & Logistics

Investment Operations
Banking
Audit
Fig 1.1: Organisational chart for CBZ Holdings.

1.2.3 Vision
Vision of CBZ Holdings
 To be the preferred provider of financial solutions in Zimbabwe with a global reach.
Vision of CBZ Bank
To be the bank of choice in Zimbabwe.
1.2.4 Mission Statement
Mission Statement of CBZ Holdings
To bring convenience to our clients through innovation, efficient service delivery,
competence and flexibility whilst adhering to principles of integrity, transparency and
fairness.
Mission Statement of CBZ Bank
To be a progressive, strong bank geared to satisfy the diverse needs of our customers
through innovative financial solutions. This is achieved through efficient service delivery,
competency and flexibility whilst adhering to principles of integrity, transparency and
fairness.

1.2.5 Core Values

 Integrity
 Customer Focus
 Innovation
 Staff focus
 Teamwork
 Corporate Citizenship
Today, customers are more knowledgeable and more demanding than ever. They are
aware of all the options available to them and, if a lending organization is not able to
process a loan or mortgage application within a desirable time frame, they are quick to
switch to some other organization that can very well do so. Banks and financial
institutions need to realize that to maintain loyalty customers demand convenience apart
from attractive interest rates.
Often banks are challenged by the manual processing of loans, creating spiraling labor
costs and backlogs of files preventing loans from closing on schedule. This translates into
loss of business to competition. For this reason, banks and financial institutions are now
following the footsteps of their global counterparts in automating their lending processes,
covering the entire loan life cycle from loan origination through loan application process,
risk assessment, decision making, monitoring, and management control of approved
loans and mortgages.
An automated loan and mortgage processing solution allows these lending organizations
to close more qualified loans faster with improved operational efficiency. It virtually
eliminates the tedious sorting of both paper and electronic files and dramatically
minimizes the costly manual data entry.
The key benefits of an efficient loan processing system include:
 Reduction in processing time by optimal work distribution, immediate identification
of bottlenecks and deviations, and parallel processing of loan application documents.
 Greater customer satisfaction through quicker response and new product offerings
 Efficient document management and tracking of status across the bank
 Improved performance monitoring using audit trails and ability to drill down to
granular details
 Minimized manual entry of critical loan information
 Enhanced accuracy of data entered into the loan system
 Better compliance with regulatory requirements
 Reduced turnaround and processing times
 Easy handling of fluctuations in loan volume
Thus, automation enables lending organizations to process more qualified loans each day
and at a lower cost per loan providing these organizations the much needed advantage to
stay competitive, in a dynamic business environment.
1.3 Problem Statement
The current system inconveniences the customer in the way they apply, get approvals/
rejection of their loan and mortgage applications and it is also taking long for this process
to be taken.

1.4 Project Aim

The aim of the study is to develop an automated loan request, processing and approval
(smart lending) system for CBZ bank customers.
 1.5 Objectives
To develop a system that:
i) Provide good interaction and communication facilities between customers and the
administrator.
ii) To online the back office activities of CBZ banks’ loan and mortgage lending system.
iii) Accept registration of loan and mortgage requests
iv) Process loan and mortgage requests made by clients.
v) Allow client to track progress on the loan application made.
vi) Verify and allocate loan to clients as per requests made.
1.6 Methods and Instruments
Data collection is through questionnaires, interviews, and existing documents. The
waterfall software development method will be used since requirements are clearly stated
and understood. ASP.NET, PHP, Visual Studio and C++/C# will also be used which is an
object oriented programming language together with MSSQL Server 2014. Microsoft
SQL Server is a relational database management system developed by Microsoft. As a
database management system it is a software product whose primary function is to store
and retrieve data as requested by other software applications. The system will need to be
incorporated on the already existing company website.

1.7 Project Justification

The study is significant in the following ways:
i) It will provide a system that will help CBZ in processing of loan and mortgage requests.
ii) It will provide the cases study with an automated system that will enable them to quickly
determine eligibility for loan and mortgage requested and approved and those that are not
approved.
iii) It will serve as a management information system.
iv) The study will also serve as a useful reference material to other researchers seeking for
information pertaining to the study.
1.7.1 Scope of the Study
This study covers developing an automated loan and mortgage request, processing and
approval (smart lending) system for Commercial Bank of Zimbabwe customers.

1.8 Chapter Summary

The chapter introduced the organisation which is in need of the system. It also covered
structure of the organisation, its values and mission statement. The problem was defined
and the proposed solution introduced. The chapter also highlighted the objectives of this
project and what is intended to be addressed.
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CHAPTER 2: PLANNING PHASE.
2.1 Introduction
This chapter identifies whether or not there is the need for a new system to achieve the
business’ strategic objectives. To achieve the aim, a clearly defined road map must be
laid out depicting the milestones and possible deliverables at differing levels of project
progress. Benefits to CBZ through the successful implementation of this smart lending
system will be stated. Pros and cons of the whole system will be analyzed under the
feasibility study. If all considerations are in favour of the development of the system, that
is, if it is found feasible, then work plan can be provided as to how the processes are to be
performed. This chapter will discuss and highlight the following:
1. Business value to both internal and external stakeholders.
2. Feasibility study.
3. Risk analysis by identifying and mitigating potential risks, and work plan.
The project analyst will then come up with the project schedule from which work plan
and Gantt chart will be produced.
2.2 Business Value
Business value involves all forms of value that determine the health and well-being of the
organization in the long run. The Smart lending system was brought about by the need to
scale down the cumbersome manual system in use. Below is an outline of the systems
request that will show the value of the system to the business in different perspectives:
2.2.1 Stakeholder value
Stakeholder value aims at evaluating how the new system will benefit the concerned
stakeholders be it internal or external stakeholders. Internal stakeholders include the
managers and staff. The external stakeholders are the customers.
 The customers will welcome the benefit brought about by the system in the sense that
they will not have to physically visit the bank, thus, reducing the time and travelling
costs.
 The staff will welcome the system as it will reduce time they spend manually going
over each applicants, form. The system will make their job easier.
 The new system will reduce stationery,fuel and other cost involved with the manual
system, so top management will highly welcome the system.
2.2.2 Customer value
Kendall (1992) portrays customer esteems as the advantages that the customers will earn
because of the presentation of the system.
 The system will reduce costs incurred by customers to travel to banks as it will allow
them to apply for loans and mortgages at the comfort of customers’ homes.
 There is convenience such that customers will no longer need to waste time visiting
banks.
2.2.3 Managerial value
Bruce and Langdon (2000) depict authoritative values as advantages that the organisation
as an element appreciates after the presentation of the system.
 The system enables the organisation to lower labour costs than using the manual
methods, revenues will be increased and the hierarchical innovation status is
upgraded thus, boosting the organisational goodwill.
2.2.4 Employee Value
Bruce and Langdon (2000) depict employee esteems as advantages anticipated that would
be delighted by workers after presentation of the system.
 The system will contain all of the customers’ transactions in the database. The system
will reduce manual work for the accountants.
 Reduced work stack – The system will decrease the quantity of customers that will go
to the bank to conduct manual application, to be able to easily generate cash reports
and receipts.
2.3 Analysis of Feasibility
A Feasibility Study is the process of defining exactly what a project is and what strategic
issues need to be considered to assess its feasibility, or likelihood of succeeding
(Overton, 2007). A feasibility study was carried out which provides guidelines needed to
establish whether to proceed with the project or not. The feasibility analysis enables to
determine why the proposed system should be built, ascertain whether the desired
objectives could be achieved within the prevailing economic, financial, organizational
and technological constraints. In addition to this the costs will be weighed against the
benefits to be derived from this system.

2.3.1 Technical Feasibility

2.3.1.1 Technological Trends
Changes in technological trends are responsible for the massive shift in internet usage
from fixed to mobile. According to recent report from POTRAZ internet penetration
stands at 77% and 93% of that is mobile. Therefore from this angle it is a good thing to
develop this smart lending system as it can be used by mobile phones.

2.3.1.2 Technical Expertise

Most staff in the organization are computer literate and due to this, the technical expertise
to operate the system is available and in place. However there is need to train employees
to use the system during implementation phase. The system is not all that complicated
such that they can easily cope and adapt to it with minimal help. Usually the people in the
Information Technology Department are technically competent in developing and
supporting the system and have enough expertise to train these employees.

2.3.1.3 Hardware Specification

For the successful implementation of the system, the following hardware specifications
are recommended:

Table 2.1 Database Server:

ITEM MINIMUM RECOMMENDED

Processor 600MHz x 10 1.6MHz x 10

Cache Processor 256Kb x 10 512Kb x 10

Memory 192GB 200GB

Hard Drive Disk 2TB 2.4TB

Network Card 10/100 10/100

UPS APC Smart ups

 300va

CD/DVD Drive 48x 52x

Printer Laser Jet x 2 Laser Jet x 5

Table 2.2 Client Computer Specification:

ITEM MINIMUM RECOMMENDED

Processor 600MHz 700MHz

Memory 96MB 128Mb

Hard Drive Disk 10Gb 10Gb

Network Card 10/100 10/100

Table 2.3 Network Specifications:

ITEM MINIMUM RECOMMENDED

Hub 12 Port 24 Port

Patch Panel 12 Port Patch Panel 24 Port Patch Panel

NIC 4 6

UPS Power Back Up Power Back Up

220va 300va

Table 2.4 Software specifications:

SOFTWARE VERSION REQUIRED
  Visual Basic 6.0
 Dot net framework 4.7
 Visual Studio
2015
 C#,PHP, ASP.NET
Microsoft SQL Server 2014

McAffee Antivirus 8.5i

Work Station/client Operating Windows 7/8/10

System

Server Operating System Windows 2012 Server

The bank recently upgraded the hardware which houses its core banking system. The
system will reside on some of the servers which were made free after the upgrade. The
system will interface with the core banking system which will house many of the details.
This system will handle a few transactions so the hardware and software requirements in
place are more than enough.

2.3.1.4 Overview of technical feasibility

There are no any technical challenges found here which may hinder the successful
progression of the development of the system. So the project will be still viable in years
to come meaning to say that the researcher is not going to spent resources on a project
that will soon be discarded after completion. The project shall therefore, from a Technical
perspective be allowed to sail.
 2.3.2 Economic Feasibility
An economic evaluation is a vital part of investment appraisal, dealing with factors that
can be quantified, measured, and compared in monetary terms. The results of an
economic evaluation are considered with other aspects to make the project investment
ensure that the Smart Lending system is undertaken in a manner that gives it the best
chances of success.

2.3.2.1 Cost/Benefit Analysis

To assess economic feasibility, management of CBZ bank together with the systems
analyst have to analyze costs and benefits associated with the proposed project. The
capital cost of the project will affect the economic evaluation. Cost estimating is
essentially an intuitive process that attempts to predict the final outcome of investing in
this project. In essence, this project requires very little resources since the organization
already has functional computers (hardware and software) and servers that can only
require upgrading of memory.

Table 1.5: Cost Benefit Analysis

2018 2019 2020

Benefits USD$ USD$ USD$

Reduced paper work 5000 7000 7500

Fewer processing errors 10000 9500 12000

Cost reduction 10000 10000 9500

Increased number of 5000 6000 8000

applicants
Total 30000 32500 37500

COSTS

Training and advertising 5000 0 0

costs

Hardware and software 5000 1500 1800

maintenance

Development costs 10000 0 0

Total 20000 1500 1800

Difference 10000 31000 35700

First Year:
Total benefits: $30 000
Total costs: $20 000
Net benefits = total benefits – total costs
$30 000 - $20 000 = $10 000
Total net benefit in three years: $100 000-$23 300=$76 700.
The above analysis just tells us that by investing USD$23 300 the bank will realize
USD$76 700 in three years’ time. This calculation however does not consider a number
of variables such as interests which is considered in Net Present Value calculation.
The benefits and costs over the period show that total benefits outweigh total costs.

2.3.2.2 Return on Investment

This is a performance measure used to evaluate the efficiency of an investment or to
compare the efficiency of a number of different investments. It is a percentage rate that
measures the relationship between the amount the business gets back from an investment
and the amount invested calculated as below:

((Total Benefits – Total Costs)/Total Costs) x 100

((30000-20000)/20000) X100
10000/20000X100
= 50%
A positive value on the ROI simply means the project is economically viable and is very
appealing considering other feasibility studies that are already pointing in the right
direction. This is a very wise investment to be considered for implementation.
2.3.2.3 Payback Period
Payback period is the period of time it will take for the investment to pay back its initial
cost. A project with a shorter payback period is preferable to a project with a longer
payback and the period must not exceed the business maximum acceptable payback
period.

Table 2.6: Computation of payback period

Year Cash Flow Cumulative Cash flow

0 -20 000 -20 000

1 10 000 -10 000

2 10 000 -

3 - -

The payback period is 2 years which is thus favourable.

2.3.2.4 Overview of economic feasibility

During the first year there are fewer benefits as cost of implementation have to be
considered .However, the project takes its toll then as there are no set up costs and as well
there are lesser costs in administration of the system right throughout. There are a lot of
tangible, non-tangible, indirect and direct benefits for the organization to realize. The
project has to sail through to the next phase of analyses.

2.3.3 Operational Feasibility

The project size is moderate and manageable. The proposed system got management
thumbs- up, fits well within the existing organizational structures, policies, procedures,
goals, available resources, objectives and operational environment. The system is
expected to be fully practical and effective upon completion. Workers are keen to receive
new system and use it to their advantage to enhance work performance. They will receive
the requisite skills and knowledge necessary for them to administer the system
professionally. They do not feel threatened since they are not going to be made redundant
with the coming of the new system. The management on the other side is very eager to
have the system in place and they are confident that it will give them an edge on the
market. Generally, the system acceptance level is very high both from internal staff and
the external clients as it benefits them both. Training and training manuals will be
provided for the staff whilst training manuals will be available for the clients on the
organization’s website, social media platforms and the 24-hour Contact Centre will be
there to assist.

2.3.4 Social Feasibility

A survey was conducted on the main stakeholders to establish how the system affects
them. This system affects employees positively as it makes their job easier and also
improves the way clients can apply for loans and mortgages wherever they are. The
system will help establish good rapport between the organization and the society as
people feel will make their life easier.

2.4 Risk Analysis

Risk analysis is the review of the risks associated with a particular event or action. This
looks at the major risks associated with the development and implementation of the new
system and measures to mitigate them.

2.4.1 Technical
The main technical risks are related to hardware and software failure which would affect
the entire project. Technical expertise is another risk that would have affected the project.
There exist backups for the hardware and software which can be used in the event of
hardware malfunction. Also the developers possess the necessary skills to finish this
project within acceptable project timelines.
2.4.2 Testing
Once a system is developed developers have the tendency of forgoing the testing phase
thereby putting the users at risk.

2.4.3 Time
There are fears that the project might not be completed on time if a more urgent problem
requires that the developers be assigned to fix it. This might affect the project plan.
2.4.5 Economic
The project needs money for it to succeed. The bank mail fail to fund the project.
2.5 Project Plan
The system Development Life Cycle (SDLC) is used in the development of this project.
The stages are to be undertaken in their sequence and time frame for completion of the
activities of each stage. The development of the work plan involves the identification of
tasks to be developed and allocation of resources to such tasks. The waterfall model has
been adopted. It offers the means of making the development process more
visible.Advantages of waterfall model are:
 Enforces a disciplined engineering approach.
 Verification is done at each stage.
 Increased visibility.

2.5.1 Work Plan

The work plan is where all the tasks associated with the project were noted down. These
tasks are assigned a start date and the duration. The work plan shows the schedule of how
the project progressed from project proposal to maintenance. It is important to schedule
tasks showing time frames and sequence of activities to be concluded. There are many
ways and tools to use in scheduling and allocating time to events and activities during
system development. The Gantt chart and an activity table have been used in this project
to present scheduling of activities and resources.
 2.5.2 Activity Timetable
Table 2.7 Activity Timetable
TASK MODE TASK NAME DURATION START FINISH COMMENTS
(DAYS)
1 Manually Project 10 MON FRI
Scheduled Proposal 08/01/18 20/01/18

2 Manually Feasibility 12 FRI MON

Scheduled study 20/01/18 05/02/18

3 Manually Systems 14 TUE FRI

Scheduled analysis 30/01/18 16/02/18

4 ManuallySchedule Systems design 39 MON THUR

d 05/02/18 29/03/18

5 Manually Coding, 14 THUR THUR

Scheduled Implementation 29/03/18 19/04/18
& Training
6 Manually Evaluation 365 THUR FRI
Scheduled &maintenance 19/04/18 19/04/19

7 Manually Documentation MON FRI

Scheduled phase 08/01/18 20/04/18

2.6.3 Gantt Chart

The Gantt chart was prepared as it helps the developers plan on the time to be allocated
on each stage of the software development project. It will be used by the project leader in
controlling and budgeting purposes. After each stage is finished after the predetermined
date it will be easy to identify any problems.

Table 2.8: Gantt chart.

Duration (weeks) 1 2 3 4 5 6 7 8
 Project Proposal

Feasibility study

Systems analysis

Systems design

Coding, Training
&Implementation

Evaluation &
maintenance
Documentation phase

2.6.4 Conclusion
This chapter mainly focused on carrying out feasibility studies. This was done to assess
the business value of the system to the organization. With the majority of the hardware
already in place this interested management as it meant costs were minimal. This chapter
further highlighted that this project is very much feasible as the costs outweigh the
benefits. A work breakdown structure was also done in this chapter and all project
timelines were set. The proposed system is highly feasible. Thorough analysis of the
feasibility study revealed that benefits significantly outweigh expenses with just a year of
the implementation of the system. A road map was then made to achieving system
development, implementing the system and enjoys the benefits. In the next phase the
researcher will analyze the system backed by sought requirements in preparation for its
development.

Technical Feasibility ……………………………………. Excellent.

Economic Feasibility……………………………………… Excellent.
Organizational Feasibility……………………................. Excellent.
 ….notes….

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CHAPTER THREE: ANALYSIS PHASE
3.1 Introduction
The researcher looked closely at the current system in a bid to scrutinize its flaws and
capabilities. These investigations brought forth reasons why a new system is necessary.
Information was also gathered from CBZ staff, and the banks clients who happen to be
the users for the old system and the new system is intended to serve too. Several
information gathering techniques were employed to try and get data and/or information
on the current system’s performance, actual and expected deliverables as well as other
related concerns. This helps affix the scope of the new system as well as ensure its user
acceptance when the system is finally implemented.

3.2 Data Gathering Techniques

While gathering data and information, employees in the loan and mortgage sections and
clients being attended to especially those applying for loans or enquiring were involved
actively in the process. They completed questionnaires, participated in interviews and
were observed while performing and going on with the processes. Data gathering
methods are the methods used to gather information about the existing system. The three
methods used were:
 Interviews
 Questionnaires
 Observation

3.2.1 Interviews
Interview is the verbal conversation between two people with the objective of collecting
relevant information for the purpose of research. In-depth interviews can be defined as a
qualitative research technique which involves “conducting intensive individual interviews
with a small number of respondents to explore their perspectives on a particular idea,
program or situation” (Boyce & Neale, 2006). The interviewer carried out interviews as a
way of gathering information about how the manual loan and mortgage application and
verification system worked. Different types of interviews were carried out in gathering
the information which was used.

A list of questions was prepared and used to gather more facts from the users of the
system and the clients enquiring or applying for the loans. Unstructured interviews were
usually the least reliable form of interviews because no questions were prepared prior to
the interview and interview were conducted in an informal manner. Semi-structured
interviews contain components of both structured and unstructured interviews. In semi-
structured interviews, the interviewer prepared a set of same questions to be answered by
all interviewees, however additional questions were asked during interviews to clarify
and/or further expand certain issues. Of the three data gathering techniques used the
interviews provided the greatest depth for a number of reasons.

3.2.1.1 Advantages of interviews

 The interviewer was able to provide direct feedback to the interviewee, giving
clarifications and alleviated any misconceptions.
 Quick and immediate responses from interviewee and interviewer.
 Interviews provided the highest participation as people preferred to answer questions
immediately other than fill in questionnaires.
 The interviewer allowed the respondents to use a language of their choice in which
there were comfortable in so that all the information came out clearly and as such
misinterpretations concerning questions were avoided.

3.2.1.2 Disadvantages of Interviews

The interviews also came with their challenges or limitations.
 Since employees were interviewed, some employees fearing for their jobs answered
with bias. Some thought the system would make them redundant due to automation of
some tasks.
 Some employees or clients did not have time to sit down and be interviewed and
preferred the other techniques.
 There were some clients who did not feel comfortable being interviewed around
things to do with money.

Generally, the results from the interviews were pleasing as this was a solution which was
more of a benefit to all stakeholders. Majority of those interviewed wanted it extended to
all loan products offered by the bank.

3.2.2 Questionnaires
This is a set of questions to be asked to a number of people usually in order to gather
information or opinions. Questionnaires are designed in a consistent manner so that
respondent would find it easy to answer all questions. Questionnaires were compiled and
sent out to the departments involved with the old system with some for giving out to
clients and the following issues came out as advantages and disadvantages of the
questionnaire information gathering technique.

3.2.2.1 Advantages of Questionnaires

 Anonymity enables the respondent to answer the questions freely, with no fear. Each
responded had to deposit his/her completed questionnaires in a deposit box at the
 enquiries desk others completed the questionnaires and returned the scanned copies
through email.
 The researcher discovered that questionnaires took a shorter time to prepare and sent
out to the respondents.
 It was cost effective and time saving since questionnaires could be distributed to all
people at once.
 Respondents completed their questionnaire at their own time although there was a
time frame in which they had to be returned.

3.2.2.2 Disadvantages of Questionnaires

 Lack of personal communication between the researcher and the respondent took
longer to return responses.
 The response rate was very low in some branches but high where the staff was
involved and branches which are less busy.
 Some misinterpreted questions leading to some providing wrong answers.
 There was no way to tell how truthful a respondent is being.

The researcher was satisfied with the results of the questionnaires as this method was
used to complement the other methods. The response rate was satisfactory from the
external clients but overwhelming from members of staff who completed them.

3.2.3 Observations
This is a technique where the researcher can gather data as an event occurs and hence has
to be present. The researcher was both participant and non-participant in the process. It
allowed first-hand information experience and the person conducting the observation
views exactly what is going on.

3.2.3.1 Advantages of observations

 The observer got more information that he could not have obtained under any other
method.
 The observer got the information first hand and had a feel of how the system works
thus removed any bias.
 The method allowed the employees to continue doing their work as if nothing has
happened.
 This process provided good opportunity to identify unanticipated outcomes.
 The observer got a true picture of what happens on the ground.
3.2.3.2 Disadvantages of observations
 The method was time consuming as the observer had to go to some branches to see
what is involved as the staff was going on with their duties. Different people handle
the same process differently.
 When people became aware that they were being observed they changed their normal
way of doing their duties, hence results may be biased.
 Information provided by this method is very limited at certain times.

As an aid to other data gathering methods, observations served their purpose and the
information that was derived assisted greatly in fact finding.

3.3 Analysis of the existing system

This stage is concerned with the study of the old system as observed using the
information gathering techniques. The system in use is predominantly manual although
parts of the later processes are automated. It is the manual part that the analysis covers in
greater detail as the objective was to automate it. The process involves customer having
to physically visit a branch to fill in application forms and submit the completed forms.
The number of applicants per given day was dependent on the location of the branch and
the time of the year. Since some branches were not given the mandate of approving loans
they would collect the forms and send them overnight to their main branches for
processing and approvals. There was a log book which applicants would sign as a record
of their application forms having been successfully lodged with the bank. This was
mainly for references purposes once the application forms together with relevant
supporting documents were submitted.

3.3.1 General description of the existing system

Here the existing system is a manual that does not maintain details with proper security
and cannot track details easily.A customer has to visit a bank and access application
forms and complete them. The customer has to return back after fourteen working days to
check if it was approved, if approved has to sign and provide initials on each page of the
form and re-submit again. The customer will wait again for more seven working days and
the loan amount or mortgage will be deposited in the personal account of the customer.
3.3.2 Inputs
The inputs of the existing system include
 Completed application form;
 Certified copies of personal documents;
 Proof of employment letter.
3.3.3 Processes
Processes of the system are
 Capturing of application form
 Analyzing if all required documents have been sent;
 Checking if the application form has been filled correctly;
 Submitting the application documents for verification;
 Checking whether the application meets the criteria.

3.3.4 Outputs
Outputs of the system are:
 Successful application and loan or mortgage disbursements
 Approval reports, rejected loan or mortgage reports

3.3.5 Activity Diagram of the existing system

An activity diagram resembles a horizontal or vertical flowchart that shows the actions
and events as they occur. Activity diagrams show the order in which the actions take
place and identify the outcomes. Activity diagrams are dynamic modelling tools that can
help a systems analyst understand how objects behave and interact with the system
(Shelly & Rosenblatt, 2012)
 Applicant
Yes Credit Analyst verifies
request for
application details
loan/mortgage

Yes
No
Yes
Send verified
Reject loan/mortgage form and
details to loans/mortgage
dept.
Yes Yes

Loans/mortgage dept.
Reports Approves/rejects
loan/mortgage

Yes

Loans dept. disburses loan

Customer Credit Analyst

Fig 3.1 Activity Diagram

3.3.6 DFD of existing system

A data flow diagram (DFD) shows how data moves through an information system but
does not show program logic or processing steps. A context diagram is a top-level view
of an information system that shows the loan application and verification system’s
boundaries and scope. A context diagram is shown as one process. DFDs use four basic
symbols that represent processes, data flows, data stores and entities. Different versions
of symbols exist and this project used the Gane and Sarson symbol set.
 Process symbol. A process received input data and produces output that has a different
content, form or both. This symbol is often referred to as a black block because the
 inputs, outputs and general functions of the process are known but the underlying details
and logic of the process are hidden (Shelly & Rosenblatt, 2012)
 Data flow symbol. A data flow is a path for data to move from one part of the
information system to another.
 Data store symbol. A data store is used to represent data that the system stores because
one or more processes need to use the data at some stage.
 Entity symbol. Entities provide data to the system or receive output from the system.
These are also called terminators because they are data origins or final destinations. An
entity that supplies data to the system is called a source and an entity that receives data
from the system a sink (Shelly & Rosenblatt, 2012)

Context Diagram of the current manual system

response letter application form Bank Credit
Customer
Analyst
processed loan

loan application form verified loan form

CBZ Loan Application

system

verified loan details

processed loan

approval/rejection letter

Loan Officer

Fig 3.2 Context diagram

Key
 Level1 Current
DFD

1.0
Customer application Completes
application

2.0
Verify Credit Analyst
application
form
Application
Approved
Loan/mortgage

Rejected loan/mortgage

Rejection details

3.0
Loan Officer
Processed Process
application

Approved loan/mortgage details

Disbursements Loan details 4.0

Disburse loan/mortgage

Fig 3.3 Level 1 DFD of Current System

3.4 Weakness of the current system

The current system possesses a number of weaknesses which include
 Poor security and poor storage of documents submitted.
 Application has to be done by physically visiting the bank and within normal banking
hours.
  Retrieval of documents is not easy as one has to go through physical files.
 Difficult to compile statistics
 Documents can be easily lost or misplaced
 The entire process from submitting a form to verification is slow and time consuming.

3.5 Evaluation of alternatives

A number of alternatives exist which can be analysed. The identified alternatives are
 Outsourcing;
 Improve the existing system; and

 Development.

3.5.1 Outsourcing
As defined by Chase et al. (2004), outsourcing is an act of moving some of a firm's
internal activities and decision responsibilities to outside providers. The Bank can
outsource and buy already developed off the shelf system and implement it as a solution
to this problem. IT outsourcing occurs when an organization contracts a service provider
to perform an IT function instead of performing the function itself. This approach comes
with its merits and demerits.
Advantages of outsourcing
 Buying an already existing results in minimum errors since it is tried and tested
 Easy to implement, hence saves time
 Automation of processes, hence less paperwork
 The company that sells the software, may provide maintenance
3.5.1.1 Disadvantages of outsourcing
 The cost associated with outsourcing is that the packaged software is usually expensive to
purchase and will have some licensing fees.
 May not address all organizational challenges and requirements
 Outsourcing will mean there is no growth in the IT department as they will not be
awarded the opportunity to develop implement and maintain.
 Outsourced systems are difficult to do enhancements as the vendor usually do not avail
the source code for anyone but themselves to do enhancements. They usually also charge
extra for such.

3.5.2 Improvement of the current system

The bank may decide to improve the existing system so that it becomes more efficient.
There are number of way this can be achieved. Whilst it might not address the entire
customer’s concerns it would in a way. Such improvements would involve having the
people who approve the loan being resident in all branches to reduce the lead time.
Another improvement would be to have the staff collecting the application forms doing
the scanning and storage of the electronic documents upon receipt from the client.
Advantages of improving the system
 Once the changes are identified for the improvement of the current system,
implementation can quickly start and this method is time conscious.
 The employees are already familiar with the system and the setup.
Disadvantages of improving the system
 Making the staff collect and scan the documents whilst the client is there will further
slow the process and inconvenience the client further.
 This doesn’t address the original customer needs.
 Records retrieval and updating of customer will not be improved.

3.5.3 Development
The developer can develop the system based on the customer requirements. The
automated system would solve the challenges currently faced.
Advantages of developing the system
 The bank already employs a number of highly skilled developers who can develop the
system at no extra cost
 An internally developed system is easier to customize and integrate with other systems
like the main/core banking system.
 Easy system support and maintenance since the system is documented at the end of the
implementation.
 Staff training costs will be minimized as staff will be trained on the use of the system
during the development stages.
 The system will be 100% owned by the bank and will not require annual fees for
licencing and maintenance
 System upgrades can be done as and when they are required without extra costs.
Disadvantages of developing the system
 Custom development can be time consuming.
 The developers employed by the bank might not have the expertise and time found in
developers who work in full time system development firms whose main duties are to
develop systems for different markets and testing them.
 If the system fails to meet all requirements it will have been a loss in many hours of the
development team.
3.7.4 The selected alternative
After evaluating all the alternatives, developing in-house was found to be the best
alternative. It was chosen because of its advantages of implementing a tailor made system
that is going to address requirements. The system will also be implemented within the
organization’s budget. System developed in-house will encourage user participation;
hence users are likely to accept the system. As a cost reduction measure the organization
is trying to move away from having third party system and thus for any new system
requirements, in house development is first explored so as to cut down on costs.

3.6 Requirements Analysis

The objective of requirements analysis is to define in more detail the system inputs,
processes, outputs and interfaces. Requirements Analysis will collect the functional and
system requirements of the business process, the user requirements and the operational
requirements.
3.6.1 Functional requirements
Functional requirements are what users need for the system to work. These define the
capabilities and functions that a system must be able to perform successfully. They are
user visible features and are initiated by stakeholders of the system.
  Report generation - The system will provide timely and accurate information.
Reports will be used by the management and some staff members in the Loan and
mortgage Unit as a tool of monitoring applications, approvals and rejections. The
system allows reports be developed as and when they are required by the unit.
 Authentication - Given a username and password, the proposed system shall
authenticate the user who provides the credentials.
 Use of a central database- this is to enable real-time updating, capturing and
manipulation to facilitate access to current state
 Data integrity- The system offers all data integrity controls for example it should
not allow any duplicates.
 Historical information processing- The system shall produce a history of
transactions for each customer so that a trend analysis can be done.
 Backup Requirements-The system is easy to back up and restore so that any
queries which are no longer in the system can be retrieved and analysed.
 Error handling- The system should be well validated, and not accept input errors.
 System interface - The system should be user friendly and very interactive for
ease of operation in data capturing and hence ensure efficiency.
The system should reduce the workload and the number of customers calling to make
enquiries or check on the progress of their application and even assist in calculations and
making applications.

3.6.1.1 Use Case Diagram

A use case diagram is a visual summary of several related use cases within a system or
subsystem. In use case diagram the system boundary represented by a rectangle shows
what is included in the system (inside the rectangle) and what is not included in the
system (outside the rectangle). Actor is a person who uses the system. The actor is always
outside the automation boundary of the system but may be part of the manual portion of
the system. A use case is an activity the system carries out, usually in response to a
request by a user of the system.
Table 3.2 Use case symbols

USECASE SYMBOLS

Actor

Usecase
USE CASE DIAGRAM

Request for loan/mortgage

verify

Customer Credit Analyst

process

approve

Loans Officer
Reject

Disburse

Reports
 3.6.2 Non-functional requirements
Non-functional requirements are non-visible features but required for an effective
running of an application. Non-functional requirements are often harder to deal with than
functional ones because their impact is generally not localized to one part of the system
but cuts across the whole system.
Non-functional requirements of the system include:
 Scalability- This is the ability of the system to handle an increased workload without
significantly increasing the transaction processing time
 Availability- The system should be available at all times for use. The system should be
able to meet the service level agreements.
 Stability- The system should be stable for users to use it.
 Reliability- The system should at all times produce correct results.
 Audit and compliance- The system should meet all the audit requirements of the bank.
 Performance-The system should perform to expectation of all concerned.
 Security- No unauthorized person should be allowed to access to the system. A user must
log into the system using a password and a username.

3.7 Summary
The analysis phase provided us with a complete understanding of the current system, the
processes through effective information gathering methods used while at the same time it
has created an understanding of what the proposed system should be able to do by
analysing also its functional requirements. The description of the current system shows
that the system required to be redesigned so that the system performs according to the
functional and non-functional requirements of the users of the sys
 CHAPTER FOUR: DESIGN PHASE
4.1 Introduction
In this chapter the researcher defines the architecture, the interfaces as well as the
components and data for the system. These are the attributes that help satisfy the
requirements. The design phase basically entails how the system is going to work. All the
design for input and output forms, design for system interface as well as the design for
data attributes is done in this phase. The new system should not be found wanting in
terms of its efficiency, effectiveness, reliability and maintainability. These requirements
may change over time and sometimes there will not be any need to update or change the
system as long as it will still be catering for all these conditions.

4.2 System Design

System Design determines how the system is created and how it will operate in terms of
hardware, software, networking, system personnel and operating procedures. The major
reason for this project is the automation of a manual system. Majority of the system
functions remain in place but were changed from being too manual to being automated.
4.2.1 Inputs, Processes and Outputs
4.2.1.1 Inputs
The inputs of the system are mainly the same as those of the current manual system.
These include:
 Customer personal information
 Customer employment and salary information
 Customer banking details
 Type of loan and mortgage required
 Amount requested
 Loan or mortgage class information.
4.2.1.2 Processes
 Verifying loan and mortgage amounts and installments according to loan calculation
 Updating loan and mortgage status information
 Validating information entered
 Computing amounts, repayment and interest
 Verifying information entered
 4.2.1.3 Outputs
 Reports
 Notifications
 Loan and mortgage computations.
4.2.2 Data Flow Diagrams
As described in the previous chapter data flow diagrams are constructed using four major
components which are:
 External entities- representing the sources of data that enter the system or the recipients
of data that leave the system. Examples are bank employees or the clients who enter data
into the system.
 Data stores- represent stores of data within the system.
 Processes- represent activities in which data is manipulated by being stored or retrieved
or transformed in some way.
 Data flows- represent the movement of data between other components.

Loan Response notification Customer loan details

Customer Salaries Officer

Loan Application details Verified customer loan details

Registration

Online Loan Application

and Verification system

Verified loan details

Enquiry details

Approval notification enquiry

Loan Officer Visitor
Rejection notification

Fig 4.1 Context Diagram

 Level 1 DFD

Registration details
Registration
1.0
Customer details Completes registration
Registration

2.0 Application details

Submits Application
Application

Rejected notification
Rejections 3.0
Verify Salaries Officer
application
Approval notification

Rejection details

4.0
Loan Officer
Approvals Process
application

Fig 4.2 Level 1 DFD – Proposed system

successful registration details
Registration

1.1 1.2 1.3

Customer details Fills in Validates Processes
Registration Registration Registration
form form form

Rejectedregistration

2.2 2.1
Validates loan Accepts loan
Application application

Completedapplication 3.1
Application verifies salary Salaries Officer
details
Acceptedsalary details
Rejected notification Rejectedapplication
3.2
Rejections
Accepts form
Approvals details
Rejectedapplication Accepted form

4.1
4.2
Checks Loan Officer
Approvedapplication Computes
Approved notification application
application
details

Fig 4.3 Level 2 DFD – Proposed System

4.3 Architecture Design
The objective of architectural design is to minimize bottlenecks in the system caused by
hardware, software and architectural factors. Architectural design represents the structure
of data and program components that are required to build a computer-based system. The
system should run on a reliable hardware platform and procedures should be put in place
to back up the system regularly in case the system is corrupted. The objective of
architectural design is also to control the relationship between modules.
4.3.1 Physical Design
The physical design deals with how the physical or hardware components of the proposed
system are going to be set and how they communicate. Physical design specifies the
characteristics of the system components necessary to put the logical design into action.
Physical design illustrates how the software and hardware is going to interact.

4.3.2 Network Diagram

Internet

Terminal
Client

switch

Firewall

Loan Terminal
Officer Servers

Fig. 4.4 Network diagram

 4.4 User Interface Design
4.4.1 Menu Design
ONLINE LOAN APPLICATION AND VERIFICATION SYSTEM
Home Application Verification Processing Reports About
Fig 4.5 Menu screen

4.4.2 Input Design

ONLINE LOAN APPLICATION AND VERIFICATION SYSTEM

USERNAME

PASSWORD

LOGIN

Fig 4.6 Login screen

Fig 4.7 Change password screen

 4.5.3 Process Design
ONLINE LOAN APPLICATION AND VERIFICATION SYSTEM
Home Application Verification Processing Reports About
Applicant Details
First Name Salary
Last Name Required Loan Amount
Date of Birth Existing Loan Amount
Marital Status Tenure
Employment Status Bank Account
Time (Employed)
Home owned/tenant

SUBMIT RESET RETURN

Fig 4.8 Loan Application screen

Fig 4.9 Rate maintenance screen

ONLINE LOAN APPLICATION AND VERIFICATION SYSTEM
Home Application Verification Processing Reports About

Loan Type

Loan Class

Loan Rate

ACCEPT REJECT
 4.5.4 Output Design
ONLINE LOAN APPLICATION AND VERIFICATION SYSTEM
Loan Maintenance Report
Loan Type Loan Class Prev Rate New Rate Prev_Tenure New Tenure Change done
by

Fig 4.10 Loan maintenance report

ONLINE LOAN APPLICATION AND VERIFICATION SYSTEM

Acc Num Name Tel Address Status
xxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxx xxxxxxxxxxx

Fig 4.11 Registration status report

4.5 Process Design
4.5.1 Flow Chart

Registration

No

Yes
start Is Registered Login

Yes
Guest
No
Is Authenticat ed

Bank /Admin side yes Client Side

View Customer View Loan /mortggeTypes

Manage Application
Details and Requirements

View Loan Types

Manage Customer
Details

Apply for loan

Manage Loan Types

Details

Track Loan Status

Generate Reports
Update Customer
Details

View Reports

Logout End

Fig 4.12 Flowchart for the proposed system

4.6 Program Design
4.6.1 Sequence diagram
A sequence diagram shows the timing of interactions between objects as they occur. The
interaction proceeds from top to bottom along a vertical timeline while the horizontal
arrows represent messages from one object to another.

Clien
Client t Register Login Loan Report

Request to register

Reg approved

Login request

Login authenticated

Requests loan

response
Req report

Report delivered

Clerk Login Verify Approve Reject Report

req login
Login approved

provide details

verified

request approval

approved

request reject

rejected

req for report

report provided

Fig 4.13 Sequence diagrams

4.6.2 Class Diagram
A class diagram is used for describing structure and behaviour in the use cases. It
provides a conceptual model of the system in terms of entities and their relationships. A
class is represented with boxes which contain three parts which are name, attributes and
operations.
 Name: the top part contains the name of the class. It is printed in bold, centre and
the first letter capitalized.
 Attributes: the middle part contains the attributes of the class. They are left
aligned and the first letter is lower case.
 Operations: the bottom part gives the methods or operations the class can take.

Customer Registration
cust_id firstname
firstname surname
surname uname
accno password
gender Add()
Add() Delete()
Delete()

Verification
Application Salariesofficer
cust_id
app_id id
app_id
lnType username
loantype
password
loanamount
Add() Add() login()
Delete() Delete()
Update()

Loan Type Loan admin Loan

no username id
loantype password loantype
duration cust_id
rate login()
Add()
Add() Delete()
Delete() Update()
Update()

Fig 4.14 Class Diagram

4.6.3 Pseudocode
Pseudocode is a simple way of writing programming code in English. Pseudocode is not
actual programming language. It uses short phrases to write code for programs before you
actually create it in a specific language. 

4.6.3.1 Advantages of Pseudocode

1.Easily modified. This can be changed easily if need be.
2.Implements structured concepts
3.Even a non-programmer can follow the sequence
4.6.3.2 Disadvantages
1.No accepted standard of writing pseudocode.

4.6.3.3 Registration
Start Program
Select Registration module
Read input
If customer has an existing CBZ Bank Account Number and input is correct
Accept Registration Otherwise Reject Registration
Display decision
4.6.3.4 Login
If customer is registered
Read login input
Verify login input
If input is correct Accept Login Otherwise
Reject login
Display appropriate message
4.6.3.5 Logout
While logout is not selected remain in program
4.6.3.6 Guest enquiry
If guest is selected display Welcome Guest
Choose option
Read input
While option is not exit
Read details required and select compute
4.6.3.7 Once a client has successfully logged on:
Choose option from menu
If view customer details is selected
Display customer details
Else
If apply for loan is selected
Complete the loan application
Else
If view loan types is selected
Display the loan types screen and options
Else
If track application is selected
Show tracking details if one exists
Else
If update customer details is selected
Show customer details screen and accept input
Else
If logout is selected
Exit the program
4.6.3.8 Bank user logs in
Choose from menu
When manage application is selected go to manage application screen
When generate report is selected go to reports screen
When manage customer details is selected go to customer details screen
When manage loan types is selected go to loan types maintenance screen
When change password is selected change password
When logout is selected log out of the program
4.7 Database Design
Database design describes many different parts of the design of an overall database
system. It is the logical design of the base structures used to store the data. It also
includes the forms and queries used as part of the overall database application within the
database management system. Database design is also the process of producing a
detailed data model of a database containing all the needed logical and physical design
choices and physical storage parameters needed to generate a design of a database. The
objective of database design is to create a complete, normalized, non-redundant and fully
integrated conceptual, logical and physical data models.

4.7.1 Data modeling

A data model is a conceptual representation of the data structures that are required by the
database. The data model is one part of the conceptual design process. The data model
focuses on what data should be stored in the database. The data model is used to design
the relational tables. The relational database model was chosen and used in designing the
database for this system. A relational database poses numerous advantages which
include:
 Data is only stored once (avoids data duplication) meaning no multiple records
changes needs, efficient storage and its simple to delete or modify details.
 Complex queries can be carried out.
 Better security. The data is split into tables. Users depending on their authorisations
would only view data they are permitted to have access to.
 Caters for future requirements. The separate tables which store data makes it simple
to add records that may be needed in future.
A database management system (DBMS) is a collection of programs that enables an
organisation to store, modify and extract information from a database. The chosen DBMS
was Microsoft SQL Server. The company already has many other databases running on
this and the database administrators are already experienced in supporting this. This will
make the database of the online loan application and verification system easier to
manage.
(Stephens & Plew, 2001) describe conceptual, logical and physical data model has having
the features as described below.
A conceptual data model identifies the highest-level relationships between the different
entities. Features of conceptual data model include:
 Includes the important entities and the relationships among them.
 No attribute is specified.
 No primary key is specified.
A logical data model describes the data in as much detail as possible, without regard to
how they will be physical implemented in the database. Features of a logical data model
include:
 Includes all entities and relationships among them.
 All attributes for each entity are specified.
 The primary key for each entity is specified.
 Foreign keys (keys identifying the relationship between different entities) are
specified.
 Normalization occurs at this level.
Physical data model represents how the model will be built in the database. A physical
database model shows all table structures, including column name, column data type,
column constraints, primary key, foreign key, and relationships between tables. Features
of a physical data model include:
 Specification all tables and columns.
 Foreign keys are used to identify relationships between tables.
 Physical considerations may cause the physical data model to be quite different from
the logical data model.
 Physical data model will be different for different RDBMS.
4.7.2 Database architecture design

Three Levels of abstraction

View1 View2 View3 Viewn

External View

Logical/conceptual schema
Logical level

Physical schema Physical Level

Fig 4.15 Levels of abstraction

The database is designed from three different viewpoints known as schema.

 Physical Level: This is the lowest level of abstraction and describes how data is
actually stored in the database.
 Conceptual/Logical Level: This is the middle level and describes what data is
stored in the database and the relationships that exist amongst the data.
 View Level: This level shows the highest level of abstraction. This level describes
the user interaction with database system.
4.7.3 Data dictionary and table design
Data dictionary is a main method for analysing the data flows and data stores of data
oriented systems. It collects, coordinates and confirms what a specific data term means to
different people in the organisation. The data dictionary may be used for the following
reasons:
 Provide documentation
 Eliminate redundancy
 Validate the data flow diagram
 Provide a starting point for developing screens and reports
 To develop the logic for DFD processes

Table 4.1 Table: loanapp

Column Name Data Type Description
Firstname varchar(50) First name of applicant
Lastname varchar(50) Surname of applicant
Dob date Applicant’s date of birth
Maritalstat varchar(50) Marital status of applicant
Empstat varchar(50) Employee status
timeinemp int Time in employment
Salary decimal(18,0) Salary
loanreq decimal(18,0) Loan amount required
Home varchar(50)
Term int Loan term
Accno varchar(50) Accountnumber of applicant
Date date
Refno varchar(50) Loan reference number
 Table 4.2 Table: users

Table 4.3 Table: roles

4.7.4 Entity relationship diagram

ERD is a model that identifies the entities that exist in a system and the relationships
between those entities. ERD is a graphical tool for modelling data.
It consists of four components:
 Entity. This is a person, place, object, event or concept about which data is to be
maintained. Examples of entities for this system include customer, Admin who is a bank
employee, Registration and loan application.
 Relationships. These are associations among several entities. These are given a name that
describes its function.
 Attributes. These are descriptive properties possessed by each member of an entity set.
For example, Entity Customer has attributes Forename, Surname, Identity number.
 Cardinality. This is the minimum or maximum number of instances of one entity that can
(or must be) associated with each instance of another entity. For example, One Customer
submits One Registration.
In coming up with the ER Diagram for the system, the following steps were followed”
 i. Identified the entity.
ii. Identified the relationships between entities.
iii. Identified the cardinality constraint.
iv. Identified the entity’s attributes
v. Designed the ERD

Entity Relationship Diagram

Cust Acc # Customer name IDNum Rates

balance
Address CIF Loan ID
1
1 1
Loan Details submits Customer views Loan Calculator
1
m 1 1
Loanname

Cust id

views
manages submits Registration

Customer name m

LoanType m
m m Cust Acc #
processes LoanApp

processes
Customer
manages Loanref #
Name
m

Loan 1
1 Management
1 modifies
id

name

ID

Fig 4.16 Entity Relationship Diagram

4.8 Security Design
Security is very important for any system. Users and customers get satisfaction in
knowing that their information is kept safe and confidential. Security also involves
making sure that only authorised users have access to what they should see. Various
security measures have been employed.
 Physical security. The servers are housed in the main Data Centre where access is
restricted only to authorised users. This saves the servers from being tampered with.
Physical access into the Data Centre is through biometric access. The server rooms
also have locks to add on top of the biometric access.
 Logical security. There are various measures including access control and auditing,
user access management. Remote access to the servers is also restricted and only
authorised personnel can log in remotely. User ‘sa’ on the database is restricted from
logging into the database from the SQL front end. Database personnel and those who
require to log into management studio will login with their individual ids and access
to what they can update of delete is also restricted.
 Software security. The operating system window server 2012 and SQL Server 2014
are constantly patched so that vulnerabilities are addressed. Only licenced software is
installed on the servers.
 Access level security. This involves defining access levels depending on the nature of
the work or what each user of the system should have access to. This means only
authorized personnel will have access to what they are authorized to see. This also
means confidentiality is maintained.

4.9 Backup Design

The backup strategy to be adopted is the Grandfather-Father-Son (GFS rotation scheme).
This method basically defines three backup sets. The choice selected for this system is
daily, weekly and monthly. This means that the tapes kept will have 6 daily backups, 4
weekly and 12 monthly backups. To utilise GFS, the backup involves rotating each of the
daily, weekly and monthly tapes according to their cycle. This means on the 7 th day, the
daily (son) graduates to weekly backup (father). On the 4 th week, the weekly backup
graduates to a monthly (grandfather). The daily and weekly tapes get re-used during the
cycle while the monthly tapes are removed from the cycle and stored securely offsite.
The backups done will be of a full backup nature. This means all the data is stored will be
backed up.

4.9.1 Advantages of full backup

 Everything is backed up at once on one device.
 Restoring the data can be a simple process.
 Data can be better protected.

4.9.2 Disadvantages of full backup

 Can take a long time to run the backup depending on the quantity of the data.
 Can take longer to restore the backup.
 Storage media and medium could be expensive.
 Security issue as each full backup contains an entire copy of all data.
The disks housing operating system and the database is RAID 1+0. This means the drives
are mirrored. A maintenance plan will be created each backup cycle to run the full back
up at 2100hrs daily. It will run from the database server and will do a full backup with
compression. The file will be written to disk and the IT Operators will immediately copy
the dump to tape. This is then lodged with the IT tape library who stored tapes off-site
daily. The lodging of the tape is done the following working day.
 Fig
4.17 Example of maintenance plan for the database backup

4.10 Test Data Design

Test is derived from the Latin word “Testum” meaning a pottery vessel used to measure
or assess (Rentala,2017).
Test Design methods employed in the project were:
i) Black box testing. This is a testing technique having no knowledge of the internal
functionality/structure of the system.
ii) White box testing. This focuses specifically on using internal knowledge of the
software to guide the selection of the test data.it allows to test parts of the
program.
A test case is a set of test steps, execution conditions and expected results developed for a
particular objective such as to exercise a particular program path or to verify compliance
with a specific requirement.
Test cases were designed for this system with four basic parts namely:
 Description of the test case;
 Description of each step;
 Expected result for each step;
  Actual result for each step.
All components of the system were tested. This involved components like customer
login, database backup and restorations, customer registration, Head Office user creation
and amendment, password change and many more. The tests will be done by bank
officials, programmer will test the code, other selected bank employees will test on behalf
of the external customer. The few selected external customers will test the system during
the pilot run of the system.

Test case design will be based on the test case below:

Table 4.4 Test case design sample
Test Case Test Cases Case Type Expected Actual Pass/Fail
Number Result Result
1 Customer 1.Non The system Non- Pass
Login Registered must not Registered
User allow a non- user failed to
registered login in
user to log in
2 Customer 2.Registered The system The system Fail
Login User must allow a failed to log
registered in a user
user to log with valid
on provided and correct
the user user
credentials credentials
are valid and
correct
3 Page redirect User Detail The system The system Pass
must redirected
redirect the the display
user to the to the all
correct Page user details
4 Loan Details Enter The system System Pass
customer should not should
loan details allow for provide the
adding other customer’s
details loan details

4.11 Deployment Design

The system deployment will include creation of a production database on the database
server. This will be a Microsoft SQL server database. The application server and the web
server will be a single box virtualized with the web server in the DMZ (de-militarised
zone). The application will be installed/deployed for Production. Initially the system will
be available under a controlled pilot run with selected customers. Once the pilot run has
been certified to have been a success, it will be connected to the bank’s website so that
when the users click on apply for loan it will redirect them to the online loan application
and verification system. Deployment diagrams are used to visualize the topology of the
physical components of a system where the software components are deployed.

4.11.1 Deployment diagram

Application &Web Server

Database Server

Fig 4.18 Deployment diagram

4.12 Summary
The system design phase covered many design aspects of the proposed system. The
inputs, processes and output of the proposed system were clearly highlighted.
The architecture design showed how the proposed system was physically designed. This
chapter also introduced the database design which covered the data modelling, database
architecture and entities relationships. Testing design, backup design, security design and
deployment design of the proposed system were clearly presented in this chapter.
 ….notes…

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CHAPTER 5: IMPLEMENTATION
5.1 Introduction
This chapter deals with the implementation of the proposed system. This involves dealing
with tasks which lead to a fully operational system. The system was designed in the
previous chapter and the implementation stage results in the building of the system. The
conversion method, the testing of the system, training of users and the system
specifications were all covered in this chapter.

5.2 System Specifications

5.2.1 Software Specifications
The goal of the coding phase is to translate the design of the system into code in a given
programming language. This system was developed with ASP.NET. This is a very
important since developed programs reduce the testing and maintenance tasks. The
application will be deployed onto the server first for testing before being deployed for
Production once all tests have been certified to have passed.

5.2.2 Hardware Specifications

The system requires that a user (customer) have a suitable PC or laptop which connects to
the internet. Entry level specifications of PCs and laptop are adequate to use this system
however it is recommended that Windows 7 or higher and at least 1GB RAM. The
organisation’s website is accessible through any of the browsers that currently exist.
There is no defined hardware specification for the PC however the following
specifications already exist within the organisation for the staff of CBZ Bank. The
specifications are listed below:

HP Probook 650 laptop Intel® Core™ i5-4210M CPU @260GHz 8GB installed memory
(RAM) Windows 10 Enterprise 64-bit Operating System.
HP Pro3400 Series MT desktop Intel® Pentium® CPU G630 @2.70GHz 4GB installed
RAM Windows 7 Enterprise 32-bit/10 64-bit Operating System
The hardware specifications for the servers used to house the systems are listed below:
HP ProLiant DL380p Gen8 server Intel® CPU e5-2690 @2.9GHz (Dual processors)
192GB installed memory (RAM) running Windows Server 2012 Enterprise Operating
System. MSSQL Server 2014 for Database

5.3 System Testing

Intensive testing was done in order to make sure that all components of the database were
functioning as required. This involves numerous methods of testing so that the system
could meet the user specifications. The diagram below shows the procedure in testing.

Figure 5.1 showing the testing process to be used

 Unit Testing-During unit testing each class on the system was tested to see if it
performed as per requirement. Each component of the system was tested
individually to ensure its functionality and integrity.
  Module Testing-In this case each module was created separately and tested
separately then linked to form one. This testing strategy was instrumental in the
understanding of all the validation that needed to be coded as per module.
Module testing was rather the test of related unit components of the system.
Execution paths, error-handling paths, normal, abnormal and extreme data were
thoroughly tested.

This method of testing combines dependent components and tests them together. A
collection of procedures and functions were tested together. A single component can be
tested without other system modules. Usually module testing is done using the set
objectives to measure the reliability and functionality of our modules. In this type of
testing modules such as the lost items records were tested for their dependency on results
and found items modules. The idea behind was to check if the system was giving the
appropriate results after the user queries it. The system was capable of producing the
project objectives and therefore concluded to be working properly.

 Subsystem Testing-System modules that were related formed system subsystems

and these were tested for data, stress, and error integrity. The system database
was also tested as a subsystem on its own. This is also called link testing. It tests
a collection of modules, which have been integrated into subsystems. It ensures
job streams are correct. There is detection of interface mismatches and rigorous
exercises of the interface between programs. The modules, which are linked
together were tested, in this case the tests’ module was tested in accordance to the
results module.
 System Testing-This involved testing of the entire information system and it
includes all processing situations. The sub modules tested above are integrated to
make a system. These were tested to find if there were any errors, which would
hinder the performance of the system as a whole. Live data was used and there
was verification that the system worked correctly.
The integrated system was then tested during the system testing stage. Methods used to
test the whole system were: defect testing, white box and black box testing
  Black box testing. This is a testing technique having no knowledge of the
internal functionality/structure of the system. It is also called closed-box. This testing
focuses on testing the function of the program or application against its specification.
Advantages of Black box testing
i. Tests are done from a user’s point of view
ii. Helps to expose any ambiguities or inconsistencies in the specifications
iii. Test cases can be designed as soon as specifications are complete.
Disadvantages of black box testing:
i. Without clear and concise specifications, test cases are hard to design
ii. There may be unnecessary repetition of test inputs if the tester is not informed of test
cases the programmers has already tried.
iii. Only a small number of possible inputs can actually be tested. To test every possible
input stream takes forever.

 White box testing. This focuses specifically on using internal knowledge of the
software to guide the selection of the test data; it allows to test parts of the program. It is
also known as glass-box testing. White box testing was used for testing levels like unit
testing, integration testing and system testing.
Advantages of white-box testing:
i. It revealed errors in hidden code and hence assisted the programmer to fix the code.
ii. It helped the programmer in optimizing the code by removing the extra lines of code
which could bring in hidden defects.
Disadvantages of white box testing
i. In-depth knowledge about the programming language was necessary for white-box
testing.
ii. It proved not to be realistic to be able to test every single existing condition of the
application and some conditions were left untested.
iii. The test focused on the software as it exists and missing functionality may not be
discovered.
 In black box testing, the testers were testing software from the user’s point of view.
Testers included the loan officer, salaries officer and other employees who were testing
on behalf of the bank customer. In white box testing, the programmer (tester) evaluated
the code and internal structure of the programs. The tester tested all programs to see if
they produced results that they were set out to produce. The tester checked to see if an
unsuccessful login (were a wrong password or wrong user login credentials) produced an
error message. The tester also tested to see if when wrong credentials were supplied, no
access was allowed into the system.

 Defect testing-This strategy is going to be used to test the system so that defects
are discovered before the system is delivered to the end users .A successful defect
test will cause the system to perform incorrectly hence exposure of the defects.
This test demonstrates the presence and not the absence of the defects, e.g.
entering wrong data types for different variables, if it is accepted then defects are
present thus need to rectify the system for proper execution of tasks.

Figure 5.2 showing the defect testing process

 Test data: input which has been devised to test the system.
 Test cases: input and output specifications and the statement of the function under test.
 Design cases: improper inputs designed to test for defects
 Test results: the outcome attained after testing the test data.
 Test reports: final outputs, which reveal the defect test.
 Conclusion on System Testing
After the test results are presented to management and the status of all required
documentation is analysed, work on the installation phase will begin. Information
pertaining to detailed time schedules; cost estimates and staffing requirements will also
be presented to management for approval. Their recommendation allows proceeding to
the implementation phase. After the test presentation is approved then a preparation of
the schedule for system installation will be done, and evaluation be established.
In conclusion, the system testing was a success as the system manages to produce results
as expected and as laid out in the system objectives. The system has the capability of
handling large volumes of data as one of the expectations. The system has also the
capabilities of handling all such kinds of error because of validation procedures it has.

5.3.1 Testing Results

Testing is intended to cover all areas affecting the system. Performance testing was done
to help identify bottlenecks in a system, establish a baseline for future testing and support
a performance tuning effort. They also help stakeholders make informed decisions related
to the overall quality of the application being tested. The results from performance testing
and analysis can help to estimate the hardware configuration and scale required to
support the application when the system “goes live” to production. Throughput which is
the rate at which a system achieves its goal. The goal of the test is mitigating risk through
the prevention of defects.
Security testing was done to identify areas which had vulnerabilities. A secure system is
beneficial to all stakeholders and customers want to be associated with a fully secure
system. Different security tests were and will continue to be carried out. These involves
testing the security of the backups, security on the server side to prevent sharing of
system users and passwords for example the use of user ‘sa’ in the MSSQL database.
Access into the system and into different modules is tested to prevent unauthorised
access. Testing of services provided by the system is of paramount importance.
Information that is secure satisfies 3 main things which are:
 Availability: Information is accessible by authorized users whenever they request the
information.
 Integrity: Only authorized users can change the information.
 Confidentiality: only authorized users can view the information.
The services provided by the system have to match the original goals and objectives.

5.3.2 Verification and verification

Verification is the process that was done to make sure the product satisfied the conditions
imposed at the start of the development phase. Validation was the process done to make
sure the product satisfied the specific requirements at the end of the development phase
(Rentala, 2017).

Fig 5.3 username-password validation

Fig 5.4 first name cannot be null

Fig 5.5 Null Date of Birth validation

Fig 5.6 Loan Class missing validation

 Fig 5.7 approving with no selection chosen

5.4 Installation and Conversion Plan

The system will first be installed on UAT servers so that selected users can test the
system. The application will be installed on the webserver and the database on the
database UAT servers.
5.4.1 System training
Since this system is automated and the users are coming from a manual system, training
is of paramount important for all concerned to fully appreciate the benefits of automation.
The internal staff will be trained in all aspects of the system. The contact centre staff will
be trained mainly on the modules that affect the customer as they will provide 24/7
support once the system goes live. The loan team and the salaries team will also be
trained on roles which affect their departments. The IT team will also be part of the group
that will be trained on the technical aspect of the system together with the non-technical
areas. This empowering of the IT team will lead to many benefits once the system is on
Production. Two types of documentation are planned and these are
 System documentation (for maintenance programmers or technical persons). This
contains detailed information about system’s design specification, its internal working
and its functionality.
 User documentation (for users). This will consist of written or other visual information
about an application system, how it works and how to use it.

5.4.2 Training schedules/plans

The training plan involves all selected user making use of the organisation’s training
centre where they will do a full week of training. The idea is a train the trainer method.
Those trained under this programme will assist others especially when they start user
acceptance training. Draft manuals will be created but final copies can only be certified
once all UAT is completed and the lead tester/UAT leader has confirmed success of the
tests.
5.4.3 System installation and User Acceptance
Once the first round of training has been completed and if no major challenges are
encountered, the system will be availed for a full UAT. This will determine whether the
system will go live or not. The business owners of the system will need to verify is their
requirements have been met. The test cases will be designed and documented based on
the sample test case provided in the previous chapter. Once test cases have been signed
and handed over, design to signoff the testing phase will be made.
5.4.4 Conversion Methods
Various conversion strategies were evaluated and these changeover strategies are clearly
outlined below. Different strategies exist for system installation and conversion. System
changeover is the process of putting the new information system online and retiring the
old system. The goal is to choose the most appropriate conversion strategy depending on
the system being implemented. The following were considered but since the current
system is manual the direct changeover method was chosen.

Figure 5.8 showing direct changeover

 This strategy is whereby there is the replacing of the old system entirely with the new
system on a set date. This strategy is a very risk approach if serious problems with the
new system are found. There will be no other system to rely on thereby taking business to
a halt. The cost of the corrections may be expensive; however it is a cheaper way if new
system works properly.
Advantages of direct changeover
 Users have no possibility of continuing using the old system.
 It is cheap to implement.
Disadvantages of direct changeover
 Long delays might ensue if errors occur because there is no alternative
 There is no adequate way to compare old system results and the new system.
Pilot changeover
This strategy is when the new system is being introduced to only a limited are of the
organisation such as a single department or operating unit. When this pilot version is
complete and working smoothly, it will then be introduced to the entire organisation
either simultaneously or in stages.

Figure 5.9 showing pilot changeover

Advantages of Pilot changeover

Problems can be detected and contained rather inflicted simultaneously on all
departments or sites
Disadvantages of Pilot changeover
Even when one site is successful, each site will have its own peculiarities to work through
and they must be handled accordingly.
Phased changeover
 This strategy can also be called gradual conversion. This approach attempts to combine
area two plans without incurring all the risk. In this plan, the volume of transactions
handled by the new system is gradually increased as the system is phased in.

Figure 5.10 showing phased changeover strategy

Advantages of Phased changeover

 Allows users to get involved with the system gradually.
 There is possibility of detecting and recovering from errors without much downtime.
Disadvantages of Phased changeover
 It takes too long to get the system into place.
 Inappropriateness for conversion of small uncomplicated systems.
Parallel Conversion
This method involves both the old system and new system running concurrently for an
assent period of time. Data is processed simultaneously in both systems and then results
are compared to ensure that all major problems have been solved in the new system
before the old system is discarded.

Figure 5.11 showing parallel changeover

Advantages of Parallel Conversion

1. Smooth transition
2. It offers a feel of security to users who are not forced to abrupt change to new system.
3. It is possible to check new data against old data to check any errors in the processing of
the new system.
4. If errors are encountered in the new system reference is made to the old system without
disruption.
5. End-users can be trained to use the new system whilst the old system operates.
6. There is easy comparison of results produced by both systems and decisions can be made.

5.5 Maintenance
A system that has been implemented will need to be maintained. The main objectives of
maintenance are to provide maintenance and improvements for the new system as well as
support users and help them to obtain value. Most of the time maintenance consumes
more time than the time consumed in the development.
Three maintenance strategies exist
 Corrective maintenance
Corrective maintenance involves correcting faults or bugs that did not reveal themselves
during testing. This will be an on-going activity.
 Adaptive maintenance
This is modifying the system so that it conforms to changes to the environment
 Perfective maintenance
To correct or better or improve on system’s performance by responding to users’
additional or changing needs.
 Recovery maintenance
Recovery maintenance involve a plan to fix a damaged information system as quickly as
possible. To achieve a faster recovery process, the same system will be kept at the
disaster recovery site.

5.6 Performance Analysis

The system is divided into three processes which are data input, data processing and
output. A reliable system is one which allows inputs and processes them at an accepted
speed to produce expected results. Security of data is very important and data
confidentiality is one of the strengths of this system. The nature of the system designed
and developed results in faster processing. The automated online loan application and
verification system speeds up processing which have been manual. This automation
allows customers to apply from their own locations and this gives it an advantage over
the old system. As long as there is a stable internet connection performance of this system
will be within acceptable levels.

5.7 Recommendations for future developments

There is further work which needs to be carried out on the system due to various reasons.
 To capture the unbanked or other customers from different banks, the system in future
should offer loans even to customers who have not been clients. This will increase the
market share of the bank.
 Due to time constraints the online loan application and verification system was not
fully integrated with the main banking system. Fully integrating these two systems
would result in streamlining further a number of processes. Web services will need to
be created to pull information from the banking system or to push information to the
banking system.
 I will make online EMI payment to company.
 I will also make live chat with the client.
 I will also make live chat with the newsletter mailing system for user.
 I will also add news subscription field.
 Add online transaction.
 Add email facility.
 Add SMS facility.

5.8 Results
Customers’ ever changing needs resulted in this project becoming a necessity.
Competition in the financial services sector means that organisations should continue to
innovate to stay relevant. The emergence of 24/7 means customers requires services to be
available at any time and from anywhere. One of the bank’s strategies is smoothening of
processes and automation of manual processes is one such way of streamlining processes.
With this in mind the automation of the loan application and verification process was a
worthwhile project whose success is success for all stakeholders.

5.8.1 Findings
 During the fact finding mission resistance to change was one of the things
encountered. Even though change improves the ease of doing business, people
generally do not like to change their way of life. Even employees were fearful that
reduction of processes might leave them with little to do and in future might make
them redundant.
 Systems project bring their own challenges and assist in exploring new things. The
fact finding also highlighted other developments which need to be planned for and
done in the future.
 Efficient utilisation of resources hardware, software or human was an interesting
discovery which if future explored would result in the organisation reducing un-
necessary expenditure.
 The project also showed that using technology, organisations can become paperless
and this not only cuts costs but also saves the environment. In this day of technology,
it was observed that manual processes should be reduced to as few as possible.

5.8.2 Goal Achieved

The original objectives have been fully met.
 Customers need to be able to track their application on their own without having to
phone or visit the branch every time. In line with bring banking service to the people
and 24/7 this system brings convenience to the customers.
 Developing a system that allows online applications reduced the tiring and long
manual application process which meant a customer had to visit the branch. This
system assisted in decongestion of the banking halls, removed hassle of going to the
branch and also assist the customers to save on costs which include travel.
 Providing a speedy service is an objective of all service industries. Competition is
tough and customers required speedy service all the time. The speed at which
customers can apply, get responses whether negative or positive within the shortest
possible time.

5.8.3 Conclusion
Although the project took some time due to some software problems, it was an overall
success. It was a fascinating and interesting experience to undertake this project. Many
things were learnt especially implementing the theory part learnt from previous courses
and subjects. It was a long road but to complete such a mammoth task was worthwhile.
The entire project from requirements, analysis, feasibility, design and implementation
was done within the set guidelines to complete this project.
 References
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Conducting In-Depth Interviews”, Pathfinder International Tool Series
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at: http://www.backupreview.com/gfs-backups/ [Accessed 20 Sep. 2017].
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[online] Available at: https://www.innovativearchitects.com/KnowledgeCenter/basic-IT-
systems/system-development-life-cycle.aspx [Accessed 10 Aug. 2017].
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https://en.wikipedia.org/wiki/Cost%E2%80%93benefit_analysis [Accessed 10 Aug.
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https://www.slideshare.net/akegoistik/testing-35043847 [Accessed 1 Sep. 2017].
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https://www.slideshare.net/rakhimukherji/entity-relationship-diagram-53652398
[Accessed 20 Sep. 2017].
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control. Available at: https://www.slideshare.net/shrutipen/information-system-
implementation-change-management-and-control-57164249 [Accessed 20 Sep. 2017].
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 Appendices
Appendix-A
a) User Manual
To change password click on change password and the screen below will emerge

Once a client has successfully submitted a loan application the screen like below should
emerge
Only accessible to those with rights for verification
To approve/decline incoming loan requests which have been verified, select processing
and the below screen will emerge. The approval/verification team cannot change any
client details except the loan amount which is approved.
Once a loan has been approved, it will be removed from the incoming requests screen
 Appendix–B
b) SAMPLE OBSERVATION GUIDE

Observation guide schedule.

Date: ……………………………………………
Time: ……………………………………………

OBSERVATION
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CONCLUSION……………………………………………………………………………
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Appendix-C

c) QUESTIONNAIRE

Questionnaire cover letter

CBZ Bank
Smart lending System Survey

Dear Sir/Madam
CBZ Bank has recognized the importance of customer convenience in the loan and
mortgage application process. As part of trying to automate these processes, we are
asking customers and internal staff dealing with loans and mortgges to contribute by
filling out a questionnaire on the operations of the current system and what they think
should be done to address any challenges inherent in the system. The results of this
questionnaire will be used as requirements to develop a new automated system. This
questionnaire will take approximately five-ten minutes to complete. There are no right or
wrong answers to these questions. It is your own responses that are important.
Responses to the questionnaire will be kept anonymous and confidential.
Please return completed questionnaires by Wednesday, 10 January 2018.
Return questionnaires to Alfred Nzombe 2nd floor Sapphire Branch, Speke
Avenue/Angwa Street, Harare or by email to anzombe@cbz.co.zw

Thank you for your valuable participation.

Yours faithfully,
Alfred Nzombe
for and behalf of CBZ Bank.
Please return no later than Wednesday, 10 January 2018
 CUSTOMER Questionnaire:

This questionnaire intends to collect information about the loan application process.
Feel free to answer it as objectively as possible.
INSTRUCTIONS:
Please do not write your name on this questionnaire.
Tick where appropriate and fill in where spaces are provided

1) Gender M F

2) Age group 18-25 26-30 31-40 41 +

3) Does the current system serve you efficiently and effectively?

Agree Disagree Other

4) What are the areas that need to be looked at?

5) Is process easy and completed within your acceptable timelines?

Agree Disagree Other

6) What do you think is the reason for this if any?

7) How well does the staff serve you?

Other Comments / Recommendations

 Bank employees Questionnaire:
INSTRUCTIONS:
Please do not write your name on this questionnaire.
Tick where appropriate and fill in where spaces are provided

1) Gender Male Female

2) Age group 21-25 26-30 31-40 41 +

3) How long does it take to process an application and why?

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
___________________________
4) How long does it take for the loan to be paid to the customer and why?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
 ________________________________________________________________________
___________________________

5) What do you think should be done to improve the system?

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
______________________________________________________________
6) How well do your customers supply the information required to process a loan
application?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
___________________________

7) What is required for the bank to speed up this process

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
 ________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
___________________________

8) Are the reports generated on a daily basis sufficient?

Agree Disagree Other

Other Comments
 Appendix-D
d) Interviews
Interview questions for customers
1. How long have you been banking with CBZ Bank?
2. Have you applied for a loan before? If YES, what kind of loan was it?
2a. briefly describe the experience?
2b. How long was the application process?
2c. Did you supply all the requirements at the time of asking?
2d. in a few words summarise the entire process
3. Do you think all the information on the application form is necessary? If not what do you
think is not necessary?
4. Are you familiar with the loan products offered by the Bank?
5. What areas do you fee need improvement?
6. Would you recommend the Bank to others?
7. Is there anything else you would want to tell the interviewer about the loan process?
8. What are your views about automating the loan process to make it online?
9. Do you feel your information is safe if you supply your details online?
10. Will you be willing to use the new system?
Interview questions for bank employees
1. How long have you been working with the current system?
2. Describe the entire process from when a customer enters the bank to when the loan is
approved or rejected?
3. Briefly describe your experience using the current system?
4. What are the strengths and weaknesses of the current system?
5. In your view what needs to be changed or improved?
6. How do you feel about automating some of the processes?
7. Do you believe if automation? Why?
8. Do you think your customers will like automation?
9. Which processes would you want automated?
10. Do you believe automation will make your job easier and efficient?
 ……Notes……
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