GAYATRI VIDYA PARISHAD COLLEGE OF ENGINEERING (A)

(Affiliated to JNTU K, Visakhapatnam)

2023 – 2024
COMPUTER SCIENCE AND ENGINEERING
(CSE-4)

PROJECT GUIDE : Dr. CH. AVINASH

Automated Financial BATCH NUMBER - 4

Communication R. Phani Raveendra

20131A05L1
System for MSME’s K. V. Sylesh
20131A05Q5
Y. Nivas
20131A05R2
V. Harshith
21135A0524
 ABSTRACT
● Introduce the project as an innovative solution designed to revolutionize financial
communication for Micro, Small, and Medium Enterprises (MSMEs). Highlight the
transformative impact on streamlining payment processes and fostering timely
transactions.

● Emphasize the project's goal of empowering MSMEs by providing them with a

sophisticated Automated Financial Communication System. This system aims to equip
businesses with efficient tools for credit management, enhancing financial stability and
operational resilience.

● Briefly touch upon the challenges faced by MSMEs in the current financial landscape,
emphasizing the limitations of traditional communication and credit management
methods. Set the stage for how the proposed solution addresses these challenges and offers
a more effective approach to financial interactions.
 INTRODUCTION TO PROJECT TITLE
• Our title Automated Financial Communication System is to revolutionize payment
processes and foster timely transactions for Micro, Small, and Medium Enterprises
(MSMEs).

• By leveraging cutting-edge technology and data-driven approaches, our system

empowers MSMEs with the tools and insights needed to make informed financial
decisions and optimize their cash flow.

• Through seamless integration with financial institutions, real-time

communication channels, and advanced analytics capabilities, our system
provides MSMEs with greater access to credit, enhanced risk management,
and improved financial efficiency.
 CURRENT STATUS OF OUR PROJECT
• The project is currently in the development phase, with active work ongoing across backend,
frontend, and database components.

• Significant progress has been made in implementing backend functionalities, including user
registration and credit line calculation, using technologies like Mongoose and Node.js.

• The frontend interface, built with React, is in development, focusing on user interaction and data
presentation to ensure a seamless user experience.

• MongoDB serves as the database for storing client information and credit-related data, with the
necessary schemas and collections set up for efficient data management.

• Concurrently, efforts are underway to integrate a machine learning model for credit risk
prediction, adding advanced analytics capabilities to the system and enhancing decision-making
processes.
 EXISTING SYSTEM AND ITS DRAWBACKS
Manual Credit Management: Many MSMEs currently rely on manual credit management processes,
involving paperwork and time-consuming tasks for assessing creditworthiness and managing
financial transactions.

Traditional Banking Systems: Traditional banking systems often pose challenges for MSMEs,
including complex application procedures, lengthy approval times, and limited access to credit
facilities.

DrawBacks

• Risk of Fraud and Default

Manual credit management processes are susceptible to fraud and misrepresentation, posing risks to
lenders and financial institutions.

• Limited Financial Literacy

Many MSMEs lack adequate financial literacy and understanding of credit management principles,
making it challenging for them to navigate the credit landscape effectively.
 PROPOSED SYSTEM
• Our proposed system aims to revolutionize credit management for Micro, Small, and Medium Enterprises
(MSMEs) through automation and technology-driven solutions.

Credit Assessment Automation: Automated processes for assessing creditworthiness based on predefined criteria
and data analysis, reducing manual effort and improving accuracy.

Real-time Data Access : Integration with financial databases and APIs for real-time access to financial
information, enabling informed decision-making and risk assessment.

Customized Credit Solutions : Tailored credit solutions and recommendations based on individual MSMEs'
financial profiles, business needs, and growth aspirations.

Communication Channels: Seamless communication channels for MSMEs to interact with financial institutions,
access support services, and receive timely updates on credit-related matters.

Analytics and Reporting: Advanced analytics capabilities for monitoring credit performance, identifying trends,
and generating actionable insights to optimize credit management strategies.
BLOCK DIAGRAM
SOFTWARE AND HARDWARE REQUIREMENTS
Software Requirements Hardware Requirements

 Backend development using Node.js  Servers for backend infrastructure

 Database server for storing user and financial

 Database: MongoDB data

 Front End development using React.js  Networking equipment for secure data
transmission
 API development using REST
 Load balancer (optional)
 Communication channels: Twilio

 Machine Learning: Sci Kit, PyTorch

 IMPLEMENTATION
• The system automates credit assessment processes, saving time and effort for MSME owners.

• Backend Development: Utilizing Node.js, Express.js, and Mongoose for efficient data processing
and management.

• Frontend Interface: Employing React for modular UI components, emphasizing intuitive

navigation and responsive design.

• Database Management: Leveraging MongoDB's document-oriented data model for

flexibility and scalability.

• Machine Learning Integration: Integrating scikit-learn and TensorFlow for automated credit risk
assessment.

• API Integration: Implementing Representational State transfer Application Programming

Interface endpoints for seamless frontend-backend communication.
 RESULTS
• The system automates credit assessment processes, saving time and effort for MSME
owners.
 CONCLUSION

• Our Automated Credit Management System for MSME Sector offers a transformative
solution for improving financial management processes within micro, small, and medium
enterprises (MSMEs).

• Through its innovative features, technological advancements, and commitment to

empowering MSMEs, our project seeks to drive positive change and create lasting impact
in the realm of financial inclusion and economic growth.

• By automating credit assessment, client onboarding, and payment tracking, we empower

MSME owners with the tools and insights needed to make informed financial decisions
and optimize cash flow management.
 REFERENCES

• https://www.researchgate.net/publication/348122515_The_role_of_financial_te
chnology_on_development_of_MSMEs

• https://www.researchgate.net/publication/371881388_MSME_Performance_Fi
nancial_Information_System_Work_Productivity_and_E-commerce

• https://www.researchgate.net/publication/368864773_Roles_of_Digital_Transf
ormation_for_MSME's_Growth
THANK YOU!!!