Loan Processing System for Reliable Finance Company - Case Study Example

Student Name Professor Course Name Loan Processing System for Reliable Finance Company Stakeholders The stakeholders in the case study, which is involving Reliable Finance Company are the company’s administrators, the customers or clients who are applying for the loan and those who are repaying the loan, employees of the company and visitors. When developing the new finance processing system, these four stakeholders have to be taken into account. Scope and Boundaries Reliable Finance Company needs to develop a new loan processing system that will be efficient, fast, cost-effective and reliable. The main objective of improving the system is to enhance good interactions and communications between internal and external stakeholders. The newly proposed system will be fit for back office activities of the bank and finance company, which offer a specific type of loan. With the new system, the company’s administrators will be able to manage the loan more efficiently through generating on time reports of customers and their loan details. The company’s administrators will use the system to calculate settlements with immediate feedback. Overall, the loan system will need to be automated with on time updates for customer’s transaction and the updates will be reflected in the Home Office on time. The new online payment processing system will reduce the labor work and errors that have been chronic problem for the current system. Project description The newly proposed finance management system will use an online cloud based system. The system will contain client records that include their personal profile details and their loan details. The system will be divided into two sections. The first section will be configured for admin usage while the second section will be configured for customer usage. The customer usage will also accommodate new customers who will apply for the loan online. After loan approval, the new customer’s will be included in the database and they will be accessing their services online. This system will automate the loan repayment and loan processing within RFC with ability to generate appropriate on time reports. General RFC Loan Management System Flow Figure 1: General RFC Loan Management System Flow Admin User Case Diagram Figure 2: Admin User Case diagram Customer User Case Diagram Figure 3: Customer User Case Diagram The process to be considered for the project This project’s process will consider using a BPMN graphical representation of the international business processing system. The BPMN graphical annotation will assist in visualizing and understanding how the new process will interact among stakeholders of the company (Puhlmann, 77). The role of the diagrams is to assist in organizing the process, which is due for the diagram. The graphical representation will provide a theoretical guideline of how the information will flow among internal network system and how information will flow from external networking system to internal networking system. The theoretical framework will also assist in identifying both efficiencies and inefficiencies that may be found in the system. Through the annotation of the BPMN diagrams, the management will determine whether the proposed system will solve the company’s current problem (Remco, Dumas, & Ouyang, 7115). In the newly proposed system, pools will distinguish between messages that represent information moving from one process to another process. Even though the stakeholder systems will be built over a single networking resources, information flow and databases for administration will be different from information flow and database for clients. The communication system require two participants who are the administrators and the customers, (Sharon & Etzion, 321). However, the third participant is the visitors who do not have their profiles with the company. The visitors will be allowed to access public resources in the system where they can apply and download the loan application without being required to sign up and create their profiles. Once their loan has been approved, they will be required to sign up, create their profiles and access their loan data. Current process model for the payment system The current process is considered a manual process that uses paper work and hard copy filing system. The current process is laborious, prone to errors and makes it hard to track details. The current system does not contain functionalities resources ideal for expansion of the company’s branches to 1000 over the next five years. The current system makes it difficult to generate different reports for the company’s business. New process model for re-designing the proposed payment system The new system will be composed of a process where customers are treated as visitors until they apply for loan and until approval. The customers treated as visitors can access the loan products on the company’s website. After accessing the loan product, the customers will apply for the loan and submit the hardcopy application forms to their branch office. After approval, the customers will be required to track their profiles online. When they register and log in, they will find their details, their loan details including their Equated Monthly Installment (EMI) details. The system will provide for report download for the client, which they can print. From the administration side, the admins will find customers and their loan details without requiring paper work. When the customer has paid, the customer’s loan balance is updated automatically at the point of presenting evidence of payment to the branch office. The strength of the system The new system’s strength include enhancing quick decision making process from the side of the administrator and that of the customer user. The system will enhance consistent of the products, loan repayments process and loan repayment progress for customers. Also, the system allows customers to view any query about their loan, their repayment process and the profile status in terms of rating. If this system will deliver these benefits, it will be considered a system that will save time for customers, keeping them up to date with their loan details, and having them control their repayment time including missed repayments (Karan, Neel & Ravi, 6). The system will provide adequate communication between the customer and the administrator and also capable of providing the reports that are easily generated. The weakness of the system The main weakness of the current loan processing system is that there is no readymade system that will be installed in the company’s database to start working. Therefore, this new system will be created new scratch. Since the team that will create the system will be hired from outside the company, inconsistency is transferring data from hard copy files to the system will be prone to errors. It will take more time to clean and the data and this suggests that the system will take significant amount of time before it is fully ready for usage. The system errors maybe costly to the company’s finance as compared to errors that exist in the manual process. Changes that will improve the payment process To improve the payment process, the reliable finance company will need to automate its system and eliminate the old paper work. All customers should be informed about the new changes and the need for customers to follow-up with their profiles online. Loan application will be completed online with forms that have the customer profile pre-installed as compared to having standard loan application forms (Schaad, Lotz, & Sohr, 139). Second and subsequent loan approval will also be done online where the customer will download, print, sign and guarantor’s sign before handing the form back to their respective branches. For this group of customers, loan approval will be based duly complete online profile, data and records. For first time applicants, they initiate the application process download the application form and hand it over to the office. The first time loan is approved in hard copy where the client/customer’s details are filled online before funds are released. To enhance safety, the company’s administration will be only approved staff who will manage customer records. Complexities when considering the new payment process models The BPMN models for financial processing have various complexities. The system will be based online without having prior knowledge of all the client’s preference. The assumption for this system is that the customer’s expect digital system and their loan processing, repayment and approval will be done online. With this assumption, inconsistency and lack of customer satisfaction will be experienced in the first few months of implementation. Due to lack of standardized system for finance and loan processing, system testing will take large part of the system development process. The system testing will use dummy clients in the first phase, but valid clients will be used in the second and third testing phase. The company will be required to employ an expert of this specific system who know the backbone of the system and who can develop solve any trouble shooting. The full time system administrator maybe costly to the company, but their full time presence will be significant to the system. Works Cited Karan Patel, Thakkar Neel and Patel Ravi. A Project Presentation On Loan Management System. M.Sc. Thesis. Department of Computer Science. GanPat University. 6-11 Dijkman, Remco M., Marlon Dumas, and Chun Ouyang. "Formal semantics and automated analysis of BPMN process models." preprint 7115 (2007). Sharon, Guy, and Opher Etzion. "Event-processing network model and implementation." IBM Systems Journal 47.2 (2008): 321-334. Schaad, Andreas, Volkmar Lotz, and Karsten Sohr. "A model-checking approach to analysing organisational controls in a loan origination process." Proceedings of the eleventh ACM symposium on Access control models and technologies. ACM, (2006): 139-149. Puhlmann, Frank. "Why do we actually need the Pi-Calculus for Business Process Management?." BIS 85 (2006): 77-89. Read More