CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

A literature review is a search and evaluation of the available literature in your given subject or
chosen topic area. It documents the state of the art with respect to the subject or topic you are
writing about. A literature review shows your readers that you have an in-depth grasp of your
subject; and that you understand where your own research fits into and adds to an existing body
of agreed knowledge.[CITATION wha \l 1033 ]
A literature review is a critical and in-depth evaluation of previous research. It is a summary and
synopsis of a particular area of research, allowing anybody reading the paper to establish why
you are pursuing this particular research. A good literature review expands on the reasons behind
selecting a particular research question. [CITATION Shu09 \l 1033 ].
 Literature
Review

2.3 Compare
2.1 Theoretical
Between 2.4 Chapter
2.0 Introduction & Conceptual 2.2 Case Study
Existing Summary
Framework
Systems

Premier Bank

Salaam African Bank

Figure 2.1: Literature review map

 Figure 2.1: Literature review map

2.1 Theoretical and Conceptual Development

The Bank Holders Account Information System is an application for maintaining a person's
account in a bank. In this project I tried to show the working of a banking account system and
cover the basic functionality of a Bank Account Management System. Creating and managing
user account is a challenge of any IT firm. Currently banks use the manual method of
documenting and managing user accounts. This system has proven to yields many faults as there
are always mismanagement if records. Some software already in place is not functional enough
and does not have the required functionalities. To develop a system for managing user accounts
is necessary. This project has been developed to carry out the processes easily and quickly,
which is not possible with the manuals systems. The project analyzes the system requirements
and then comes up with the requirements specifications.

Design

Design a plan or drawing produced to show the look and function or workings of a building,
garment, or other object before it is made. Design to make or draw plans for something, for
example clothes or buildings.[ CITATION des17 \l 1033 ]
Software design is the process by which an agent creates a specification of a software artifact,
intended to accomplish goals, using a set of primitive components and subject to constraints.
Software design may refer to either "all the activity involved in conceptualizing, framing,
implementing, commissioning, and ultimately modifying complex systems" or "the activity
following requirements specification and before programming, a stylized software engineering
process." Software design usually involves problem solving and planning a software solution.
This includes both a low-level component and algorithm design and a high-level, architecture
design.[ CITATION Ral09 \l 1033 ].
Implementation

Implementation the act of putting a plan into action or of starting to use something. [ CITATION
imp18 \l 1033 ]
A product software implementation method is a systematically structured approach to effectively
integrate a software-based service or component into the workflow of an organizational structure
or an individual end-user.
This entry focuses on the process modeling (Process Modeling) side of the implementation of
“large” (explained in complexity differences) product software, using the implementation of
Enterprise Resource Planning systems as the main example to elaborate on.
The complexity of implementing product software differs on several issues. Examples are: the
number of end users that will use the product software, the effects that the implementation has on
changes of tasks and responsibilities for the end user, the culture and the integrity of the
organization where the software is going to be used and the budget available for acquiring
product software.[ CITATION sof19 \l 1033 ].

Account

In accounting, an account is a record in the general ledger that is used to sort and store
transactions. For example, companies will have a Cash account in which to record every
transaction that increases or decreases the company's cash. Another account, Sales, will collect
all of the amounts from the sale of merchandise. Most accounting systems require that every
transaction will affect two or more accounts. For example, a cash sale will increase the Cash
account and will increase the Sales account.

The term account is also used in transactions where suppliers sell goods to customers and grant
credit terms such as net 10 days. In those situations, a supplier is selling goods on account and
the customer has purchased goods on account. The supplier has also increased the balance in its
current asset account entitled Accounts Receivable and the customer will increase the balance in
its current liability account entitled Accounts Payable.
Holders

The term “Account Holder” means the person listed or identified as the holder of a Financial
Account. A person, other than a Financial Institution, holding a Financial Account for the benefit
of another person as an agent, a custodian, a nominee, a signatory, an investment advisor, an
intermediary, or as a legal guardian, is not treated as the Account Holder. In these circumstances
that other person is the Account Holder. For example, in the case of a parent/child relationship
where the parent is acting as a legal guardian, the child is regarded as the Account Holder. With
respect to a jointly held account, each joint holder is treated as an Account Holder.

Information

Researchers in these disciplines want tools that manipulate the phenomena of their domains.
These needs have produced ideas about information having varying degrees of overlap, as well
as areas where they fail to intersect. Given the number of definitions or metaphors that have been
proposed for information, how does one compare them? We propose a commonality within these
definitions; this underlying commonality can be defined, studied, and measured.

System

A system is a collection of elements or components that are organized for a common purpose.
The word sometimes describes the organization or plan itself (and is similar in meaning to
method, as in "I have my own little system") and sometimes describes the parts in the system (as
in "computer system").
A computer system consists of hardware components that have been carefully chosen so that
they work well together and software components or programs that run in the computer.
The main software component is itself an operating system that manages and provides services to
other programs that can be run in the computer. A filing system is a group of files organized with
a plan (for example, alphabetical by customer). All of nature and the universe can be said to be a
system. We've coined a word, ecosystem, for the systems on Earth that affect life systems.
The term can be very useful because so many things can be described as systems. It can also be
very un-useful when a more specific term is needed.[ CITATION Mar15 \l 1033 ].
Microfinance
Microfinance, also called microcredit, is a type of banking service provided to unemployed or
low-income individuals or groups who otherwise would have no other access to financial
services. While institutions participating in the area of microfinance most often provide lending
—microloans can range from as small as $100 to as large as $25,000—many banks offer
additional services such as checking and savings accounts as well as micro-insurance products,
and some even provide financial and business education. The goal of microfinance is to
ultimately give impoverished people an opportunity to become self-sufficient.

Bank
A bank is a financial institution licensed to receive deposits and make loans. Banks may also
provide financial services such as wealth management, currency exchange, and safe deposit
boxes. There are several different kinds of banks including retail banks, commercial or corporate
banks, and investment banks. In most countries, banks are regulated by the national government
or central bank.

PHP
PHP is a server-side scripting language designed for web development but also used as a
general-purpose programming language. Originally created by Rasmus Lerdorf in 1994, the PHP
reference implementation is now produced by The PHP Group. PHP originally stood for
Personal Home Page, but it now stands for the recursive acronym PHP: Hypertext Preprocessor.[
CITATION Ler071 \l 1033 ]
PHP code may be embedded into HTML code, or it can be used in combination with various web
template systems, web content management systems, and web frameworks. PHP code is usually
processed by a PHP interpreter implemented as a module in the web server or as a Common
Gateway Interface (CGI) executable. The web server combines the results of the interpreted and
executed PHP code, which may be any type of data, including images, with the generated web
page. PHP code may also be executed with a command-line interface (CLI) and can be used to
implement standalone graphical applications.[ CITATION PHP18 \l 1033 ].
MySQL

MySQL is an open-source relational database management system (RDBMS) based on

Structured Query Language (SQL).
MySQL runs on virtually all platforms, including Linux, UNIX, and Windows. Although it can
be used in a wide range of applications, MySQL is most often associated with web-based
applications and online publishing and is an important component of an open-source enterprise
stack called LAMP. LAMP is a Web development platform that uses Linux as the operating
system, Apache as the Web server, and MySQL as the relational database management system
and PHP as the object-oriented scripting language. (Sometimes Perl or Python is used instead of
PHP.)
MySQL, which was originally conceived by the Swedish company MySQL AB, was acquired by
Sun Microsystems in 2008 and then by Oracle when it bought Sun in 2010. Developers can still
use MySQL under the GNU General Public License (GPL), but enterprises must obtain a
commercial license from Oracle.[ CITATION Mar131 \l 1033 ].

2.2 Case study of the research

IBS Bank is Somalia’s premier global commercial and Investment bank with its headquarters
in Mogadishu, the capital city of Somalia. IBS was incorporated in July 2013 and licensed by
the Central Bank of Somalia (CBS). We are Somalia’s premier global investment and
commercial bank with an entirely Sharia’s compliant portfolio of products & services. IBS
Bank offers full banking services including retail, private, corporate, and investment banking
services to their clients. Since its inception, IBS practice international standards for all their
product offerings to align the Somalia banking system in line with the international banking
system.
 Vision

To be a leading, innovative and regional Islamic financial institution adhering to the highest
sharia principles and international banking standards; leading in the positive transformation of
people’s lives in East Africa.
 Mission

To positively transform peoples’ lives by providing quality Sharia’s-compliant financial services

through innovative, efficient and reputable practice.

2.3 Compare Between exiting system

This system model would help to create, design and maintain the proposed system because it
summarizes the main steps to be taken in conjunction with the corresponding deliverables within
computerized system validation framework. Microfinance Bank software would manage
Customer Banking and collections for the microfinance bank. Account and Bank would use these
applications to centralize and automate essential business processes including: accounts
receivable, payment processing, Customer data sharing, document, management, electronic
claims, collections and financial reporting. This software would typically allow for the tracking
of Customer demographics, background data and insurance information.
2.3.1 Premier Bank

Premier Bank is a privately owned Sharia compliant commercial bank incorporated in Somalia in
2013 and licensed by the Central Bank of Somalia in 2014. We believe in the promise of a new
Somalia. We all have a role to play in rebuilding Somalia. Together, we can make a difference. It
is this philosophy that guides our efforts to help (in our own small way) rebuild Somalia and
encourage economic and community development.
Our diverse knowledge of local financing requirements enables us to meet and service the needs
of Somalia’s dynamic economy by introducing modern banking practices to the country. We
offer comprehensive one-stop financial solutions to our customers who include private and
government institutions, corporate and SME businesses as well as private individuals in Somalia.
Our financial solutions offering includes Retail Banking, Business and Corporate Banking,
Mobile and Internet banking, ATM Banking, SWIFT transfers, International Money Transfers
and so much more.

Figure 2.2: Premier Bank

2.3.2 Salaam African Bank
Salaam African Bank is one of the leading providers of financial products and services in the
East African region that are fully adherent to best business ethics.
It was incorporated in 2007 and commenced business operation in December 2008.The Bank is
regulated by the Central Bank of Djibouti.
Salaam African Bank strives to be the pioneer of business ethics compliant services through the
use of state-of-the-art technology and up-to-date financial services
Since its inception in 2008, the bank has made tremendous growth with extensive nationwide
branch networks, ATMs; offering interest free products and services including Current accounts,
savings, Investment Deposit Accounts, Assets Financing, Joint Venture, Capital Investment,
documentary credits and letters of guarantees. It also offers, visa cards, master cards, POS, phone
banking, utility payments and SMS notifications and electronic banking. We have partnered with
other related financial services providers like Master Card, VISA, and relevant associated
merchants.
For over a decade, the Diasporas and the local entrepreneurs in Djibouti have been actively
looking to establish reliable connections with financial institutions throughout the region.

Figure 2.3: Salaam African Bank

Features Premier Bank Salaam African Proposed System

Bank
Login Yes Yes Yes
Registration Yes Yes Yes
Banking Yes No Yes
Report No No Yes
User access Yes No Yes
Modify Customer Yes Yes No
Enter Acc.no Yes Yes Yes

2.4 CHAPTER SUMMARY

This chapter discussed Theoretical and Conceptual Development Design and Implementation
of Account Holders Information System for Microfinance Bank, Case study of the research,
Compare Between exiting system Manual and Banking and Chapter Summary.