Chapter 2

REVIEW OF RELATED LITERATURE

Foreign Literature

According to CVISION (1996-2016), “an Automated Records Management System is the

arms that will hold the business in its goal to a paperless office environment. From the acronym

itself, the ARMS is that management process that will protect information and data to ensure

that all the records and the files in the system database of the business organization is protected

and easily accessed by users in the framework. There are certain areas or processes that the

automated records management system will affect in its inception to the business organization.

For one thing, the system will work in the active records section. This will mean that it can give

you access and help people manage the most current documents and data that the operations

are handling. The second sector would be the data protection and vaulting, which is the area

that will ensure all the files are properly filed and archived for record keeping purposes. Simply,

the automated records management system is a method that will do all the filing and

management of documents for you.”

According to K.A. Fareed (2015), “The Benefits of financial management information

system, whether it’s a small, medium or a large business, the need and importance of

implementing effective financial management information system cannot be underestimated, as

it adds value to an organization by improving the functioning state of a business. Financial

management information system is of great value and importance for a business organization. It

involves collecting and analyzing financial data which is used in running a business in a way as

wanted as well as making good financial decisions. Financial management information system
is of great help and assistance in tracking the financial events and summarizing the information.

Another important benefit that is attained from implementing the financial management

information system is that it maintains the transparency of information which is necessary to

determine what is happening with the business financially and to evaluate various aspects of a

business.”

According to Straňák (2013), “Customer data are one of the most important assets of

every business. Effective storage and management of customer data is cornerstone of every IT

solution supporting company’s business. It goes without saying that customer data are

especially high-valued possessions for financial institutions and banking sector. In financial

enterprise, it is equally important to collect information on customers as maintaining it and

keeping it up-to-date. Furthermore, customer data have to be available for other parts of the

complex IT solution where they need to be accessed or even modified. This brings up several

issues, such as data synchronization, that need to be addressed. This thesis will focus on

customer data management of loan providing companies, where customer data is used in almost

all processes from contract origination, client support to debt collection. A system of particular

company was chosen for detailed analysis. The system also serves as reference model upon

which all the improvements are designed.”

Local Studies

According to Adtiz et al., (2010) “Muslim Kristian Vendors Association Incorporated is a

micro lending and microfinance association for small business. The organization aims to help

people star a small business and increase to bigger assets. Applicants of the association much

provide the requirements for them to become a member. MUKRISVA is currently using a

manual operation. The association posts a weekly announcement for the weekly meeting,
making invitations to each member, club activity, receiving comments, suggestion and question

within the meeting and compiling hard copy of records and documents. These transactions make

the club unorganized and time consuming. Nowadays, technology is evolving and improving.

The researchers proposed the Online Loan Application and Information System for Muslim

Kristian Vendors Association Inc., which will help to improve the efficiency and effectiveness in

information dissemination. The fast accessibility of documents and time management is due to

improve the transactions and getting work lessen.”

According to Larosa (2016), “Lending or ‘pautang’ has been one of the major business

producing income of the Indian community here in the Philippines. The term ‘5-6’ has been

tagged to a person who lends money, which is also commonly called ‘Bombay’—An Indian

national, typically wearing a ‘pagri’ or turban wrapped around the head, and riding on a

motorbike, or sometimes walking with umbrella.5-6 simply means, the amount one borrowed

must be returned with 20% interest added. Example: Someone borrowed 1,000, then he/she

should pay it back with 20% interest: 1,000 x .20 = 200. He/she have to pay 1,200 in return.

But, it is very clear in The Constitution of the Philippines: section 2. No person shall be

imprisoned for debt or non-payment of a poll tax.Because of this prevailing law, many lenders

don’t have security over the money they lent. In fact, the lender himself might be the one to go to

jail by committing Light Coercion that is stated in the Revised Penal Code. Art. 287 The only

way a lender can legally claim something from a delinquent borrower is if he has a Court Order

that is called Writ of Execution. But this is a tedious process, and sometimes to the disadvantage

of the complaining party.What a lender can do to avoid this kind of scenario is to get collaterals

from the borrower as a security for his/her money. Sometimes agreement between the lender
and the borrower are put down in paper for legal purposes. There are now small court claims

which a lender can file against the offending party and documents or proof are highly needed.”

According to Taeza (2004) “Having this proposed Computerized Loan System is a

solution to the proprietors that will make them confident in having a trustworthy service that

that client will soon recognizes such faster growing business, especially the pawnshop. Loan

system gives the proprietor’s good alternative that ready in competing on this creative modern

technology. This proposed system is a friendly user, easy to understood and handles the system

flow. There will be a user’s manual provided for more information to be needed by the user. And

also there will be training for the new user to be conducted before the implementation of the

system”.