COLLEGE OF COMPUTER STUDIES

CHAPTER II

Theoretical and Conceptual Framework

Review of Related Literatures

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

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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
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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
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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”.

Theoretical Framework

Conceptual Framework
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Information Checking Clients

Required requirements

Manually
Data Registration
Gathering Client’s Confirmation via
Data Receipt
Review Client’s
Salary Income
List for Co-maker

Definition of terms