STEFANO MOSHI MEMORIAL UNIVERSITY

COLLEGE

INFORMATION AND COMMUNICATIONS TECHNOLOGY DEPARTMENT

DIPLOMA IN INFORMATION COMMUNICATION TECHNOLOGY

FINAL YEAR PROJECT 2022-2023

PROJECT TITLE: ONLINE SACCOSS ATM SYSTEM

PRESENTED BY:

NAME REGISTRATION NUMBER

BONAVENTURE DEDE SMMUCo/DITSEP21/020

RAPHAEL MURIANGA SMMUCo/DITSEP21/037

HARUNI BAYNET SMMUCo/DITSEP21/

GEORGE JOEL SMMUCo/DITSEP21/

KAROLINA LAIZER SMMUCo/DITSEP21/030

ANGEL MRINGO SMMUCo/DITSEP21/043

 ABSTRACT

The SACCOS ATM system is the project which is used to access SACCOS accounts in order to
make cash withdrawn. Whenever the user needs to make cash withdraw, they can enter their PIN
number and it will display the amount to be withdrawn. Once their withdraw was successful the
amount will be debited in their account.

The SACCOS ATM system is developed with PHP and back-end database with MySQL. The
SACCOS ATM will service one customer at a time. A customer will be required to enter ATM
card number, PIN both of which will be sent to the database for validation as part of each
transaction. The customer will then be able to perform one or more transaction. Also, customer
must be able to make a balance inquiry of any account linked to the card.

The atm will communicate each transaction to the database and obtain verification that it was
allowed by the database. In the case of a cash withdraw a second message will be send after the
transaction has been physically done. If a transaction fails for any reason other than an invalid
pin the SACCOS ATM will display an explanation of the problem.

The atm will provide the customer with a printed receipt for each successful transaction, showing
the date, time, type of transaction, accounts, and ending and available balance of the affected
account.

i
Table of Contents
ABSTRACT ............................................................................................................................................... i
DECLARATION ...................................................................................................................................... iv
NAME ................................................................................................................................................... iv
REG NO ................................................................................................................................................. iv
SIGNATURE........................................................................................................................................... iv
The above declaration is confirmed by: ............................................................................................... iv
CERTIFICATION ...................................................................................................................................... v
ACKNOWLEDGEMENTS ........................................................................................................................ vi
LIST OF ABBREVIATION ....................................................................................................................... vii
CHAPTER ONE ....................................................................................................................................... 1
INTRODUCTION ..................................................................................................................................... 1
1.1 Background Information ..................................................................................................................... 1
1.1.1 History of ATM. ................................................................................................................................ 2
1.1.2 History of SACCOS. ........................................................................................................................... 3
1.2 OBJECTIVES OF THE RESEARCH ........................................................................................................... 5
1.2.1 General objective ................................................................................................................................. 5
1.2.2 Specific objectives ................................................................................................................................ 5
1.3 LIMITATIONS OF STUDY ...................................................................................................................... 5
CHAPTER TWO ...................................................................................................................................... 6
LITERATURE REVIEW ............................................................................................................................. 6
2.1EXISTING SYSTEM ................................................................................................................................. 6
2.1.1 DISADVANTAGES:................................................................................................................................. 6
2.2PROPOSED SYSTEM .............................................................................................................................. 7
CHAPTER THREE .................................................................................................................................... 8
REQUIREMENT ANALYSIS ...................................................................................................................... 8
3:1 REQUIREMENT ANALYSIS .................................................................................................................... 8
3.2HARDWARE CONFIGURATION ........................................................................................................... 10
3.3SOFTWARE CONFIGURATION ............................................................................................................ 11
CHAPTER FOUR ................................................................................................................................... 12
SYSTEM DESIGN .................................................................................................................................. 12
CHAPTER FIVE...................................................................................................................................... 13

ii
 SUMMARY AND CONCLUSION ............................................................................................................ 13
5:1 SUMMARY ......................................................................................................................................... 13
5:2CONCLUSION...................................................................................................................................... 13
REFERENCES ........................................................................................................................................ 14

iii
 DECLARATION

We are students of Diploma of IT, at Stefano Moshi Memorial University College, declaring that
the project entitled “Saccos Online ATM” is our own work and all the contents presented are
original except which stated by the references and that the same work has been submitted for
award of Diploma.

NAME REG NO SIGNATURE

BONAVENTURE DEDE SMMUCo/DITSEP21/020

RAPHAEL MURIANGA SMMUCo/DITSEP21/037

HARUN BAYNET SMMUCo/DITSEP21/

GEORGE JOEL SMMUCo/DITSEP21/

KAROLINA LAIZER SMMUCo/DITSEP21/030

ANGEL MRINGO SMMUCo/DITSEP21/043

The above declaration is confirmed by:

Supervisor: ___________________ Date: ____________________

iv
 CERTIFICATION

The undersigned certify that he has read and found the dissertation accepted by Stefano Moshi
Memorial University College.

Supervisor: ___________________ Date: ____________________

The above certification is confirmed by the Supervisor:

v
 ACKNOWLEDGEMENTS

First and foremost, we want to express our gratitude to God. God has given us the
strength to believe in our dreams and pursue them. we could never have done it if it
weren't for our faith in you, Almighty.

We would like to express our heartfelt gratitude to our supervisor, ANDREW

MWINGIRA, who provided us with the wonderful opportunity to write this wonderful
project title proposal on the topic "SACCOS ONLINE ATM SYSTEM” as well as
guidance and direction for the project's successfulcompletion.

We would also like to express our gratitude to all of my lecturers whom in one way or
the other for their aid in completing this project on time and with numerous small
details in each section.

Finally, we would want to convey our heartfelt gratitude to all of the teaching, non-
teaching staff members and our fellow colleagues who have contributed directly or
indirectly to the projects successfully.

vi
 LIST OF ABBREVIATION

ATM -Automated Teller Machine

ID -Identification

SACCOS -savings and credit cooperative organizations

SDLC -System Development Life Cycle

PHP -Php Hypertext Preprocessor

SQL -Windows Apache, MySQL, PHP

HDD -Hard disk

RAM -Random Access Memory

UTP -Unshielded twisted pair

HTML -Hyper Text Markup Language

CSS -Cascading Style Sheets

XAMP -cross-platform, Apache, MySQL, PHP and Perl

WAMP -Windows Apache, MySQL, PHP

vii
 CHAPTER ONE

INTRODUCTION

1.1 Background Information

Automated teller machine is an amalgamation of vivid variety of knowledge. In itself it
maintains a huge collection and caters to many different clienteles. Due to this, it emerges
out to be a complex entity.

To carry out various operations in ATM effectively, there arises a need for automation.
The growing awareness of communication technology and its rejuvenating methodology of
information acquisition, processing, storage, retrieval and dissemination has indeed helped
a lot in working towards creating a complete automated teller machine software.

Keeping in view the latest trend in information technology, the main focus is to “Improve
Knowledge Delivery Through Superior Technology”.

This is a full-fledged ATM project consisting of almost all the features required. Here you
have all the features that you require in an ATM. You can add new accounts in the
database. You can delete them or update the list of members.

The most important part of the software is the deposit and withdrawal of money from an
account. There are good browsing facilities using the toolbar and menu.

1
1.1.1 History of ATM.
As is often the case with inventions, many inventors contribute to the history of an
invention. In the case of the ATM, Don Wetzel invented the first successful and modern
ATM in the USA, however 8 he was not first inventor to create an ATM. In 1939, Luther
George Simjian started patenting an earlier and not-so-successful version of an ATM.

An automatic teller machine or ATM allows a bank customer to conduct their banking
transactions from almost every other ATM machine in the world. Don Wetzel was the co-
patentee and chief conceptualist of the automated teller machine, an idea he said he
thought of while waiting in line at a Dallas bank.

At the time (1968) Wetzel was the Vice President of Product Planning at Docutel, the
company that developed automated baggage-handling equipment. The other two inventors
listed on the patent were Tom Barnes, the chief mechanical engineer and George Chastain,
the electrical engineer. It took five million dollars to develop the ATM. The concept of the
modern ATM first began in 1968, a working prototype came about in 1969 and Docutel
was issued a patent in 1973.

The world's first ATM was installed in Enfield Town in the London Borough of Enfield,
London on June 27 1967. The first working ATM was installed in a New York based
Chemical Bank. The first ATMs were off-line machines, meaning money was not
automatically withdrawn from an account. The bank accounts were not (at that time)
connected by a computer network to the ATM.

Therefore, banks were at first very exclusive about who they gave ATM privileges to.
Giving them only to credit card holders (credit cards were used before ATM cards) with
good banking records. Wetzel, Barnes and Chastain developed the first real ATM cards,
cards with a magnetic strip and a personal ID number to get cash. ATM cards had to be
different from credit cards (then without magnetic strips) so account information could be
included.

2
1.1.2 History of SACCOS.
Any organization or institution is said to be successful if and only if it has met the
principal objectives of its formation, otherwise it is a failure. A successful organization
performs and is sustainable. So, in order to succeed there must be some contributing
factors likewise for failure there must be reasons for that failure. These factors may vary
from SACCOS as financial cooperative to other types of organizations. Therefore, besides
achieving its principal objectives, SACCOS should also be sustainable and efficient in its
operations.

To achieve their goals, SACCOS need to be commercially viable enterprises, able to

survive and prosper in the marketplace. To be sustainable, cooperatives have to be run on a
business-like footing. In contrast to other businesses, however, the rewards from their
trading activity are available to be shared between all the members, on a collective basis.
This uniqueness and voluntary model of SACCOS imply that the objectives of a typical
cooperative may not necessarily reflect the typical profit maximization objective under
neoclassical theory of the firm (Fried et al, 1993).

This means that profit maximization may not be the main objective of financial
cooperatives (Fried et al, 1993). Therefore, in this study, SACCOS will be treated as if
they are seeking to maximize benefit (loans and deposits mobilization) to their members.
Kushoka (2013) did an analysis on the sustainability and the ability of an employee-based
Savings and ‘Credit Cooperative Society (SACCOS) to meet its members’ needs.

The main objective of the study was to understand whether SACCOS are able to respond
to members’ needs and to examine sustainability of SACCOS. The findings of his report
indicated that employee-based SACCOS have insufficient funds to meet members’
requirements. The credit needs are left unmet and thus to a large extent discourage
members. On the other hand, different scholars stated that SACCOS in Tanzania face
problems of poor corporate governance, fraud and lack of skilled staff (Bibi 2006;
Hakikazi 2006; Maghimbi 2010).

These problems have led to poor performance and low efficiency of SACCOS which
affects their sustainability (Magali and Pastory 2013). Furthermore, some scholars have

3
shown that poor structures of SACCOS especially those operating in the rural areas of
Tanzania and in other developing countries is the reason for SACCOS’ inefficiency (Dong
and Featherstone 2004; Tesfamariam et al 2013; Nyankomo and Aziakpono 2013).

Furthermore, some other few existing empirical literature on the performance and
sustainability of microfinance offers varied results. For example, the findings from
Namibia concluded that almost all microfinance is not sustainable (Adongo and Stork,
2005). A study on Nepal microfinance showed that most of rural microfinance institutions
are not sustainable (Acharya and Acharya, 2010).

Thapa (2006) using Mix data set found that MFI in all the developing regions except
Africa were sustainable. Further analysis by the same author reported that MFIs from
South East Asia are fairly sustainable while the South Asian MFI is not. Nyamsogoro
(2010) found that out of 424 observations 80.2% of the microfinance in Tanzania were
financial sustainable. Based on these results there is a signal that the microfinance sector in
Tanzania is relatively healthy.

The current study will add to the limited empirical literature in this area by exploring traits
associated with the sustainability of saving and Credit Cooperatives which is almost at the
lower end of the microfinance pyramid in Tanzania. Based on the history, the literatures
indicate that improper management, frauds, inadequate capital, business misconduct and
Non-Performing Loans (NPL) are the problems facing cooperatives and SACCOS in
Tanzania (TFC 2006; Bibby 2006; Maghimbi 2010; Magali 2014).

4
1.2 OBJECTIVES OF THE RESEARCH

1.2.1 General objective

The main objective of this research is to develop a software tool that will manage all transaction
done by SACCOS cash services case of, Moshi, Kilimanjaro region, Tanzania as a case study.

1.2.2 Specific objectives

• To make it easier for data collection, storage and referencing reliable.

• To conduct analysis of the SACCOS member’s accounts management process.

• To maintain the transaction records for every SACCOS member.

• To design a web-based hostel management system for universities.

• To implement, test and validate the designed system.

1.3 LIMITATIONS OF STUDY

Time and financial constraints were the major factors that hindered the progress of this project.
The study involved a lot of financial obligations such as the cost of stationary, printing and
photocopying.

Moreover, combining fieldwork and lectures to produce a comprehensive project report within
the time limit was tiresome. Nevertheless, the quality of this study was not compromised.

5
 CHAPTER TWO

LITERATURE REVIEW

In this section we are going to analyze the existing system and provide solutions to errors or
build a new system all together.

2.1EXISTING SYSTEM

The existing system is manual based and need lot of efforts and consume much time. In the
existing somebody cannot see his or her current status of money in term of debit or credit and the
amount of loan can take for a time. Also, someone is required to visit SACCOS offices once is in
need of either requesting for loan or retuning/paying loan Also at the time a person need to
deposit money or do some transaction is required to visit the office physically which cost much
in term of time and money.

2.1.1 DISADVANTAGES:

• More human power

• More strength and strain of manual labor needed

• Repetition of same procedure.

• Low security.

• Data redundancy.

• Difficulty to handle.

• Difficulty to update data.

• Record keeping is difficult.

• Backup data can’t be easily generated.

6
2.2PROPOSED SYSTEM

This project is aimed at developing a system that will manage all the activities that relate with
transaction of money at SACCOS that is about withdraw money, requesting for loan, loan
payment, the amount of money that a person can borrow according to the terms and policies of
SACCOS checking the account balance etc.

Also included is a user module for employees or SACCOS officers. There will also be an
administrator module which will accessed by the administrator and has the ability to delete, add
and edit employee records Also he can easily maintain the members account, make new
members and update the records of the existing members. Also, the system will keep records for
every member who visit the system and kind of activity done will be kept in record for security
purpose.

This system will be developed based on Software Development Life Cycle (SDLC) with PHP
and My SQL server. PHP is good for the development and design of web-based programs whiles
My SQL is good for databases because of its security and its advanced features and properties.

7
 CHAPTER THREE

REQUIREMENT ANALYSIS

3:1 REQUIREMENT ANALYSIS

Functions and features delivered to the end users. The end users of the proposed system are:

➢ NEW ACCOUNT:

Performs the basic operations that are required to add a new member and records the

information of the user

➢ LOG- IN

This allows the user to get in his/her account.

➢ LOG OUT

This allows the user to close his/her account.

➢ CHANGE PASSWORD:

Through this menu option, the user may change the password by entering his old

password and specifying his new password twice.

➢ ONLINE TRANSACTION:

This option allows the member to spend money that is present in his/her account.

➢ RELOAD CARD:

The member can deposit money in his account using this screen.

➢ CHECK BALANCE:

The user can check his/her account balance by entering his/her password.

8
➢ ACCOUNT STATEMENT:

This option allows the member to view all the activities that have taken place in his/her

account.

➢ CUSTOMER LIST:

The list of members or customers can be viewed using this option.

➢ CUSTOMER RECORD:

This screen shows the details of the customer, identified through his/her card number.

➢ VISITORS MODULE

This allows the visitor details to view the visitors depending on various search criteria.

➢ REPORT GENERATION MODULE

This is provided to view summary detail regarding to the activities done by different users on a
specific time, by doing this will help in improving the security and integrity of the information of
different users in the system.

➢ SETTINGS MODULE

In this module, only the administrator can access. Administrator has a unique account with much
special access and permissions over normal users. Module allows add, edit, delete and employee
records etc.

9
3.2HARDWARE CONFIGURATION
The section of hardware configuration is an important task related to the software development.
Insufficient random-access memory may affect adversely on the speed and efficiency of the
entire system. The process should be powerful to handle the entire operations. The hard disk
should have sufficient capacity to store the file and application.

Processor: Pentium IV and above

Processor speed: 1.4 GHz Onwards

System memory: 128 MB minimum (256 MB recommended)

Cache size: 512 KB

RAM: 512 MB (Minimum)

Network card: Any card can provide a 100mbps speed

Network connection: UTP or Coaxial cable connection

Printer: Inkjet/Laser Color printer provides at least 1000 Dpi

Hard disk: 80 GB

Monitor: SVGA Color 15”

Mouse: 104 keys US Key Serial, USB or PS/2

10
3.3SOFTWARE CONFIGURATION

A major element in building a system is the section of compatible software since the software in
the market is experiencing in geometric progression. Selected software should be acceptable by
the firm and one user as well as it should be feasible for the system. This document gives a
detailed description of the software requirement specification. The study of requirement
specification is focused specially on the functioning of the system. It allows the developer or
analyst to understand the system, function to be carried out the performance level to be obtained
and corresponding interfaces to be established.

Technology Implemented: Apache Server

Language Used: PHP 5.3 or newer versions

Database: My SQL 5.5 or newer

User Interface: HTML, CSS and bootstrap

Web Browser: Mozilla, Chrome or Internet Explorer 8(or newer)

Software: XAMPP or WAMP Server

Operating System: Windows XP or higher versions.

11
 CHAPTER FOUR

SYSTEM DESIGN

This is most creative and challenging phase of the system life cycle is system designing. The
term designing describes a final system and the process by which it is developed. The first step is
to determine how the output is to be produced and in what format. Sample of the output and
input are also presented. Second input data and master files database have to be designed to meet
the requirement of the proposed output. We have done this project on Windows platform.
Windows platform is very convenient for such purpose because it provides such an environment
that the changes made in any type of the data can be viewed from anywhere at any time after
making changes. The first window is the welcome window.

Then the user gains access to the main screen of the system where he finds a menu bar consisting
of various operations he can perform within the system. The user can select any of the operation
as required and can work upon the system.

12
 CHAPTER FIVE

SUMMARY AND CONCLUSION

5:1 SUMMARY

This project is aimed at developing a system that will manage all the activities that relate with
transaction of money at SACCOS that is about withdraw money, requesting for loan, loan
payment, the amount of money that a person can borrow according to the terms and policies of
SACCOS checking the account balance etc. Also included is a user module for employees
or SACCOS officers. There will also be an administrator module which will accessed by the
administrator and has the ability to delete, add and edit employee records Also he can easily
maintain the members account, make new members and update the records of the existing
members. Also, the system will keep records for every member who visit the system and kind of
activity done will be kept in record for security purpose.

5:2CONCLUSION

To conclude the description about the project, the project will be developed using PHP with My
SQL is based on the requirement specification of the user and the analysis of the existing system,
with flexibility for future enhancement.

Online SACCOS ATM system is the system that will be developed by the aim of managing all
the activities conducted by SACCOS that relate to the controlling the accounts of their members
including money deposition, withdraw cash, checking balance, checking the status of payment
and borrowing money and all other activities relate to transaction of money.
Though the system will be certain similar to Mobile SIM banking but not similar as this system
will base most on managing also it will be web based and not mobile application. This particular
project deals with the problems on managing a SACCOS transaction and avoids the problems
which occur when carried manually.
Identification of the drawbacks of the existing system leads to the designing of computerized
system that will be compatible to the existing system with the system which is more user friendly
and more GUI oriented.

13
 REFERENCES

1) Books: - Books is one of the most important and essential sources of information, which is
helpful in

this project. In group discussion, it was suggested to go through following books.

➢ Roger.s. pressman
➢ Elias m. avad
➢ Bipin c. Desai

2) Interview; The idea of interview is gained by group discussion. It is the one of the important
sources. of information. Through it we got a lot of information about present system and how it
works.

3) Websites; We also visited following websites, which was helpful in project.

➢ www.smartdraw.com, www.mks.com, www.sel.iit.rwc.ca

Simpeh, F. (2013). A study of current maintenance strategies of university building facilities in

the Western Cape, South Africa. Master’s Thesis, Cape Peninsula University of
Technology.

Kamarazaly, M.A., Mbachu, J., & Phipps, R. (2013). Challenges faced by facilities managers in
the Australasian universities. Journal of Facilities Management, 11(2), 136–151.

https://www.graphic.com.gh/features/opinion/poor-maintenance-culture-cause-of-
rapidinfrastructure-deterioration.html.

http://nptel.iitm.ac.in/courses/Webcoursecontents/IIScBANG/System%20Analysis%20and%20D
esign/pdf/Lecture_Notes/LNm5.pdf [accessed June 20, 2012]

Html and Php from W3 schools. http//w3school.com

14