Technical Background

LendRow is an innovative peer-to-peer lending platform designed to redefine borrower-lender interactions. It utilizes technology to simplify loan transactions and deliver a transparent, efficient, and user-friendly experience. Its key features include a virtual wallet system, cash-in and cash-out options, and comprehensive loan management tools. This chapter delves into LendRow's technical foundation, focusing on its architecture, activity flows, and data interactions. The system addresses challenges in traditional lending by prioritizing scalability, transparency, and convenience. A clear organizational structure and well-defined roles support the development process, ensuring thorough research, detailed documentation, and smooth implementation. By combining modern technologies with thoughtful system design, LendRow offers an end-to-end solution for peer-to-peer lending, fostering trust and efficiency in financial transactions.

Figure 3.1 Organizational structure

Figure 3.1 illustrates the organizational structure of a lending system. At the top, Entice Small Credit oversees the entire operation. The Lending Owner manages the system and delegates tasks to Lending Owner A and Lending Co-Owner A. These roles supervise the Lenders, specifically Lender A and Lender B, who handle the funds. At the base of the structure, Collectors, including Collector A and Collector B, are responsible for recovering payments and managing collections from borrowers.

Figure 3.2 Floor plan

The floor plan shown in Figure 3.2 includes two rooms with distinct purposes. The workspace features separate desks for the owner and co-owner, each equipped with a computer and chair to ensure efficient operations. Adjacent to this area is a waiting space with visitor seating, designed to enhance functionality. The second room serves as a resting area, furnished with a single bed for relaxation and a cabinet for storage. The layout promotes both productivity and comfort, providing clear movement pathways and well-organized spaces for work, and rest, and accommodating visitors.

Figure 3.3 Activity diagram of the current system

Figure 3.3 illustrates the activity diagram of the current system. The borrower begins by checking their financial savings. If funds are insufficient, they apply for a loan, submit the required documents, review the lending terms, and sign the agreement if acceptable. Once the agreement is signed, the borrower acknowledges the funds, pays interest, verifies payment details, and repays the principal. On the other hand, the lender gathers borrower information, reviews the submitted documents, negotiates terms, if necessary, prepares and authenticates the agreement, and disburses the funds. The lender then collects interest, updates payment records, posts the transaction, receives the principal, and closes the agreement once payment is complete.

Figure 3.4 Context level data flow diagram of the current system

Figure 3.4 illustrates the Peer-to-Peer Lending System, designed to connect borrowers and lenders by streamlining the exchange of information and finances. Borrowers submit their personal and financial details, review lending terms, access funds, and make regular payments. Lenders provide funds, set lending conditions, and receive repayments along with detailed records. The system oversees key functions, including loan disbursement, agreement management, payment tracking, and loan closure, ensuring a smooth and dependable experience for both borrowers and lenders.

Figure 3.5 Level 0 data flow diagram of the current system

As illustrated in the Level 0 DFD of the current system in Figure 3.5, the process starts by checking the borrower’s financial savings. The borrower then submits a loan application with personal information and complies with the lending requirements. These requirements are validated by the lender. Once approved, both parties review and finalize the lending terms. This leads to the authentication and printing of the loan agreement. The lender disburses the funds, and the borrower begins making monthly interest payments, which are recorded in the system. The loan process concludes when the borrower fully repays the loan, and a closure agreement is generated.

Figure 3.6 LendRow’s system architecture

Figure 3.6 illustrates the system architecture, where users access LendRow’s interface online, seamlessly hosted on Huawei Cloud. A PHP-based backend server handles core operations, including managing loan-related data stored in the Huawei Cloud Database. Financial transactions, such as cash-in and cash-out, are facilitated through integrations with GCash and Maya APIs. Developers access a dedicated interface for system deployment and maintenance, ensuring the platform operates smoothly and delivers an optimal user experience.

Figure 3.7 Activity diagram of LendRow

The proposed activity diagram, as illustrated in Figure 3.7, highlights the systematic flow of operations within the LendRow Peer-to-Peer Lending System. Starting with the admin, the process begins with the setup and verification of virtual wallets, ensuring accuracy before proceeding. Lenders then load digital cash deposits, verified by the admin, before creating lending information. Concurrently, borrowers submit loan applications, which the system assesses for validity. Approved applications lead to the disbursement of funds, while borrowers' monthly interest payments are monitored and retried in case of insufficiencies, ensuring a complete and efficient lending cycle.

Figure 3.8 Context level data flow diagram of LendRow

Figure 3.8 illustrates the high-level data interactions within the proposed system, emphasizing the collaborative roles of the admin, lenders, and borrowers. The admin oversees cash-in transactions and validates administrative data, while lenders contribute lending data and verify disbursements. Borrowers submit loan applications and payment data, which the system processes to establish agreements, facilitate fund disbursement, and track payments. The diagram captures the interconnectedness of these roles, showcasing a streamlined workflow that enhances transparency and reliability.

Figure 3.9 Level 0 data flow diagram of LendRow

As depicted in Figure 3.9, the system's foundational processes are designed for clarity and efficiency. Beginning with the admin setting up a virtual wallet, subsequent actions include lenders loading deposits and creating lending data, and borrowers submitting applications. The system validates these inputs, generating agreements and tracking all transactions. This closed-loop flow ensures that every step, from fund disbursement to payment reconciliation, is meticulously recorded and verified, fostering trust among all parties involved.

Figure 3.10 Entity-relationship diagram of LendRow

The entity-relationship diagram in Figure 3.10 defines the intricate connections between users, the admin, and the financial operations of LendRow. The admin manages an internal virtual wallet with associated histories, while users independently maintain wallets for their activities. Cash loading, lending applications, and agreement creation form the backbone of these relationships, with detailed financial records ensuring transparency. This structured approach underpins the system's ability to manage interactions seamlessly, bolstering its role as a trusted financial intermediary.

Figure 3.11 Project organization of LendRow

Figure 3.11 outlines the organizational structure of the LendRow project, emphasizing a versatile approach to role fulfillment. The Project Manager oversees planning, coordination, and execution, ensuring the project remains on track. The Researcher conducts in-depth analyses and provides theoretical insights to inform the project’s direction. The Documenter carefully records processes and findings, while the Developer manages the technical implementation. This cohesive allocation of roles demonstrates a balanced effort to integrate expertise across domains, ensuring the project's success through effective organization and execution.