A Mobile financial management system for investment groups

Abstract

Investment groups have become a sure path to financial freedom not only because of their simplistic nature, but also due to the substantial gains that members of such groups accrue. They have been recognized as the driving force of the non-formal economy helping members to invest in various industries like real estate and transport. However, many of them fizzle out without making any substantial gains due to poor financial management practices and lack of financial management tools. Majority of investment groups are unable to accurately document, manage and track their financial transactions leading to lack of transparency and accountability. The study establishes that majority of investment groups are not able to effectively manage their finances due to various factors like limited financial resources to take up credible tools for financial management and limited access to information on financial management. To fill this gap, the study came up with a mobile financial management system. The system comprised of an Android mobile phone, an Android application and a back-end web application for authentication, transactions monitoring and generation of reports. The application was implemented using a combination of mobile money technologies to allow group members to contribute directly to a group’s bank account. The application allowed group members to view financial statements for the group e.g. group balance sheets and trial balances hence enhancing transparency. The functionality and usability of the system was tested to establish whether the system and user needs were adequately realized. Results of the tests established the system is efficient, fast and user friendly, hence, a conclusion was made that the system can therefore be used in Investment Groups to accurately document, manage and track financial transactions in real time. Additionally, supporting MFIs can now accurately monitor these groups due to improved financial reporting brought about by the solution.