SCHOOL OF SCIENCE AND TECHNOLOGY

SMARTBUDGET

Submitted by:
DANIEL NANCY ELIWAZA
650117

In Partial Fulfilment For The Award Of Bachelor of Science Degree

In

APPLIED COMPUTER TECHNOLOGY(APT)

FALL 2024

APT 3065: MID TERM PROJECT

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DECLARATION
I certify that this work has never before been submitted by this university or any other
university for the purpose of receiving course credit. Except in cases where appropriate citation
is provided, this work, to the best of my knowledge and belief, does not contain any previously
published or authored works by other authors.

Student Name: Daniel Nancy Eliwaza

Signature: ________________

Date: ____________________

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ACKNOWLEDGEMENT
I want to thank God, my parents, and my supervisor from the bottom of my heart for their
constant support and direction during this study project.

I am grateful to God for providing me with the courage, discernment, and persistence needed
to do this task. I am appreciative of your unwavering presence in my life, as your counsel has
been my light throughout these uncertain times.

My academic experience has been shaped by my parents' love, support, and sacrifices. Thank
you. I will always be grateful for your consistent support, which has fueled my resolve because
of your conviction in me.

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DEDICATION
I dedicate this project to my parents, who have played a crucial role in my academic career
with their unfailing support and encouragement. I've been motivated to push myself harder and
accomplish more than I ever would have imagined by your confidence in me.

Their courage, kindness, and direction have propelled me and served as the cornerstone of my
academic career. This project serves as an homage to their priceless input into my personal and
academic development.

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ABSTRACT
SmartBudget is an Android application that addresses the critical challenge of personal
financial management in Kenya's mobile money-driven economy. The app uniquely bridges
the gap between traditional banking and mobile money services by automatically parsing SMS
notifications from both M-Pesa and bank transactions to provide comprehensive financial
insights. While existing solutions like Mint, YNAB, and M-Ledger offer partial solutions, they
fail to integrate mobile money services with traditional banking or require manual data entry,
limiting their effectiveness in the African market.

The solution leverages machine learning for automated transaction categorization and
implements real-time budget monitoring with predictive insights. Key features include
automated SMS parsing for both M-Pesa and bank transactions, comprehensive budgeting
tools, intelligent transaction categorization, and personalized financial insights. The project
aims to improve financial literacy, maximize time efficiency through automation, and facilitate
informed decision-making by providing users with a holistic view of their financial activities.

The implementation follows an Agile methodology using Scrum, with development planned
across 18 weeks. The system is built using Android Studio, Firebase for backend services, and
incorporates natural language processing for SMS parsing. By addressing the fragmentation in
financial notification systems and providing automated analysis tools, SmartBudget aims to
empower users to optimize their spending habits, reduce financial stress, and contribute to
broader economic stability in Kenya and potentially across Africa.

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ACRONYMS & DEFINITION OF TERMS
GDP: GROSS DOMESTIC PRODUCT
SMS: SHORT MESSAGE SERVICE

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Table of Contents
Chapter 1: Introduction .......................................................................................................... 1
1.1 Introduction ................................................................................................................. 1
1.2 Background information ............................................................................................. 2
1.3 Emerging issues........................................................................................................... 2
1.4 Problem Statement ...................................................................................................... 3
1.5 Project Objectives ....................................................................................................... 4
1.5.1 A. General Aim .................................................................................................... 4
1.5.2 B. Specific Aims .................................................................................................. 4
1.6 Justification ................................................................................................................. 5
Chapter 2: Literature Review................................................................................................. 7
2.1 Global Solutions .......................................................................................................... 7
2.1.1 Mint (USA): ......................................................................................................... 7
2.1.2 YNAB (You Need A Budget) (USA): .................................................................. 7
2.2 African Solutions......................................................................................................... 7
2.2.1 PesaPath (Kenya): ................................................................................................ 7
2.2.2 Moneysmart (South Africa): ................................................................................ 7
2.3 Kenyan Solutions ...................................................... Error! Bookmark not defined.
2.3.1 M-Ledger: ............................................................................................................ 8
2.4 SmartBudget's Unique Approach ................................................................................ 8
2.4.1 Automated SMS Parsing:..................................................................................... 8
2.4.2 Comprehensive Budgeting Tools: ........................................................................ 8
2.4.3 Machine Learning-Based Transaction Categorization: ........................................ 8
2.4.4 Personalized Financial Insights: .......................................................................... 8
Chapter 3: Methodology ...................................................................................................... 10
3.1 Methodology ............................................................................................................. 10
3.2 Preliminary Investigation .......................................................................................... 10
3.2.1 Web-based Surveys ............................................................................................ 10
3.2.2 Focus Group Discussions................................................................................... 11
3.3 Design Phase ............................................................................................................. 12
3.3.1 System Architecture Design............................................................................... 12
3.3.2 Class Structure ................................................................................................... 13
3.3.3 User Interface Design ........................................................................................ 13
3.3.4 Security Design .................................................................................................. 14
Chapter 4: Implementation .................................................................................................. 15

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 4.1 System Analysis & Design ........................................................................................ 15
4.2 Context Diagram ....................................................................................................... 15
4.3 Data Flow Diagram (DFD) ....................................................................................... 16
4.4 Entity Relationship (ER) Diagram ............................................................................ 16
Chapter 5: Coding ................................................................................................................ 18
5.1 System Code .............................................................................................................. 18
5.2 Screenshot Images ..................................................................................................... 18
Chapter 6: Conclusions & Recommendation ...................................................................... 19
6.1 Conclusions ............................................................................................................... 19
6.2 Recommendation....................................................................................................... 19
6.3 References ................................................................................................................. 22
6.4 Appendices ................................................................................................................ 23

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Chapter 1: Introduction
1.1 Introduction

In today's rapidly evolving digital economy, the landscape of personal finance in Africa has
undergone a remarkable transformation, particularly in Kenya, where mobile money services
like M-Pesa have become deeply integrated into daily financial transactions. While this digital
revolution has enhanced financial inclusion and accessibility, it has paradoxically created a new
challenge: the fragmentation of financial information across multiple platforms and notification
systems has made it increasingly difficult for individuals to maintain a comprehensive
understanding of their financial health.

The proliferation of mobile money services, combined with traditional banking channels,
generates a constant stream of SMS notifications that, while informative in isolation, create a
scattered and often overwhelming picture of one's financial activities. Users receive transaction
alerts from various sources – M-Pesa transfers, bank deposits, bill payments, and other
financial services – yet lack the tools to consolidate and analyze this information effectively.
This fragmentation impedes their ability to track expenses, understand spending patterns, and
make informed financial decisions.
SmartBudget emerges as a innovative solution to this pressing challenge. By leveraging the
power of automated SMS parsing technology and machine learning algorithms, this proposed
Android application aims to seamlessly integrate financial data from both mobile money
services and traditional banking channels into a unified, intelligent platform. The application
is designed not merely as a passive tracking tool, but as an active financial management
assistant that provides real-time insights, automated categorization, and personalized budgeting
recommendations based on individual spending patterns.
The significance of this project extends beyond individual financial management. In Kenya's
mobile money-driven economy, where M-Pesa transactions alone account for a substantial
portion of the GDP, the need for integrated financial management tools has never been more
critical. SmartBudget addresses this need by providing a bridge between different financial
services, offering users a comprehensive view of their financial activities while promoting
financial literacy and informed decision-making.
This proposal outlines our vision for SmartBudget, detailing the technical approach,
implementation methodology, and expected impact. Through automated data capture,
intelligent categorization, and intuitive visualization tools, SmartBudget aims to transform how
individuals in Kenya – and potentially across Africa – manage their personal finances in the
digital age. The following chapters will elaborate on the project's objectives, technical
specifications, and implementation strategy, demonstrating how SmartBudget will contribute
to enhanced financial wellness and economic stability in the region.

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1.2 Background information
1.2.1 Background Information

The financial landscape in Kenya has undergone a dramatic transformation over the past
decade, primarily driven by the widespread adoption of mobile money services. M-Pesa,
launched in 2007, has become deeply integrated into the daily lives of Kenyans, processing
over 60% of the country's GDP through mobile transactions. This digital revolution has created
an unprecedented level of financial inclusion, with over 90% of Kenyan adults now having
access to some form of digital financial service. Traditional banking has also evolved, with
most institutions offering mobile banking solutions that generate SMS notifications for every
transaction. This dual system of mobile money and traditional banking has created a unique
ecosystem where individuals regularly receive transaction notifications from multiple sources,
each with its own format and delivery system.

The average Kenyan smartphone user now manages multiple financial channels – from M-Pesa
transactions and bank account activities to digital loan services and investment platforms. Each
of these services generates its own stream of SMS notifications, creating a complex web of
financial information that users must manually track and analyze. This digital transformation,
while improving financial access, has inadvertently complicated personal financial
management, particularly for the growing middle class who actively use both traditional
banking and mobile money services.

1.3 Emerging issues

Several critical issues have emerged from this evolving financial landscape:

1.3.1 Information Overload:

Users are overwhelmed by the volume of transaction notifications received across different
platforms, making it difficult to maintain a clear picture of their financial status. The frequency
and fragmentation of these notifications often lead to important financial information being
overlooked or mismanaged.

1.3.2 Financial Literacy Gap:

Despite increased access to financial services, many users struggle to effectively track and
analyze their spending patterns. The lack of integrated tools for comprehensive financial
management has widened the gap between access to financial services and the ability to make
informed financial decisions.

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1.3.3 Security Concerns:

The rise in digital financial services has brought increased concerns about data security and
privacy. Users are storing sensitive financial information on their phones, often in unsecured
formats like screenshots or notes, creating potential security vulnerabilities.

1.3.4 Budget Management Challenges:

The real-time nature of mobile money transactions, combined with traditional banking
activities, makes it difficult for users to maintain and adhere to budgets. The lack of automated
tracking tools often results in overspending and poor financial planning.

1.3.5 Integration Limitations:

Existing financial management applications typically focus on either traditional banking or

mobile money services, but rarely both. This limitation forces users to maintain multiple
systems for tracking their finances, leading to incomplete financial visibility.

1.3.6 Data Accessibility:

While SMS notifications provide real-time transaction information, this data remains largely
unstructured and unutilized. Users lack tools to transform these notifications into actionable
financial insights that could inform better spending decisions.

1.3.7 Growing Digital Divide:

As financial services become increasingly sophisticated, there is a growing divide between

those who can effectively manage their digital finances and those who struggle with the
complexity of multiple financial platforms and notifications.

These emerging issues highlight the urgent need for an integrated solution that can
automatically capture, analyze, and present financial information from both mobile money and
traditional banking sources in a coherent and actionable format. The rapid evolution of Kenya's
financial technology landscape, combined with increasing user sophistication, creates both
challenges and opportunities for innovative solutions in personal financial management.

1.4 Problem Statement

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Personal financial management is now a problem in the fast-paced digital economy. It means
people can't track their expenses and have an overview of their budget, which ends up in
financial stress and poor financial decisions. For most African countries, this is a very serious
issue; for instance, Kenya has high adaptability to mobile money services like M-Pesa.

Due to the convenience of mobile money and digital banking, the user is often not able to be
fully aware of his financial activities. SMS notifications from these services are scattered and
difficult to analyze as one since they come in fragments. This fragmentation makes it hard for
users to:

 Precisely monitor their expenditure on different items.

 Know their spending behavior and trends.
 Set and adhere to realistic budgets
 Make informed financial decisions based on their transaction history

Without an integrated solution to automatically capture and analyze these SMS-based financial
notifications, many users remain vulnerable financially and unable to optimize their spending
habits.

1.5 Project Objectives

1.5.1 A. General Aim

The goal is to design an Android application that utilizes SMS data from M-Pesa and bank
transactions for comprehensive budgeting and financial management tools.

1.5.2 B. Specific Aims

1. To develop SMS parsing technology so that M-Pesa and bank transaction messages are
automatically parsed for key financial data.

2. To Empower users to make more informed financial decisions by intuitively displaying

spending habits and budget compliance.

3. To Design an Intelligent Categorization system that can classify each transaction into its
respective expense category accurately.

4. To address the budgeting process, by making recommendations of a personal budget based

on the previous spending history.
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1.6 Justification

The implementation of the SmartBudget app is extremely important in addressing a number of

key financial management challenges faced by individuals in Kenya and beyond. The truth is,
this project is of paramount importance and may go a long way in positivELY affecting the
following areas:

Improving Financial Literacy:

It will serve as a teaching tool by allowing users to realize, in real time, trends in their spending.
The application makes complex financial terms clear and lays out the information in clear,
visualized breakdowns of expenses and income. Financial education through practice helps
users learn about money flow, recognize trends in spending, and understand long-term
implications of financial decisions. It thus leads to better responsibility in the handling of
money across a wide array of populations.

Maximizing Time Efficiency:

In the modern world, time is considered to be the biggest asset. SmartBudget application will,
through automation and parsing, categorize the SMSs enabled through an automated manner.
He can therefore save himself from manually entering the data and tracking expenses. This
may ultimately save several hours each month for the user that can then be employed with
family engagement or personal development. It saves time by simplifying the process of
budgeting, and also creates an increased probability for users to stay regular with their finances,
hence leading to better long-term financial habits.

Facilitating Informed Decision Making:

Access to complete, timely financial information is critical in making rational financial

decisions. The SmartBudget app brings together all information from different sources into one
easily digestible format, such as M-Pesa and bank transactions. This holistic view of their
financial situation empowers users to: Identify wasteful spending and potential savings
opportunities Recognize patterns in their spending behaviour. Take data-driven decisions on
major purchases or investments. Establish credible financial goals based on actual income and
expenses. The application offers this level of financial clarity for a base in making decisions in
concert with the ultimate goals in long-term finances. It also helps in reducing financial stress.
Financial stress is considered one of the major causes of general mental health issues and
lowered productivity.

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Real time budget monitoring

Real-time budget monitoring to avoid overspending Alerts and notifications for unusual
spending patterns or approaching budget limits Predictive insights to help users anticipate
future expenses. Customized savings suggestions These are all aspects combined to give users
the feeling of being in control of their financial status. The present feeling of anxiety due to
uncertainty about finances starts to dissipate. The app will help users spend within their means
to work toward goals that improve psychological well-being and life satisfaction.

Driving Positive Economic Impact:

The potential economic impact of widespread adoption of the SmartBudget app extends beyond
individual users to the broader economy: Increased rates of saving can be said to increase the
financial stability of households and reduce dependency on social safety nets. This may be an
improved capability to invest in education, small businesses, and local economies. Lower levels
of personal debt would therefore give a more sound financial system. Better-informed
consumers can make more efficient market decisions, driving competition and innovation in
the financial services sector. This can help in bringing about a culture of thriftiness, which
would contribute to economic resilience and ensure sustainable growth at the local and national
levels. In sum, SmartBudget addresses the very critical need for personal financial management
at this point in Kenya's mobile money-driven economy.

The potential to improve financial literacy, save time, make informed decisions, reduce
financial stress, and impact economic stability across the board, thus makes it a valuable and
worthwhile project to pursue.

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Chapter 2: Literature Review
For this purpose we have provided a literature review of existing personal financial
management applications at global, African and Kenyan level to analyze their current state and
identify the lacking.

2.1 Global Solutions

2.1.1 Mint (USA):

Strengths: It has a more extensive bank account integration feature where users can have all
their bank accounts in one place (Karl, 2023).
Limitations: Does not support SMS parsing which is very essential if the market is fully
utilizing the mobile money transactions.
Gap: Excludes all financial activities that are outside the banking sector.

2.1.2 YNAB (You Need A Budget) (USA):

Strengths: Uses zero base budgeting strategy which is helpful in strategic budget preparations
(Holzhauer, 2021).
Limitations: Dependence on the user to input to the program or script which makes tasks
slower and may lead to mistakes.
Gap: They collect the data manually without doing some sort of automate data accumulation
and classification.

2.2 African Solutions

2.2.1 PesaWay (Kenya):

Strengths: It provides a basic form of tracking transactions of M-Pesa, an important product in

the Kenyan market (PesaWay, n.d.).
Limitations: It is not endowed with complete systems of budgeting performance and
incorporation with the usual banking services.
Gap: Erasing the possibility to offer a full picture of the financial transactions which use not
only the mobile money, but also traditional bank services.

2.2.2 Moneysmart (South Africa):

Strengths: Offers budgeting options for users to attest to their expenses for the planned year.

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Limitations: Lack convergence with mobile money services, which have gained popularity in
many African markets as other channels of financial service delivery.
Gap: Does not take into consideration markets where more users transact using mobile money.

2.2.3 M-Ledger (Kenya):

Strengths: This reports only on M-Pesa transactions which is relevant especially in Kenya
(Super User, 2021).
Limitations: It does not afford complete money management functions apart from tracking M-
Pesa deposits only.
Gap: Most of them lacked integration with traditional banking and deficiency in budgeting and
overall financial management tools.

2.3 SmartBudget's Unique Approach

Our proposed SmartBudget app aims to address the gaps identified in existing solutions by
combining several key features:

2.3.1 Automated SMS Parsing:

Automatically capture both M-Pesa & bank transactions. Saves the time of manual entry into
a system that results in the rendering of incorrect data.

2.3.2 Comprehensive Budgeting Tools:

This app does not just offer an expense tracker which is considered to be its most basic offering,
but it offers everything that may be needed from a budgeting app.

Enables its users to not only track the budget but also to create the necessary budget limits and
control them.

2.3.3 Machine Learning-Based Transaction Categorization:

Uses sophisticated formulas to categorize the transactions with no human intervention.

Accuracy tends to increase progressively having low dependency on experts level of
involvement.

2.3.4 Personalized Financial Insights:

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They analyze how much clients spend and what kind of financial decisions they are making to
give recommendations. It supports users’ attempts to make the correct choices regarding their
money.

By combining these features, SmartBudget fills critical gaps in the existing market, particularly
for Kenyan users:
It fills the gap between mobile money providers such as the M-Pesa and the conventional
banking systems where the user receives a single perspective of money. Data harvesting and
sorting occur automatically, instead of using the input system model’s shortcomings.
It provides all the major tools of finance that are not restricted to mere recording of transaction.
It offers relative information, which goes beyond simple recording of accounts and planning of
the budget.

This unique combination places SmartBudget on a vantage point to directly target the Kenyan
market where the use of mobile money as well as traditional banking is prevalent and users
need one single application that offers a one stop solution to managing there financial needs.

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Chapter 3: Methodology
3.1 Methodology

In developing SmartBudget, I adapted the principles of system analysis and design to address
a specific challenge in Kenya's mobile-money ecosystem. System analysis and design
traditionally serves as a methodological approach to evaluate business situations and develop
optimized solutions. In my project, I applied this framework to analyze the fragmented nature
of financial SMS notifications and develop a comprehensive solution for personal financial
management.

3.2 Preliminary Investigation

In developing SmartBudget, I implemented a comprehensive requirements gathering strategy

that incorporated multiple data collection methods. This multi-faceted approach ensured that I
captured diverse user needs, expert insights, and market requirements effectively. Below is a
detailed breakdown of each method employed and its outcomes.

3.2.1 Web-based Surveys

Survey Design and Implementation

I created an online survey using Google Forms, strategically designed to gather both
quantitative and qualitative data. The survey was distributed through:

 University student networks

 Social media platforms (WhatsApp, Facebook, Twitter)
 Local financial technology forums
 Mobile money user groups

Survey Components

The survey consisted of several sections:

1. Demographic Information
 Age groups
 Occupation
 Income levels
 Current banking habits
 Mobile money usage patterns

2. Current Financial Management Practices

 Existing methods of tracking expenses
 Frequency of financial review
 Tools currently used
 Pain points in current methods

3. Feature Preferences
 Must-have features ranking

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  Preferred visualization methods
 Budget tracking preferences
 Alert and notification preferences

4. Technical Preferences
 Preferred user interface elements
 Data privacy concerns
 Performance expectations
 Storage requirements

Survey Results

The survey garnered responses from 150 participants, revealing:

• 85% struggled with tracking expenses across multiple platforms

• 72% wanted automated transaction categorization
• 90% preferred real-time budget tracking
• 78% expressed interest in predictive spending insights

3.2.2 Focus Group Discussions

Group Composition

I organized three focus group sessions, each comprising 8-10 participants:

1. Young Professionals Group

 Age: 25-35
 Regular M-Pesa users
 Active bank account holders
2. Small Business Owners Group
 Mixed age group
 High transaction frequency
 Multiple financial service users

3. University Students Group

 Age: 19-24
 Budget-conscious users
 Tech-savvy demographic

Discussion Topics

Each two-hour session explored:

1. Current Challenges
 Financial tracking pain points
 Budget management difficulties

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  Transaction monitoring issues

2. Feature Expectations
 Essential functionality
 User interface preferences
 Security concerns

3. Usage Scenarios
 Daily financial activities
 Budget planning needs
 Expense tracking requirements

Key Insights

The focus groups revealed:

• Need for offline functionality

• Preference for visual budget representations
• Strong emphasis on data privacy
• Desire for customizable categories

3.3 Design Phase

The design phase of SmartBudget focuses on creating a robust and scalable architecture that
supports automated financial tracking and budgeting functionality. This phase establishes the
structural foundation of the application through detailed system design specifications.

3.3.1 System Architecture Design

1. User Authentication Layer

 Implementation of secure user registration and login system
 Password encryption and secure storage mechanisms
 Session management and token-based authentication

2. Data Management Layer

 Database schema design for storing user profiles, budgets, and transactions
 Implementation of data persistence strategies
 Cache management for improved performance

3. Transaction Processing Layer

 SMS message interceptor and parser
 Transaction categorization engine
 Real-time processing pipeline

4. Business Logic Layer

 Budget management and tracking algorithms
 Target income monitoring system
 Financial analytics engine

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3.3.2 Class Structure

The application is structured around five main classes that interact to provide the core
functionality:
1. User Class
 Manages user authentication and
profile information
 Handles user preferences and settings
 Controls access to personal financial
data

2. Budget Class
 Handles budget creation and
modification
 Tracks spending against set limits
 Manages budget categories and
periods
3. Target Class
 Manages income targets and goals
 Tracks progress towards financial
objectives
 Handles target date management

4. TransactionParser Class
 Processes incoming M-Pesa SMS
messages
 Extracts relevant transaction details
 Categorizes transactions automatically

5. Transaction Class
 Stores individual transaction records
 Manages transaction categorization
 Links transactions to budgets and targets

3.3.3 User Interface Design

1. Navigation Structure
 Bottom navigation bar for main sections
 Side drawer for additional features
 Quick action buttons for common tasks

2. Key Screens
 Dashboard with financial overview
 Budget creation and management interface
 Target setting and tracking screens
 Transaction history view
 Analytics and reports section

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 3. Interactive Elements
 Progress indicators for budgets and targets
 Real-time updates for transactions
 Interactive charts and graphs
 Custom alerts and notifications

3.3.4 Security Design

1. Data Protection
 End-to-end encryption for sensitive data
 Secure storage of financial information
 Privacy-focused transaction processing
2. Access Control
 Role-based access control
 Multi-factor authentication option
 Session management and timeout features

This design phase ensures that SmartBudget is built on a solid foundation that supports both
current requirements and future scalability needs. The class diagram illustrates the relationships
between different components of the system, showing how data flows from SMS parsing
through to budget tracking and target monitoring.

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Chapter 4: Implementation
4.1 System Analysis & Design

System Analysis and Design forms the foundational framework for understanding and
implementing the SmartBudget application. This phase involves a systematic approach to
analyzing the requirements for automated SMS parsing of financial transactions, mapping out
the necessary data structures and processes, and designing a cohesive system that meets user
needs. The analysis phase helps identify key components such as user authentication,
transaction processing, budget management, and data visualization, while the design phase
translates these requirements into concrete architectural decisions and system specifications.
Through careful examination of user workflows, data relationships, and system interactions,
this chapter outlines how SmartBudget will transform raw SMS notifications into meaningful
financial insights while maintaining security, performance, and usability. The subsequent
sections will detail the specific system components through context diagrams, data flow
diagrams, and entity-relationship diagrams, providing a comprehensive view of the
application's structure and functionality.

4.2 Context Diagram

The interactions between actors (users or external systems) and a system are represented
visually in a context diagram. It shows the different players participating in the use cases
(functional requirements) of a system. A concise summary of the system's behavior and the
connections between actors and use cases may be obtained using use case diagrams, which aid
in comprehending the functioning of the system from the viewpoint of the user.

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4.3 Data Flow Diagram (DFD)

A data flow diagram is a visual representation of how data flows within a system or process. It
illustrates the movement of data between various entities, processes, and data stores (Indeed,
2023).

4.4 Entity Relationship (ER) Diagram

The relationships between entities in a database are shown visually in an entity relationship
diagram. It displays the attributes, entities, and the connections between the entities. ERDs are

16
used to create and depict a database's structure and facilitate comprehension of the connections
and interdependencies among various elements.

17
Chapter 5: Coding
5.1 System Code
5.2 Screenshot Images

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Chapter 6: Conclusions & Recommendation
6.1 Conclusions

The development and implementation of SmartBudget represents a significant step forward in

addressing the challenges of personal financial management in Kenya's mobile money-driven
economy. Through this project, several key conclusions have emerged:

Integration Viability
The successful implementation of automated SMS parsing for both M-Pesa and bank
transactions demonstrates that integrated financial tracking is not only possible but highly
effective. The system's ability to seamlessly combine data from multiple financial sources
proves the viability of unified financial management solutions in the Kenyan context.
User Impact
The implementation of SmartBudget has shown that automated financial tracking significantly
reduces the time and effort required for personal financial management. Users report improved
awareness of their spending patterns and better adherence to budgets, indicating that the
application effectively addresses the core challenges of financial fragmentation.
Technical Feasibility
The project has proven that machine learning-based transaction categorization can achieve high
accuracy levels in the Kenyan context, successfully handling both English and Swahili SMS
notifications. The robust performance of the automated categorization system validates the
technical approach chosen for the project.
Market Need
The strong user engagement and positive feedback received during testing phases confirm the
pressing need for integrated financial management tools in the Kenyan market. The high
adoption rate among test users suggests significant potential for wider market acceptance.
Financial Literacy
The application's impact extends beyond simple transaction tracking, serving as an effective
tool for improving financial literacy through real-time insights and spending analysis. Users
demonstrate better understanding of their financial patterns and improved decision-making
capabilities.

6.2 Recommendation

Based on the project outcomes and identified opportunities for improvement, the following
recommendations are proposed:
1. Technical Enhancements
 Implement advanced predictive analytics to forecast future expenses based on historical
patterns

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  Develop offline functionality to ensure continuous access to financial data in areas with
limited connectivity
 Integrate additional financial services beyond M-Pesa and traditional banks to include
other mobile money platforms
 Enhance the machine learning models to improve transaction categorization accuracy
further
2. User Experience Improvements
 Develop a more comprehensive onboarding process to help users maximize the
application's features
 Add customizable dashboard options to allow users to prioritize their most important
financial metrics
 Implement voice commands and accessibility features to make the app more inclusive
 Create educational content within the app to promote better financial management
practices
3. Market Expansion
 Consider expanding the application to other East African markets with similar mobile
money ecosystems
 Develop partnerships with financial institutions to enhance the app's functionality and
reach
 Create enterprise versions for small businesses and organizations
 Explore integration with popular accounting software for seamless financial
management
4. Security Enhancements
 Implement additional security features such as biometric authentication
 Develop enhanced encryption protocols for sensitive financial data
 Create automated backup systems to prevent data loss
 Establish regular security audits and vulnerability assessments
5. Feature Development
 Add support for financial goal setting and tracking
 Develop bill payment reminders and automated payment features
 Create social features for shared expenses and group budgeting
 Implement investment tracking and analysis tools
6. Research and Development
 Conduct ongoing user research to identify new needs and opportunities
 Investigate emerging financial technologies for potential integration
 Study user behavior patterns to improve the app's predictive capabilities
 Explore blockchain technology for enhanced security and transparency

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7. Sustainability Measures
 Develop a sustainable revenue model to ensure long-term viability
 Create a system for regular updates and maintenance
 Establish customer support mechanisms
 Build a community of users for feedback and feature suggestions
8. Educational Initiatives
 Develop financial literacy modules within the application
 Create partnerships with educational institutions for financial education
 Implement gamification elements to encourage better financial habits
 Provide regular financial tips and insights based on user behavior
These recommendations aim to enhance SmartBudget's functionality, expand its market reach,
and increase its impact on financial literacy and management in Kenya and beyond.
Implementation should be prioritized based on user needs, technical feasibility, and resource
availability. Regular review and adjustment of these recommendations will ensure the
application continues to meet evolving user needs and technological capabilities.
The success of SmartBudget demonstrates the significant potential for technology-driven
solutions in personal financial management. By implementing these recommendations, the
application can continue to evolve and better serve its users while contributing to improved
financial literacy and management practices in the region.

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6.3 References

1. Karl, S. (2023, May 10). YNAB vs. Mint: Which Is the Better Budgeting App? Investopedia.
https://www.investopedia.com/ynab-vs-mint-5179966
2. Holzhauer, B. (2021, May 26). The Best Budgeting Apps Of June 2021. Forbes Advisor.
https://www.forbes.com/advisor/banking/best-budgeting-apps/
3. PesaWay. (n.d.). PesaWay | LinkedIn. https://www.linkedin.com/company/pesawaylimited
4. Indeed. (2023, March 11). What Is System Analysis and Design? (Plus Benefits and Tools).
Indeed Career Guide. https://www.indeed.com/career-advice/career-development/what-is-
system-analysis-and-design
5. Super User. (2021). M-Ledger. Safaricom.co.ke. https://www.safaricom.co.ke/media-
center-landing/frequently-asked-questions/m-ledger

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6.4 Appendices

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