Assignment: Data Modeling Challenge
Who are we?
Funding Circle is the world's leading marketplace exclusively focused on small businesses. We provide a platform for businesses to borrow directly from a wide range of investors.
Objective
Imagine Funding Circle hasn't been built yet. There is no website or backend application. It is just an idea in somebody's mind and we have chosen you to help us model the systems from scratch. We require you to translate the below requirements into a logical data model and present this in the most appropriate way. Please note - we are looking for database structure not a process flow.
Loan lifecycle process:
• Small businesses (borrowers) can apply for a loan
• If the application is successful, it is listed on a marketplace where multiple investors can fund a part of the loan (loan part), until the full amount of the loan has been funded.
• Once a loan has been fully funded, the borrower receives the full amount and a monthly repayment schedule is generated.
• The borrower then makes a repayment according to the schedule, that repayment gets distributed between investors according to the value on each loan part.
• In addition to the initial purchase of the loan parts there is a secondary market where Loan part can be bought or sold to a different investor.
• There is no limit on how many times a loan part can be bought or sold.
Requirements:
1. Design operational database to support the process described above
2. Design reporting database schema (if different from the above) to serve Daily snapshot report:
- Be able to report total outstanding amount per Investor per day (any historical day) , taking in account repayments.
- Be able to report unique number of businesses Investor being exposed to per day (any historical day)
Provide reasoning for your decisions.