HOW SACCOs BENEFIT FROM AGENCY BANKING & MOBILE BANKING SYSTEMS

Benefits of agency banking and mobile banking systems to SACCOs

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SACCO members want services closer to them and accessible at any time they want. The ultimate answer to this challenge is implementing alternative channels for your members. Those are; mobile banking solutions, agency banking systems, members’ portals, and TMs.

Whenever you try accessing government services to their various physical offices, you will always find long queues. I’m sure there’s someone inside you who always complains about this. Well, your SACCO members have the same feeling every time you force them to make queues for hours just to access services such as loan applications.

So, in this blog, we are going to discuss how you’re SACCO and the members can benefit from alternative channels and where you should get started.

 

IMPROVED CUSTOMER EXPERIENCE

In the financial service industry, great customer experience is key. Your members have millions of options to save and invest in, from neobanks, commercial banks, trust funds, and MFIs.

What’s that one thing that will keep your members active and loyal to your SACCO?

Take your services closer to them and give them a great digital banking experience. They are already struggling to earn that money, so don’t make it difficult for them to deposit or withdraw from their accounts.

A great experience will keep your members happy and give them more reasons to invest with you.

 

COST REDUCTION

It will cost your SACCO millions of Kenya shillings to open a single fully operational physical branch. Imagine opening one branch across each county just to deliver services to your members all over the country?

This will save you the costs you may incur through rent payment, IT infrastructures, power, and labor associated with the physical branches.

Probably you think you are just a local SACCO and a single branch can work for you. Don’t you have plans to increase your membership across the country rather than just being a local SACCO?

To be successful with that, implement alternative channels for members to access your services. Even if you may decide to open branches all over the country- which is costly- you still need to find alternative channels. This is because most of your members are on an 8 am to 5 pm working hours and your operational hours maybe 8m or 9 am to 4 pm or 5p. This simply means they won’t have the time to visit your branches for services, therefore they should access all the services on their phones whenever they need to.

 

 

INCREASE MEMBERSHIP AND MARKET SHARE

In today’s world, where convenience is key for everyone, your prospective members will always want to find out how easily accessible your services are before they join.

Actually, in our last survey, 80% of members said that convenience is a key factor affecting their choice of SACCO to join.

With alternative channels in place, your marketing teams can easily conduct mass member registration whenever they go to the field. With solutions such as agency banking, this is something successful SACCOs have enjoyed the benefits.

 

 

INCREASE IN REVENUES

Besides interests in loans and other forms of investments, SACCOs also make money through members’ transaction fees.

Offering your members convenient means to transact in their SACCO accounts, e.g. using mobile banking, will encourage them to transact more because they can save time and money.

Hence, the more members transact, the more revenues your SACCO will make.

 Lainisha SACCO got an increase in revenues by 85% using our mobile banking and agency banking systems.

 

IMPROVED LOAN PORTFOLIO

An increase in loan demands is a good thing for any stable SACCO.

This means that more revenues will be distributed to members and more will be earned by the SACCO through interests in loans.

We know SACCOs for offering better credit terms compared to banks and digital lenders. One thing that these two had done better than SACCOs was convenience and quick service delivery.

Fortunately for SACCOs, platforms such as M-SACCO which have instant loans features, your members can access a loan in a minute or a few seconds on their phones. No queues, no paperwork, just like the digital lenders.

With M-SACCO on your side, your members will have no reason to borrow from other lenders.

The same case applies to agency banking. Members can visit their nearest agents and access credit facilities from the Sacco in a matter of minutes.

Greenland Fedha generated over Ksh 500 million worth of loans using our agency banking solution. 

 

 

Conclusion

These are just but a few benefits SACCOs can get from offering alternative channels to their members.

It’s no longer a luxury for SACCOs to embrace digital for better customer service delivery. Today, this is a need for any financial institution.

You can start your journey today by booking a free and practical demo of our mobile banking system trusted by over 50 SACCOs and agency banking solution to offer members better services as you increase the SACCO’s revenues.

 

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