BENEFITs OF AGENCY BANKING & MOBILE BANKING SYSTEMS TO SACCOs
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. These are; mobile banking solutions, agency banking systems, members’ portals, and ATMs.
You will always find long queues whenever you try accessing government services at their various physical offices. I’m sure there’s someone inside you who constantly complains about this. Well, your SACCO members have the same feeling every time you force them to make queues for hours to access services such as loan applications.
So, in this blog, we will discuss how you’re SACCO, how the members can benefit from alternative channels, and where you should get started.
IMPROVED CUSTOMER EXPERIENCE
In the financial service industry, excellent customer experience is critical. 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 Kenyan shillings to open a single fully operational physical branch. Imagine opening one branch across each county 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 8 am to 5 pm working hours, and your operational hours may be 8m or 9 am to 4 pm or 5p. This means they won’t have the time to visit your branches for services. Therefore they should access all the services on their phones whenever needed.
INCREASE MEMBERSHIP AND MARKET SHARE
In today’s world, where convenience is vital for everyone, prospective members will always want to find out how easily accessible your services are before joining.
In our last survey, 80% of members said that convenience is a crucial factor affecting their choice of SACCO to join.
With alternative channels in place, your marketing teams can efficiently conduct mass member registration whenever they go to the field. Solutions such as agency banking systems are something successful SACCOs have enjoyed their 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.
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 the SACCO will earn more through interest on 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 loan 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 of loans using our agency banking solution.
Conclusion
These are just 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 SACCO’s revenues.
