How SACCOs can Increase Deposits (Using a SACCO System)
An increase in deposits is a good thing for any financial institution. Using the right SACCO System will definitely help you out with this.
The COVID impacts have affected most SACCOs because most members increased their withdrawal rates and reduced deposits.
To add on, there has been an increase of loan defaulters amongst SACCO members.
In this post, I am going to share with you how you can increase deposit rates with your SACCO members.
Have a good online presence
Online presence for your SACCO simply means having active social media pages/ accounts and a good website.
Besides using these platforms as marketing tools, prospective members can get more information about the SACCO there and share their details for registration.
Your website should have an extension of the members portal.
Through the portal, prospective members can conduct self-registration and even invite their friends and relatives.
The online presence will also help you boost the SACCOs credibility by;
1. Showcasing some of the SACCOs projects
2. Success stories from members
3. SACCOs annual financial performance
4. AGMs conducted
5. The board and SACCO’s management etc
Understand Your Members Needs
You can help anyone solve a problem that you have no clue about.
The same principle applies to your SACCO and the members.
To be relevant to members and help them reach their goals, you need to understand their needs and objectives.
You can do this by simply using a SACCO system that supports business analytics. This will help you understand your members and profile them according to their needs and goals.
Combine this with surveys from your current members. You can conduct surveys either online, offline in the banking halls, or both.
For online surveys, you can use free platforms like Google Forms.
From this exercise, you can be able to get data like;
1. Deposit and withdrawal frequencies
2. Optimal times when deposits are high
3. Products or services that are in high demand
4. Areas that need improvements to serve members better
You can therefore use this information to develop tailored products to serve your members’ needs and improve your services.
Make Use of Mobile Banking
SACCOs that use mobile banking systems end up improving their services, memberships, and revenues.
Check out the bellow case studies
When you offer your members a convenient way of making deposits, they will end up increasing their deposit rates.
This will be a win-win situation for both the SACCO and members because;
Members will end up saving more with will help them achieve their goals quicker.
The SACCO will have more cash on hold to invest in profitable projects and offer loans to more members.
Since the introduction of M-Sacco, it has become a great innovation for Sacco to create convenient and effective personal banking solutions for members. This platform enabled us to roll out a new loan product – The ‘Jiokoe loan’. The platform introduces the ‘do it yourself’ concept that affords members the ability to transact from anywhere, any time, and from their own comfort. Members can make payments, check balances, and transfer funds from the M-Sacco wallet to M-Pesa accounts. In addition to bringing efficiency in terms of access of funds to our members, the Jiokoe loan has greatly increased profitability increased loan book.
C.E.O/Postbank Sacco Society Ltd
Empower Your Team with The Right Tools
Your team in the SACCO directly affects the kind of service your members get hence revenues.
Using a good SACCO system, your team can serve members quicker and in an efficient manner. This is because they are working conveniently by using the right tools.
A system that has everything your staff needs, eg
1.All reports required by the SACCO
2. Easy approvals
3. Easily accessible by authorized users
4. A good user interface to help them navigate easily to complete tasks
5. Secured to help them work in a safe environment
6. Reliable support etc
Also, consider your sales and marketing teams.
While they are conducting member recruitment in the field, they need tools that support them, register members, quickly and capture the correct details.
During such field exercises, most SACCOs tend to lose very prospective members due to the long registration process or capturing the wrong data.
Tools like agency banking systems will help your team register your members in real-time and capture the right member data.
If you use a good SACCO System that enables you to integrate with other systems like an agency banking system, can be very helpful to you.
Invest in Members’ Education
One of the best forms of customer service you can offer your SACCO members is financial literacy and investment education.
If you invest the time and resources to teach your members about the importance of saving and the best ways of saving, they will end up increasing their deposits to the SACCO.
Once members find value in your services, they will definitely want to save more with you so that you can work together on reaching their goals.
Growth in deposits will definitely grow your SACCO.
Try the above techniques and make use of the mentioned tools to offer members more convenience and grow the SACCO both in revenues and membership.