Mobile banking is reshaping the landscape for SACCOs in Kenya. This great leap forward has offered a number of benefits, enhancing not only the efficiency of SACCO operations but also contributing to the rapid growth of membership and revenue. Today, let’s delve into the ten key reasons why mobile banking is becoming an indispensable tool for SACCOs aiming for growth and improved service delivery:
- Widened reach: Mobile banking allows SACCOs to extend their services beyond geographical barriers, reaching both remote areas and urban members with busy schedules.
- Increased membership: By making it easy to join your SACCO online, SACCOs can attract more members. For instance, Kwara clients see their membership double in just over a year after introducing mobile banking.
- Battling competition: With mobile banking, SACCOs can offer a broader range of services, including instant digital loans, competing with digital lenders outside of the SACCO.
- Staff can grow members: By allowing members to view statements themselves or reconcile deposits made via mobile banking, SACCO staff can focus on serving and growing members with field visits or marketing.
- Real-time data access: Mobile banking provides SACCOs with up-to-the-minute information, facilitating informed decision-making on where the SACCO can grow.
- Enhanced financial literacy: With educational resources and budgeting tools, mobile banking helps members to better understand and manage their finances, making SACCOs more attractive to younger people.
- Transaction speed: Mobile banking empowers members by providing them with direct control over their financial transactions, allowing SACCO to provide speed at par with banks.
- Increased deposits: Incentives such as bonuses on airtime purchases encourage members to make regular deposits, boosting the financial health of SACCO.
- Automated loan applications: Instant loan approval and disbursement mean that members can rely on their SACCO even in times of emergency, making SACCOs attractive to join.
- Higher revenue and dividends: More members and increased transactions lead to higher revenue for SACCOs and larger dividends for members, as seen with dozens of Kwara clients, who grow their membership by over 90% each year.
As we have seen, mobile banking’s influence on SACCO growth is multi-faceted. It not only simplifies operations and attracts more members but also rebrands SACCOs as a whole. As more SACCOs leverage the power of mobile banking, their future looks more solid, and brighter than ever.
I hope you find this as exciting as we do! Stay tuned to our blog for more updates on the world of mobile banking.
