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Saccos with technological advancement to grow membership in 2020

2 min read
Saccos with increased member deposits and high loan portfolio tend to have a high value of total assets, keeping them a top the cooperative movement.

Sacco membership is part of the parameters that strengthens a society, fitting it the prevailing financial market conditions.

The sole purpose of many Savings and Credit Cooperative Societies, especially those operating under Deposit Taking module (DT), is to mobilize funds through members’ deposits with an aim of issuing loans at a competitive interest rate.

It is through these deposits and loan disbursement (portfolio) to members that grows the Sacco revenue, which enables it acquire a given asset base for operation in the financial sector.

Saccos with increased member deposits and high loan portfolio tend to have a high value of total assets, keeping them a top the cooperative movement.

Therefore, societies keep abreast members’ financial needs and expectation, developing modules and strategies to enable them meet their standards, thus attracting more membership subscription.

One of the strategies that has seen cooperatives grow their membership in the recent past is the dynamism in technology.

Technological changes in terms of financial transactions, communication and service delivery has seen many Saccos, which have embraced these dynamics, increase their member reach and grow members.

The year 2020 is the marker of technological advancement many Saccos could base their strategic plans towards growth and recognition in the market.

The issue of mobile banking seems to be taking financial charge in many societies across the country, easing members service delivery and engagement at the own convenience.

Following President Uhuru Kenyatta’s directive that all Kenyans should embrace cashless transactions amid fears of the novel coronavirus (COVID-19) pandemic, which has killed scores across the world, Saccos with mobile money services and online money services have their members covered and protected.

Savers across the country are now looking upon the tech-embrace societies to enjoy cashless services when paying for their bills.

A good example of such advancement is the use Mobile Applications or USSD code service to carry out a transaction.

A number of Saccos have issued out USSD code numbers for their members to access their M-Accounts, with some developing mobile applications to serve the same purpose.

SafCiri (Safaricom Sacco), M-Chipuka (Dimkes Sacco), Quickfix (a USSD *276*1# service by Mentor Sacco), M-Kimisitu (Kimisitu), Spot Cash/M-Cosmo (Cosmopolitan), among others form part of the technological emblem many Saccos have undertaken, easing members’ service delivery.

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