WSBI assists member PostBank Kenya to launch product linking savings groups to bank via mobile platform.
BRUSSELS, 12 September 2018 – Technical support by WSBI helped seed the successful launch by Postbank Kenya of a mobile banking service for small savings groups. The service is aimed to allow members to use their mobile devices to transact groups' business.
The product, dubbed M-Chama allows members in a formal group to make deposits into the group's joint account using M-Pesa. The platform also allows members to request loans from their group's account with the funds being sent to either the members' individual accounts or to their M-Pesa accounts upon approval by the groups' designated signatories. Additionally, the mobile banking service permits signatories of the investment groups to check account balances.
“Postbank Kenya has purposed to offer affordable banking services to all citizens. To facilitate the delivery of cost effective and affordable financial services, we have leveraged on technology. This strategy, with innovation and development, will reach its full potential." said, Ms. Anne Karanja the Managing Director.
M-Chama is an addition to the bank's Mobile and Internet Banking platform. The product has about 2,300 groups registered and is expected to recruit 3,500 more groups by the end of the year due its' growing popularity.
M-Chama has improved the banking experience for individuals with group savings as members are not required to physically visit the bank's branches or ATMs to transact their groups' business. M-Chama guarantees safe money storage and instant money transfers. The product also offers a low cost, easy-to access benefits to its users.
The development of M-Chama was informed by the need to ensure that small groups contribute positively towards their economic development and defy risks associated with physically handling group's monies. As has been the trend for organized groups, specified amounts are contributed including payments of loans advanced to members and interests on these loans and re-invested. The surplus is banked using the M-Chama platform.
M-Chama is an addition to Postbank Kenya's impressive technology product portfolio which continues to propel the Postbank Kenya to great heights. Postbank recognizes and appreciates the technical support of WSBI among other partners in the development and roll out of this product.
At the recently held Savings Groups 2018 biennial Conference in Kigali, Rwanda whose theme was 'The Power of Savings Groups Inclusion', Postbank Kenya was recognized among 205 organisations and 50 countries to showcase her technology in serving Savings Groups.
The Kenya Post Office Savings Bank (Postbank Kenya Kenya) was established in 1910. Similar Savings services were offered across the East Africa region. When the East African Community broke up in 1977, the Kenya Government established its own savings bank. Postbank Kenya is primarily engaged in the mobilization of savings for national development and operates under the Kenya Post Office Savings Bank Act Cap 493B. In addition, the bank offers local and international Money Transfer Services, Government collections and disbursement services.
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