A lot has been said and written concerning MSMEs and their invaluable role in local economies. Despite their informal status, MSMEs enable communities around them to access basic commodities and services and alleviate unemployment.
However, the formalisation of these crucial components of the commerce sector would bring in a new dimension of advantages not discovered before. It is not only important for a business to rake in profits and maintain a loyal client base, but also to expand and upscale.
Kingdom Bank‘s M-Collections solutions is leveraging on the penetrative advantage of mobile-based payments technology to enable small businesses to enjoy banking services at the click of their mobile phone.
Traditional banking methods can be complemented by digital solutions to reach out to millions of small business owners wishing to access loans and investment opportunities. For this reason, Kingdom Bank has joined the fray of other institutions in unleashing banking services tailored specifically for this sector.
Customers receiving various services or products from an MSME, can send payments to the seller’s M-Collections account. They just need their mobile phone to send the money through reliable and convenient devices like the Till Number or the Paybill.
Business owners, on the other hand, are assured that their money is safe. Moreover, they can instantly access the deposited money whenever they need it. Kingdom Bank helps small businesses by cheaply managing their money, encouraging a savings culture which may salvage a business during tough times.
Owners of small businesses can also access mobile loans which they can easily repay within a short time. The M-Collections solution has understood the power of incentivization. Bank loans have always roused fear in the hearts of their recipients. This is because the scale obtainable before was not conducive for smaller businesses.
Kingdom Bank has tailored the M-Collections solution to help the MSMEs sector transition to the formal economy. By enabling customers’ financial needs, the bank will accelerate their livelihoods and optimise their survival rate and growth potential in the market.
The M-Collections solution is a necessary step in building a credit score for MSMEs using it, determining how much financial infusion each business needs. These loans can be used to restock businesses and make small additions to the business – without diluting it with too much money.
The Kingdom Bank’s M-Collections solution is just one of the ways MSMEs can enjoy the benefit of low cost transactions, save money with ease, and slowly accept the helping hand that is banking to the growth of any business. In the long run, MSMEs will stamp their presence in the macroeconomic environment and influence key monetary policies.
The M-Collections solutions are working towards ensuring smaller businesses tap into the power of efficiency in driving growth. By providing a platform to enable easy transactions between customers and between them and suppliers, businesses no longer have to worry about delays and can easily make timely decisions advantageous to their enterprise.
