Kenya Post Office Savings Bank, Postbank Kenya has launched a mobile banking service ‘M-Chama’ for small savings groups. The product aims at allowing members to use their mobile devices to transact group business.
M-Chama allows members in a formal group to make deposits into the group’s joint account using M-Pesa as well as requesting 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.
“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 MD Postbank.
Currently 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.
The invention 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.
The launch comes at a time when the financial sector is accelerating its shift in customer behavior trends from traditional banking and towards digital banking.