Postbank Kenya today launched a mobile banking service for small savings groups, which allows members to use mobile devices to transact business.
M-Chama allows members in a formal group to make deposits into the joint account using M-Pesa. The platform also enables them 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 signatories. Signatories of the investment group can also check account balances.
“To facilitate the delivery of cost effective and affordable financial services, we have leveraged on technology,” said Postbank Managing Director Anne Karanja. “This is a differentiator in the market since customers are not required to visit Postbank branches to transact.”
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M-Chama is an addition to the bank’s Mobile and Internet Banking services. The product has about 2,300 groups registered and expects to recruit 3,500 more groups by the end of the year.
M-Chama has improved banking experience for individuals with group savings as members are not required to physically visit the bank’s branches or ATMs to transact group 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,” Ms Karanja said.
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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 finances.
As has been the trend for organized groups, specified amounts are contributed including payments of loans advanced to members and interests and re-invested. The surplus is banked using the M-Chama platform.
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