Kenya Post Office savings bank, Postbank has launched its mobile banking service M-Chama to target small savings group in the country. The app allows members in a formal group to deposits into the group’s joint account via M-Pesa. It also allows 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 the groups’ designated signatories.
In addition to this, the service permits signatories 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 MD Post Bank, Anne Karanja.
The product currently serves close to 2,300 groups. Post Bank expects to recruit 3,500 more groups by the end of 2018 following a rise in popularity.
M-Chama was innovated to enable small groups to contribute positively towards their economic development and as a deterrent to the risks that come with physically handling group’s monies