Members of Capital Sacco can now make payments using cheques following a partnership between ABC Bank and the Sacco. The deal will see ABC Bank provide cheque clearing services to Capital Sacco, which has 15 branches.
Through the partnership, the Sacco will issue personal cheque books to its close to 150,000 customers. ABC Bank will be the clearing house through which the cheques will be processed. This will increase ease of payments and improve efficiency of doing business for the Sacco members.
Saccos do not offer certain products such as cheque books, Real Time Gross Settlement (RTGS) and Electronic Funds Transfers (EFTs). This forces Sacco members, especially those operating businesses, to turn to commercial banks for these services. Consequently, Saccos register significant customer attrition and stiff competition from commercial banks and deposit-taking microfinance institutions.
By introducing cheque books, Capital Sacco will provide its customers with an additional secure payment solution which also gives them more control of their funds. The Sacco has 14 branches in Mount Kenya region and one in Nairobi, and offers a wide range of financial services such as individual and group savings, agricultural loans, mobile banking among others, to the mainly agricultural Meru and adjacent counties.
“This solution is part of ABC Bank’s plans to provide more relevant financial services to the small and medium enterprises, who are key drivers of the economy,” said ABC Bank Group Business Development General Manager, Peter Kinyanjui, during the launch ceremony.
ABC Bank has entered into similar partnerships with other Saccos such as Fortune, Bingwa, Imarika and Unaitas, as well as Postbank, to enable them offer a wider range of services beyond what they are mandated to offer on their own.
Speaking during the launch, Senator Kiraitu Murungi, who was the chief guest, said: “This partnership will facilitate the unlocking of the entrepreneurial potential of Meru residents by enhancing ease of payments”.
Mr. Kinyanjui added: ‘‘ABC Bank is keen on empowering Saccos and other microfinance institutions in their quest to offer a wider range of services to their customers in order to become more competitive in meeting the needs of their market.”
The partnership is part of ABC Bank‘s efforts to boost the cooperative sector’s competitive advantage to best achieve their business goals, and to offer a seamless, convenient and comprehensive financial services experience to their members.
“We are now able to satisfy the demands of our members who have historically maintained multiple accounts to enable them access all the services they need under one roof. We will also aggressively pursue new markets and opportunities which have been created for youth and women in our county’’ said Capital Sacco CEO Mr. Eliezer Kaburu, adding that the partnership will enable the Sacco to catalyse enterprise growth by providing tailored products that satisfy customer expectations.