Trans-Nation Sacco eyes agency banking to grow presence

By John Majau

Trans-Nation, one of the fastest growing Saccos has kicked off elaborate plans to start agency banking in a move meant to capture a greater market share within Tharaka Nithi, Meru, Kitui and Isiolo counties.
Trans-Nation Sacco Chief Executive Officer, Ransam Mugambi Nthiga said plans to turn the organisation into a banking agency are already at an advanced stage.
Speaking in Meru town recently, Nthiga said the agents are normally authorised to offer selected products and services on behalf of the bank after a successful application, vetting and approval by the relevant authorities.
“Elaborate plans by a fast-growing Sacco to start an agency banking in order to capture more clients are underway. Our Sacco is currently operating in four counties namely Tharaka Nithi, Meru, Kitui and Isiolo,”he said.
Agency banking is a new banking model where financial institutions in Kenya that are regulated by Central Bank of Kenya legislation are allowed to contract a third party retail networks banking agent.
Upon successful application, vetting and approval, these agents are authorised to offer selected products and services on behalf of the bank.
“We want to go the agency way where we will also seek to partner with our members”, said Mugambi.
He said they will be visiting the business premises of the interested members in order to establish whether they qualify to give the agency services to the residents on behalf of the Sacco, noting that the agent will be paid in commissions.
Nthiga noted that opening more branches may not help much in reaching all the places but with agency services they will get to every place. The services will complement the existing branches especially in busy towns like Maua where there are many customers who cannot be satisfactorily served in a single branch.
“Our main aim is to ensure we go to remote areas like Wamba and Tseikuru where people haven’t known much about banking and savings so we can sensitise them on this,” said Nthiga. Trans-Nation Sacco opened its doors in 1993 after splitting with Mwalimu Sacco.

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