Saccos all over the world play a critical role in promoting financial inclusion through provision of financial services to members.
However, membership size can have a direct impact on their long-term sustainability. This means that a Sacco with a large membership is more likely to be stable.
There are a number of strategies in which a Sacco can increase and grow its membership size over time, which may include but not limited to the following:
Provision of financial literacy to members
One of the proven strategies that Saccos can explore to increase membership is the provision of regular membership education and awareness, especially on matters pertaining to financial literacy and investment skills.
It is the noble duty of any particular Sacco to provide members with information on the benefits accruing from joining the Sacco and patronizing its products and services.
This is done normally through various communication channels, which include online and offline channels such as social media, email newsletters, brochures and educational workshops.
Provision of attractive interest rates
One main reason people join Saccos is to earn interest and dividends on their savings from their investments. It is against this background that Saccos should strive to offer competitive interest rates on savings and loans, hence attracting new members and retaining existing ones.
Offer a wide range of financial services
Any serious Sacco should consider providing a wide range of financial services. Take into account the fact that members join Saccos for different reasons, including access to affordable credit facilities and a platform to save or invest their income. This calls for coming up with a variety of attractive products and services that your members can benefit from and even refer their family members, friends and colleagues.
Improved and efficient service delivery
For Saccos to attract more members into their fold, they should prioritize the provision of quality and excellent customer service. This involves ensuring that members are served promptly, their queries are resolved quickly, and their needs are met.
Establish strategic partnerships
Establishing strategic partnerships with other organizations can broaden and expand the Sacco’s network, hence reaching and attracting new members. These partnerships could include local businesses, schools and community groups. These partnerships naturally assist your Sacco to increase its visibility and build trust and confidence within the community.
Embrace the right technologies
With the fast-changing technology-backed business landscape, any serious Sacco should embrace technology to enhance their operations. This includes investing in digital banking platforms such as mobile and internet banking.
Offer flexible and better loan terms
Offering flexible and better loan repayment terms, which include longer repayment periods, flexible repayment schedules and low interest rates, will naturally attract new members who are looking for affordable and flexible loan products. It is important for any Sacco to enhance their loan application processes, making them simple and faster.
Establish customer referral programmes
It is crucial for Saccos to establish a referral programme as an incentive to the existing members who will in turn refer their friends and family members to join. This initiative could include offering rewards such as cash bonuses or interest rate discounts. Having done that, your Sacco can tap into the power of word-of-mouth marketing and attract new members to its fold.
Leverage on digital marketing potential
It is evident that the majority of the world’s population has migrated to digital platforms and spends most of their time there, especially on social media. These could be your prospective potential customers-cum-members and a good number of them are in need of the financial services you offer.
A good online presence builds a Sacco’s credibility because when a member wants to do due diligence, first they will search for your Sacco online, check on reviews from your existing members and look at your dividend rates and product offers.
Engage in Corporate Social Responsibility (CSR) programmes
To make your Sacco’s presence felt by the communities, then you should implement CSR programmes within areas of jurisdiction as a demonstration of commitment to the community.
In doing so, your Sacco can build trust and goodwill, which can translate to increased membership.
By Ben Oroko
The writer is a communications practitioner and correspondent based in Kisii.
benoroko2000@yahoo.com
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