In today’s digital age, it’s essential for businesses to have a strong online presence. Kenyan Savings and Credit Cooperatives (Saccos) have not been left behind in adopting digital technology. With the increasing demand for financial services, Saccos are digitizing their processes to meet the needs of their members.
One aspect of this digitization is the creation of a digital footprint, which refers to all traces left by an organization on digital platforms. This includes social media accounts, websites, online banking portals, among others.
The country has one of the highest rates of mobile phone penetration in the world, and many Saccos are using this to their advantage to reach a wider audience and offer convenient services to their members.
Through social media platforms such as Twitter and Facebook, Saccos can promote their products and services while engaging with potential and existing members.
On the other hand, having a website allows Sacco members to access vital information such as loan application forms and account balances from anywhere at any time without visiting physical branches. Additionally, making use of mobile banking apps provides more convenience for members who can manage transactions via mobile phones whenever they need it.
People are particularly concerned about the online identity of saccos – it’s how they perceive the sacco based on what it does and says online. These people can include potential members, competitors, industry experts, the regulator, or even government agencies.
With over 20 million internet users in Kenya, failing to establish a robust online presence can result in missed opportunities and lost revenue. The Sacco Societies and Regulatory Authority (SASRA) gave a nod for a total of 176 Deposit-Taking Saccos and 183 Non-Deposit-taking Saccos to continue their business in the financial year 2023. This means saccos will recruit and add more clients to their lists of thousands of members.
Thus, more and more people are continually turning to the internet for financial services, and that means having a robust digital footprint can make all the difference in attracting and retaining members.
And the efforts of one sacco that caters to teachers in Nairobi County is a vital example. In 2019, the sacco established its digital footprint by creating a website, mobile application, and social media accounts. These digital platforms made it easier for its clients to access information about the sacco’s services, make loan applications, and save money. The sacco also introduced a biometric registration process that improved its data collection and verification processes. As a result, its loan repayment rates went up by 20%, and customer satisfaction increased by 30%.
Sacco B provides agricultural financing services in the Rift Valley region. In 2020, it launched a digital platform that enabled farmers to apply for loans and receive funds directly to their mobile wallets. This reduced the turnaround time for loan applications from two weeks to 48 hours. The digital platform also allowed this sacco to monitor loan disbursements and track repayment rates, resulting in a 25% increase in loan disbursements and a 15% reduction in default rates.
The success stories of Sacco A and B highlight the benefits of implementing a digital footprint strategy for cooperative societies in Kenya. They show that the adoption of digital platforms can help Saccos streamline their services, improve customer experience, and increase loan disbursements and repayment rates.
However, not having a digital footprint can put Saccos at a disadvantage in terms of competition, member satisfaction, and regulatory compliance. It can also limit their ability to reach new members and expand their services.
For a Kenyan Sacco looking to attract new members and build trust with existing ones, creating a strong digital footprint that offers easy accessibility enables it to keep up with competition in providing excellent member experience which will lead towards higher customer loyalty going forward.
A strong digital presence can also provide more visibility and credibility, enabling people or potential recruits to make better decisions about the sacco and what it does, allowing it to reach out directly to its customers through targeted advertising campaigns while also creating brand awareness.
But building a strong digital footprint brings many advantages when done correctly. Establishing the sacco as an authority in the industry with valuable content creation and engagement online provides numerous opportunities for growth in the industry!
How to create a strong digital footprint? The first step is to establish an online presence by creating a website or social media accounts. Saccos should ensure that the website has relevant content that reflects their brand’s values and offerings.
Next, optimize the website for search engines using keywords relevant to the sacco business. This will make it easier for potential customers or members to find the sacco when searching online.
Another way of building a strong digital footprint is through content marketing. Create engaging blog posts, videos or webinars that provide value to the sacco’s target audience.
Furthermore, saccos can engage with their audience on social media platforms by responding promptly to their inquiries and comments. They can monitor all mentions of the business brand on different platforms to be aware of what people are saying about them. And responding positively to negative feedback can help saccos build trust with current members while attracting new ones in the process.
Ultimately, Saccos that invest in digital footprint will be better positioned to meet the changing needs of their members and contribute to the growth of Kenya’s economy. The benefits of a robust digital footprint cannot be overstated, and Saccos that embrace this technology are poised to remain competitive in the rapidly changing financial landscape!
