Savings and credit cooperatives (SACCOs) are member-driven organizations that offer members savings, investments and credit facilities to generate revenue. As they operate, they promote a culture of savings and borrowing among members to foster financial growth thereby enhancing profitability. Thus, membership becomes a crucial growth factor for them.
A large membership can greatly increase lending opportunities and generate a larger pool of funds for SACCOs. This, in turn, boosts their lending capacity and allows them to offer more competitive loans and better services, attracting more profit and enhancing long-term sustainability.
Here are the 5 most effective ways SACCOs can use to boost membership growth.
- Simplify onboarding process for members
- Introduce reference bonus
- Adopt innovation for better service delivery
- Extend the range of products
- Offer attractive interest rates on loans
#1 Simplify onboarding process for members
Onboarding processes for SACCOs can be long and elaborate. Right from the application and KYC to background check and registering details, many steps can be involved which delays the joining for many members. SACCOs can simplify the onboarding process, making it easier and quicker for potential members to join the group. A faster and speedier onboarding process can significantly boost membership for any cooperative looking to grow.
SACCOs can simplify onboarding by offering online applications, digital KYC checks, and mobile-enabled processes. This can significantly fast-track the onboarding process for members and boost membership growth.
#2 Introduce reference bonus
SACCOs can introduce a reference bonus for members to boost membership growth. Offering members incentives whenever they refer a new person will encourage them to refer more people, thus increasing membership numbers.
SACCOs can offer (1) cash rewards, (2) interest-free loans, or (3) other benefits, as incentives for a new reference. This cannot only lead to membership growth but also foster community engagement and lead to a greater sense of member satisfaction.
#3 Adopt innovation for better service delivery
Adopting innovation has become crucial to every organization that aims to serve its clients better. On the other hand, clients today expect immediate and hassle-free services from the provider.
That said, an innovative system can greatly improve the quality of service delivery for SACCOs. Be it offering faster loans, convenient access to account details, or customer support, SACCOs can offer their members more convenience and cost-effectiveness. This can boost membership growth as potential members will be willing to join a SACCO that prioritizes member convenience.
Additionally, innovative systems can enhance transparency and trust, further encouraging new memberships.
With Wakandi, SACCOs can serve their members quickly and effectively by automating various operations such as:
- Loan applications and disbursements
- Contributions and repayment through mobile phones
- Financial reports
- Interest calculations
- Member KYC
Get better control of your cooperative and boost membership with Wakandi. Book a free demo today.
#4 Extend the range of products
SACCOs have become an indispensable part of the economy. They provide the underserved population with affordable financial services like credit, savings, and shares.
Expanding this range of products and services can boost membership growth. SACCOs should offer a wide range of financial services such as fixed and recurring savings, insurance, short- and long-term loans, investments, and shares to attract more potential members to join their group.
Moreover, SACCOs should also customize their offerings to meet the unique needs of members. Providing personalization and flexibility to services can also positively impact membership growth.
#5 Offer attractive interest rates on loans
One of the primary reasons people join SACCOs or other cooperative societies is to get access to affordable loans. Fulfilling this need, SACCOs can ensure a very high membership growth.
Offering affordable loan products can attract a lot of potential members who will be willing to use your products and services. Not only lower interest rates, SACCOs can also provide better terms like flexible repayment schedules, collateral-free loans, simplified applications and more.
To conclude, adopting these five ways can help you increase your SACCO membership. You can adopt one or more of these strategies to attract new members and retain existing ones, ultimately fostering growth and sustainability for your SACCO.