Cooperatives working for decades have become a data mine. They have recorded and managed huge amounts of data such as contributions, loans, shares, income, account balances etc. This data, if utilized properly, can bring tremendous benefits to cooperatives and other organizations like banks.
As a tech-driven organization, we believe our Credit Association Management System (CAMS) can harness the power of this data and reap its true benefits.
CAMS digitizes the operations of SACCOs so all the data traditionally stored in registers can be made available digitally. It improves the accessibility and shareability of the data, allowing cooperatives to enhance services and make data-driven decisions.
Profitable loans for SACCOs
Providing credit services to members while generating interest income is one of the main goals of SACCOs. They generally offer affordable loans with flexible repayment schedules to serve their members better. Although this improves satisfaction, it can sometimes lead to late payments or no repayment (bad debts).
Using the data available through various reports, SACCOs can perform effective risk management for profitable lending. They can predict the chances of loan repayment and minimize the risk of bad debts by analyzing data such as the history of previous loans, income, assets, and more. After analyzing all this information, SACCOs will be in a better position to increase their chances of getting profitable loans.
Furthermore, they can improve the ease and speed of lending for members who have been active borrowers and repaid their loans in time.
Effective financial reporting
SACCOs create various types of reports to meet compliance requirements. CAMS significantly improves the reporting process by collecting and organizing data. This completely changes the way SACCOs generate and submit reports.
With CAMS, SACCOs can strategically generate reports to gain deeper insights into their operations and their services. Some examples of reports that CAMS can generate automatically:
- Loans to women
- Total repaid loans
- Unpaid loans
- Interest income
- Loans in the agriculture sector
This data will also be readily available to management and admins for better transparency and real-time accessibility.
Massive credit history
The digitization enabled by CAMS unlocks the extensive transactional data accumulated by SACCOs. Traditionally, this valuable information was buried in physical records, making it difficult to utilize effectively. By bringing this data into a digital format, CAMS enables SACCOs to build comprehensive credit profiles for their members.
A robust credit history is crucial for assessing the credit score of members. This score can be used internally by SACCOs and shared with external financial institutions like banks. This unlocks new avenues for members to borrow bigger loans and better financial services and products.
CAMS has the potential to bring tremendous benefits to the informal financial sector. Book a free demo today for more information.
