There are many reasons why a savings group should go digital. One of these is the comfort level when it comes to accessing mobile financial services. The unbanked masses in Africa are also very dependent on savings groups for their credit.
In times of crisis, savings groups should start adopting digital channels that can minimize human contact. This is the reason why m-Pesa is such a success story. On top of being very innovative they are more secure and have a better experience when it comes to transferring money than an average savings group because of integrating with technology that is easy to use.
Digitization of a savings group can make its transactions more secure, convenient, and transparent. It can also help minimize the overall expenses of a savings group.
Digitization can also benefit savings group as it can allow them to reach out to the people who are not yet familiar with their financial services. It can also create a new generation of customers by using a platform and a medium that is familiar to them.
Mobile money transactions also help save members’ time and energy by allowing them to collect or repay their money anytime. They can also avoid the risk of carrying out physical transactions with other group members. As a result it will create a positive customer experience for everyone.
An innovative and strong digital platform would also be able to combine numerous savings groups with similar group savings strategies. Members on the platform will also have access to their personal digital wallets, where they will be able to collect and disburse funds straight into the savings group's mobile wallet.
The members can also leverage this digital platform or application to request for loans. Once the loan is approved, the amount can be disbursed through mobile money transfer. Similarly, members can also repay their loans via mobile payments. Apart from withdrawals deposits, and loans, many other services can also be added in on the digital platform like an online marketplace, blogs, newsletters and reports