Counter 1-Serve has automated the whole credit process by using a customised mobile application which connects unlimited number of borrowers to lenders. The application limits personal contact by leveraging on the digital infrastructure.
The digital disruption has in the past five years revolutionised the financial sector, both globally and locally.
The technology advancements, especially in the mobile phone-based transactions have helped Kenyans to reap the rewards of financial inclusion. Despite these digital transformation, there are still huge opportunities for innovations in various segments of the financial sector.
Mr Charles Kariuki saw one such opportunities in terms of a gap in lending among Saccos and quickly proceeded to seal it through creation of an application that eases processing and management of credit.
The platform called Counter 1-Serve, has automated the whole credit process by using a customised mobile application which connects unlimited number of borrowers to lenders. The application limits personal contact by leveraging on the digital infrastructure.
Mr Kariuki, who is the chief executive officer of Salvon Africa Limited, says Counter 1-Serve, introduced five months ago, has so far brought on board four institutions as they look to connect over 300 cooperatives in the next two years.
“The uptake of our concept is extremely exciting due to the enhanced lending platform built for the current and future generations,” he says.
“The digital space has given lenders an alternative channel to bank at any time of the day or night without the hassle of queuing unnecessarily in the banking hall.”
Some of the challenges the platform is designed to address include high default rate, huge operation costs, cash flow problems, marketing hurdles, lack of technical skills, expensive technology as well as poor service delivery.
“Our move to build this solution was inspired by our engagements and exposure in microfinance through seven years of consultancy and management of Saccos where we learnt of a number of challenges and decided to create solutions," says the innovator.
The platform, he notes is, suitable for cooperatives or microfinance institutions with more than 100 members who can have fully integrated, branded and customised portal.
Mr Kariuki says the mobile application can connect all Sacco members with full stack modules for digital credit profiling and administration as well as normal mobile banking services.
“All this comes with a flexible on boarding fee and a free trial period,” he says.
To date, the company which has set up an office on Thika Road, has 15 employees and serves more than 17,000 clients in Kenya.
Mr Kariuki says the prospects for his innovation are huge as technology remains largely under-utilised in the cooperative sector.
Much more needs to be done, he adds to take advantage of the industry that commands over Sh500 billion in savings and possesses an immense potential to be an economic driver.
Mt Kariuki advises borrowers to make good use of the numerous digital loans for good use.
“In as much as there has been a relatively successful penetration of digital loans into the market, the loans have not improved the living standards of majority of Kenyans,” he says.
He attributed the situation to the high cost of credit, inappropriate use of the loans and the fact that most of the loans do not enhance a culture of saving among Kenyans.
“It is for this reason that we have chosen the path of empowering cooperatives through enhanced technology adoption,” states Mr Kariuki.
He says cooperatives, which were established with the objective of changing the fortunes of their members for the better, have not lived up to expectation because managers have not adopted cutting-edge technology to enhance their financial services.
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