Postbank has launched a mobile banking application to increase transparency and accountability among investment groups known as chamas.
Managing director Anne Karanja said the product dubbed M-Chama automates the processes of investment groups by tracking all transactions such as withdrawals, funds transfer and deposits.
It allows members in a formal group to make deposits into the group’s joint account using M-Pesa.
The platform also allows members to request loans from group account with the funds being sent to either the members’ individual accounts or to M-Pesa accounts upon approval by the groups’ designated signatories.
The mobile banking service also permits signatories of the investment groups to check account balances.
“Postbank has purposed to offer affordable banking services to all citizens. To facilitate the delivery of cost effective and affordable financial services, we have leveraged on technology. This strategy, with innovation and development, will reach its full potential,” said Ms Karanja.
“This is a differentiator in the market since customers are not required to visit Postbank branches to transact.”
M-Chama is an addition to the bank’s mobile and internet banking platform. The product has about 2,300 groups registered and is expected to recruit 3,500 more groups by the end of the year, Ms Karanja said.