the only sacco in lamu partners with ABC bank for cheque clearing

Members of Lamu teachers Sacco can now make payments using cheques following a partnership between ABC Bank and the Sacco. The deal will see ABC Bank provide cheque clearing services to the teachers Sacco, which has 5 branches. Through the partnership, the Sacco will issue personal cheque books to its close to 1,000 customers. ABC Bank will be the clearing house through which the cheques will be processed. This will increase ease of payments and improve efficiency of doing business for the Sacco members. Saccos do not offer certain products such as cheque books, Real Time Gross Settlement (RTGS) and Electronic Funds Transfers (EFTs). This forces Sacco members, especially those operating businesses, to turn to commercial banks for these services. Consequently, Saccos register significant customer attrition and stiff competition from commercial banks and deposit-taking microfinance institutions. By introducing cheque books, Lamu teachers Sacco will provide its customers with an additional secure payment solution which also gives them more control of their funds. “This solution is part of ABC Bank’s plans to provide more relevant financial services to the small and medium enterprises, who are key drivers of the economy,” said ABC Bank Relationships and sacco manager Wilson Assela on Saturday. Assela said that ABC is looking for value addition to support the cooperative movement, citing that business people and medium entrepreneurs need financial services. ABC Bank has entered into similar partnerships with other Saccos such as Fortune, Bingwa, Imarika and Unaitas, as well as Postbank, to enable them offer a wider range of services beyond what they are mandated to offer on their own. Speaking during the launch, Senator Deputy county commissioner Stephen Sangolo said it is an eye opener for teachers and other business owners since they will be able to get loans easily. Sangolo also said that with this move, development is going to be achieved since many Lamu people are business, “This partnership will facilitate the unlocking of the entrepreneurial potential of Lamu residents by enhancing ease of payments” said Sangolo. Assela said that ABC Bank is keen on empowering Saccos and other microfinance institutions in their quest to offer a wider range of services to their customers in order to become more competitive in meeting the needs of their market. The partnership is part of ABC Bank‘s efforts to boost the cooperative sector’s competitive advantage to best achieve their business goals, and to offer a seamless, convenient and comprehensive financial services experience to their members. Lamu teachers sacco chief executive officer Michael Kirui said that this will enable the sacco to increase its capital assets, where during the last financial year the sacco had 200 million capital asset with a profit of 3.5% where they expect it to increase. Kirui said that the partnership will improve service delivery to its clients where it will also open doors to other business people who are not teachers. He said that since lamu is in remote areas of the country, through automation, they will be able to reach its members who are in the areas using the technology,where it has opened doors for competition with other banks. Lamu teachers saccos outlets are in Faza,Mukowe,Hindi,Mpeketoni and Lamu island. Saccos chairman Joseph Agutu said that the members who left the sacco will come back since there is noother sacco in the county, only banks. ends...