2020 will be remembered as the year where people depended on technology and innovation more than ever. However, before the COVID-19 pandemic hit the world, MOMBO SACCO was already putting into use great innovative and technological solutions to not only help improve the customer experience, but to guard against risks and offer simple, convenient and secure financial solutions. One of the most significant tool for the SACCO that was registered in 2015 and is regulated under the Co-operative Societies Act (CAP 490), is its customer interface platform, the MOMBO digital app. Through this mobile application, members can view their savings balances in real time and borrow without the indignity of having to check with the SACCO’s management.

The COVID-19 pandemic resulted in dramatic changes in key industries and workplaces, forcing many to stay, and for those who could, work from home. MOMBO SACCO’s place amongst a youthful and urban-oriented market segment meant that its consumer base (a majority of the SACCO’s members are below the age of 35) was already well prepared for an environment demanding smart solutions and innovation. To cushion its members against the negative effects of the pandemic, the management committee of the SACCO ratified a number of measures, such as grace-periods for loans disbursed to the most vulnerable members, and interest-relief packages. The decision to continue lending during the pandemic was informed by the fact that the Kenyan economy is largely driven by the informal and small and medium enterprises (SME) sector. With this, the SACCO supported an integral sector of the economy, in turn, helping to drive overall recovery. There was also an indiscriminate use of an internalized email platform to communicate with members, and constant messaging targeting the wider public that created awareness of the SACCO’s products via native content and social media.

MOMBO SACCO used the challenges of the pandemic as an opportunity and steered its available resources to new directions in order to survive. And it did. MOMBO SACCO increased its financing of individuals and SMEs, growing its loan book by 200%. Member savings grew more than 200% during the pandemic, demonstrating the resilience of the SACCO’s model. The SACCO management also identified critical areas to help navigate risks and make better decisions and to rebuild growth. In this regard, the SACCO created the customized MOMBO app M-Score, an advanced precision, data-analytic tool, which uses machine-learning techniques for credit-scoring. The M-Score is based on behavioral and transactional data obtained from the Credit Referencing Bureau, M-Pesa and/or Bank statements, and the member’s financial history with the SACCO. Due to this, MOMBO SACCO’s non-performing loan book was kept at less than 5%.

The SACCO’s innovative strategy of creating four savings channels – Bronze, Silver, Gold and Platinum – ensured that existing and new members pick a category of saving and borrowing that is best suited to their needs and financial ability. A system of Customer Success Representatives also ensured that member needs were catered for in a more personalized manner, detecting, early enough, points of weakness and vulnerability requiring intervention, and encouraging the less vulnerable members to keep doing better.

As the year draws to a close, the SACCO is awarding its top savers for the year. This will not only build brand loyalty, but will also encourage members to keep saving, even in turbulent economic times. To join MOMBO SACCO, simply download the MOMBO digital app, and follow the easy steps to enroll!