The primary function of a cooperative credit society provides loan to millions of underbanked, who do not have a credit score nor credit history and in some cases, may not have an asset to pledge.
These underbanked become members of various cooperative credit society by either taking a loan or owning a share in those societies. One of the major credit society is the Primary Agricultural Credit Societies (PACS). There are more than 90,000 PACS all over India serving about 120 millions of underbanked individual with the necessary loan for their farm-land needs.
Did you know cooperative credit societies in India disbursed loans worth about $24 billions in 2018?
Yes, that’s right! and about 10% of every loan that got processed by these cooperative credit societies was wasted in operating cost alone.
That’s true. These societies have various challenges in operating their business.
In 2019, their critical processes are all manual. Customer onboarding, accounting, and bookkeeping are recorded in pen and paper format which has huge risk. Some societies would have software or tools to record these data but have high risk when involving human to manually enter into those software.
When it’s time to disburse loan to the customer, the customer has to physically visit the branch to collect a part of loan in cash given over the counter. That’s appalling.
Coop by Kred solves most of the challenges faced by these societies. Kred understands the value of their business and the impact that goes beyond the business opportunity.
Coop by Kred empowers a cooperative credit society to become a modern digital bank. It allows them to upgrade their capabilities by moving their operations to the cloud & managing them from a secured web browser.The customer onboarding process includes the verification of the customer by e-KYC.These cooperative credit societies can now carry out payment, repayment & reconciliation processes automatically.
For the first time, their customers will have their own digital bank account linked to an ATM card for receiving and repaying their loans. Eclipsing the current cash model for a completely digital bank account.
The key values that Kred brings into cooperative credit societies are,
By digitization and automation of processes and operations, Kred reduces their costs by up to 80%! Kred makes a recurring revenue from the cooperative credit society.
By aggregating various financial services, Kred helps cooperative credit societies in opening up new revenue streams. Kred receives commissions from the rendered service.
By providing a better experience to the customer of cooperative credit society which is localized, mobile and instant, Kred helps in customer retention to these credit society. Kred receives fee from every digital transaction
The digital consumer lending market in India alone is expected to grow 5 times in the coming years to a trillion dollars. The impact goes beyond the business opportunity; Kred gives 100s of millions of Indians their first digital footprint, providing them with a better financial future.
— Stay Tuned.
The Kred Team
