COOPSWITCH BANKING SOLUTION

HAZINA SACCO LTD.

By Wilson Asena

AREAS OF FOCUS
Description of Co-Opswitch Benefits The challenges Role of Sacco Cost implications

THE ATM BANKING CHANNEL

RELIABLE WIDE RANGE SERVICES POINT

THE CO-OPSWITCH
What is the Co-opswitch?

COOPSWITCH
Auth. Request Auth. Request

Auth. Response

Auth. Response

SACCO
Card holder @ Co-opbank ATM s and Other Banks ATM s

BENEFITS

Sacco

Sacco Members

BENEFIT : SACCOS
Increase membership Enable Saccos to remain competitive Earn fee based income Decongest banking halls Increase service touch points Save on capital expenditure Bank the unbanked

BENEFITS : SACCOS
New generation banking products e.g Co-branded cards. Prepaid cards. Marketing and promotions by the bank.

BENEFITS: MEMBERS
Convenient 24x7 banking services Purchase goods and services at visa merchants
Nakumatt , Uchumi,Tuskys Petrol stations

Multiplication of banking service points.

ATM FOOTPRINT

ATM SERVICES

Utility Payments

Balance Enquiry

Cash Withdrawal

Mini Statements

ATM FOOTPRINT
Saccos shall use atms on
Co-Opbank Network Other Banks (KCB, BBK, Stanchart) Independent ATM Providers (PESAPOINT, Kenswitch)

SACCO ATM CARD-DESIGN

THE CARD DESIGN AND USAGE

CARD PRODUCTION

CARD PRODUCTION
Sacco
Cards are ordered from the Sacco online or offline

Sacco

The Sacco is connected to an ordering system

Bank

All cards are done at de la rue and delivered to co-op bank branch near you.

PRICING

Co-Opbank ATMs Ksh. 30

Other Banks ATM Ksh. 200

PRICING

New Card Ksh. 250

Replacemen t card Ksh. 500

SETTLEMENT PROCEDURES
Sacco will be expected to settle on daily basis Sacco will be required to maintain a settlement account The bank will recover settlement amounts from the settlement account

CHALLENGES
What are the Challenges/Expectations ?

CHALLENGES
Saccos are not integrated with our back end Saccos are not centralised Saccos have numerous and different computer systems Some saccos are not computerised

CHALLENGES CONT
POS

SWITCH

Co-op Bank BANKMASTER

SACCO HQ ATM

ATM

ATM

Co-op Kwa Jirani

OTHER BRANCH

IMPLEMENTATION STRATEGY

1)1) COMMS COMMS COMMS

TRANSMASTER

SACCO HQ

2) BRIDGE
ATM

ATM ATM ATM POS

3) UPGRADE OR NEW SOFTWARE

ROLE OF SACCO Customization and installation of software Interfacing sacco backend to co-opswitch Interfacing sacco backend to co-opswitch

ROLE OF SACCO

continued

Centralization of distributed branches Ordering cards Recruitment

CONNECTION PLAN
SHORTRUN
Connect head office for saccos with branches

LONG RUN
Connect branches Centralise

COST IMPLICATIONS

COST IMPLICATIONS
PREPARITION OF BACKEND

THIS COVERS
New software Upgrades Computerization

ALL COSTS ARE BORN BY THE SACCO

COST IMPLICATIONS
Connects Sacco software to switch Sacco to use a bridge by a vendor that is acceptable to the bank(cost should include upgrades Mobilebanking/pos) Price of bridge negotiated with vendor

COST ESTIMATES NAIROBI

Bridge Telcoms or KDN License ( $ 1,650) Maintenance ($1,620) 300,000 200,000 140,250 137,700 777,950

COST ESTIMATE UPCOUNTRY

Bridge GPRS Connection ( $ 1,650) Maintenance ($ 1,620) TOTAL 300,000 156,000 132,000 129,600 717,600

INTEGRATION ACTION POINTS

HIGHLEVEL WORKPLAN

PRODUCT PRESENTATION

SIGN AGREEMENT

SET UP PROJECT TEAM

PURCHASE COMMUNICATION EQUIPMENT

INSTAL COMMUNICATION EQUIPMENT

TEST THE INTEGRATION

TRAIN STAFF

ACTION POINTS
TESTING OF BACKEND Integration starts with;
Confirmation that the backend can communicate with the switch Bank project managers will; Arrange for testing of your bank end

ACTION POINTS COMMUNICATIONS

Request for the bank to review your communication equipments. Choice of equipment is strictly determined by location

PROJECT TEAMS
PROJECT TEAMS CONVERT INTO ATM DEPARTMENTS. THEREFORE TEAM SHOULD COMPRISE
Fosa manager IT manager Marketing/customer service Audit Internal audit

TESTED SYSTEMS
Sacco solution Horizon Asmas Fine xtreme Banker s realm Codic Navision

TRAINING FOR SACCOS

Branch visits

Co-opswitch procedures training

TIMEFRAMES To integrate the Sacco in 2 months

ARE YOU UP TO THE CHALLENGE ?

SACCOS ON CO-OPSWITCH
Kenya Police Sacco Afya Tharaka nithi Magereza Bandari Kakamega Nyandarua Teachers Comoco Baringo Farmers Kipsigis Teachers Baringo Teachers Nakuru Teachers Laikipia Teachers

Muhigia Sacco Sukari Sacco Chai Sacco Chuna Sacco Asili Sacco Ndege Chai

Wanaanga Transcom etc

Kenpipe

Safaricom

ASANTE SANA