This archive report was first published on 27 November 2019.
On November 27, 2019, Sumac Microfinance announced plans to roll out a digital banking platform in December, marking a significant milestone in the company's growth.
According to Chief Executive John Njihia, the locally developed platform will be available to members through a mobile app, USSD channel, and official website-based platforms, unlocking a branchless network running on a cloud-based platform.
Speaking during the official opening of the Thika branch at Nafelin Plaza, Mr. Njihia emphasized that the digital platform will enable members to transact their banking business on a 24-hour basis, responding to the need for access to loans and money on weekends, at night, and on holidays.
"We are responding to a need by our clients who want access to loans and money in their accounts on weekends, at night and on holidays wherever they are. This will be done via secure passwords that members will be given," he said.
Sumac's loan book has grown significantly, increasing from Sh458 million to the current Sh1.4 billion, while deposits have hit Sh600 million from Sh135 million reported three years ago.
The 8,000-strong member microfinance company received Sh2 billion from US-based Social Investment Managers & Advisors (Sima) for onward disbursement as loans to its members for the purchase of off-grid solar products.
Additionally, a Dubai-based firm, Badoer Investments, acquired a 15.6 percent stake in Sumac in mid-2018, injecting Sh100 million and providing the lender with new financial muscle to expand its services and network.
Sumac's market share has also increased, from 0.7 percent at the end of 2018 to 1.3 percent.
The opening of the Thika branch adds to Sumac's branch network, which now consists of five branches, including two in Nairobi's Ngara Park Road and Koinange Road, as well as Nakuru and Githunguri outlets.
