Bosak Microfinance Bank enhances savings culture among clients

After a successful penetration into the market and gaining customers’ confidence, Bosak Microfinance Bank Limited, Lagos, has decided to introduce a new product called ‘Better Life Savings.’

Consequently, the bank which is one of the leading microfinance banks with over four years of experience in the financial sector and with strong capital base, recently launched the product that encourages clients to save while servicing their loans, and is recording a tremendous success.

Kola Bello, managing director/CEO, Bosak Microfinance Bank Limited, who spoke at Group Leaders Congress forum organised by the bank in Lagos, says the basic needs of the poor are access to income, health, education of their children and hope of a home, and Bosak Microfinance is committed to improve the lives of Nigerians.

“Once every poor person is able to overcome these challenges, the person is out of the poverty circles. One of the basic facilities we offer our clients is access to loans to grow their business to earn more income. We are also offering health insurance and education, we are partnering with an health insurance company, such that a family of four can benefits from this package provided they pay their premium regularly. We provide such family access to credit for a year. The premium is stretched in such a way that it will be convenient for savers to pay.

“To encourage savings and increase membership, Bosak is also giving out N500,000 worth of scholarships to 20 children from 2014/ 2015 academic session. The best group that is upright in terms of loan repayment are the beneficiaries,” according to Bello.

Responding to challenges facing microfinance banks, he says the major challenges microfinance institutions face are confidence and bad perception; people have the mindset that microfinance banks can close up at any time. Bosak has successfully penetrated the market by boosting their confidence level with the clients, and with over 15,000 clients.

Bosak Microfinance Bank is making plans to convert to state licence from a unit licence it operates currently. “To get state licence from the CBN, open more branches and grow the business. The focus of Bosak is expansion of the business. To increase the staff strength from 168 to a higher level,” he says.

Bello explains that the Group Leaders’ Congress is a forum under which the leaders of various trade and solidarity groups under Bosak Microfinance Bank’s Group Lending Model are brought together twice every calendar year to interact with the bank’s management.

At the forum, issues bothering on how clients can be served better, social impact assessment of loan products, loan repayment model and convenience were discussed among other issues. The Congress, which is usually organised and directed by the Executive Committee drawn from leadership of various solidarity groups, also afforded the bank the opportunity to show appreciation to the Group Leaders through scholarship awards to children of some of the leaders as well as distribution of items of need in a bid to give back to group leaders who work hard at ensuring success of the solidarity groups and help them move quickly above poverty line.