<aside> 💡 Introduction
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Thrift and credit society has emerged as a viable alternative to formal banking finance, filling the gaps left by traditional institutions in serving consumer financing needs.
The cumbersome legal processes and requirements associated with accessing financing from banks have led many individuals to explore alternative options, with cooperative thrift and credit finance gaining widespread popularity in emerging economies like India, Indonesia, Nigeria, and the Philippines.
<aside> 💡 Advantages of Cooperative Thrift and Credit Finance Over Formal Finance
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Easier Access: Thrift and credit finance provides a more accessible avenue for individuals compared to formal banking systems.
Reduced Legal Requirements: The thrift and credit finance model involves fewer legal hurdles This makes it easier for a broader population to access financial services.
Trust and Transparency: Operating on a community-based model improves trust and transparency among cooperative members.
Lower Interest Rates: Thrift and credit finance typically offers lower interest rates compared to formal financial institutions.
<aside> 💡 Problem Statement
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In Nigeria, despite the evident advantages of cooperative thrift and credit finance, its potential remains hampered by geographical limitations and manual management processes. Many individuals who could benefit from cooperative finance are excluded due to the narrow reach of existing cooperative bodies, primarily confined to specific institutions or locations.
This geographical constraint disproportionately affects those residing in rural and remote areas, thus, limiting their access to cooperative finance.
Further, the excessive manual and paper-based finance management makes tracking financial activities cumbersome and also introduces the risk of errors. This can compromise accountability and transparency.
Additionally, members and administrators are burdened by the need to physically travel long distances to access information about their financial standings and engage in cooperative activities.
This results in inefficiencies, delays, and increased operational costs, thereby reducing the efficient functioning of cooperative finance systems.
Therefore, the need for a comprehensive digital solution is critical to addressing these challenges. This will bridge the geographical gap, eliminate inefficiencies, and promote the extensive adoption of cooperative thrift and credit finance, especially in regions where formal banking finance options are scarce or inaccessible.
<aside> 💡 Business Case
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The Cooperative Thrift and Credit Finance Management System serves as a solution to enhance financial inclusion and operational process efficiency. This digital platform will revolutionise the cooperative finance landscape by serving interested users with no geographical barriers.