Impact of Co-operative societies Front Office Banking Services (FOSA), on the Co-operative societies

Abstract

The purpose of this study is to investigate the relatively new concept of provision of banking services by co-operative societies. The operation of this services and their impact on the co-operative societies, its members and the financial sector at large had not been documented.

This is an exploratory research seeking to explore and bring to better understanding this product in the financial sector. Being a Certified Public Secretary of Kenya, the starting point was: - 1. To establish the legislation under which this services are registered if any so as to establish their scope and limitations'. 2. The relationship between the co-operative societies offering this services and the Co-operative Bank of Kenya limited was established. 3. The research also see ked to establish the eligibility of customers, and looked into the growth of deposits and membership in the period, they have been in existence. 4. Lastly the research established the growth potential within the niche market and determined their long-term viability using existing financial and mathematical ratios.

The data collected was mainly secondary data from the organizations records. It was organized and analyzed in line with the study's objectives.