A large percentage of the developing world's population lives in rural areas. Savings mobilized by efficient and well-managed local financial institutions could finance increased levels of development investment in rural areas. The depositors at the Marangu West Savings and Credit Co-operative are not only the bank's customers, but also its owners and managers. Membership has grown from an initial group of 60 to nearly 2 000. The service instills trust in the system through careful record keeping.
Many rural people are unaware of how banks use their money, so trust is important.
Successful small rural banks inspire depositors' trust by observing the same rules as larger banks in urban areas. Transparent teller windows, for example, allow depositors to observe transactions. Access to adequate technology is also important. A banking software developed and distributed by FAO has helped many small rural banks to maintain accurate records. With the software, managers and tellers feel more confident, a feeling which they in turn communicate to customers.