Blockchain technology is the new kid in the block that could forever alter the digital landscape of the Sacco sector in Kenya.
Blockchain is a distributed ledger that can keep track of the transactions happening in a number of machines and does not allow the retroactive alterations of records without the alteration of all subsequent blocks and the collusion of the network.
This was revealed during a recent panel discussion on the Digital Insurance Forum that was held in Nairobi.
David Piesse, Chairman International Insurance Society (IIS) Ambassador Program highlighted that blockchain technology is capable of transforming Sacco services provision in Kenya and the continent at large.
Piesse said blockchain technology will completely revolutionise digital Sacco operations in Kenya.
The demand to bring about revolutionary and evolutionary changes has always been an underlying ripple in every aspect of business, and in the field of Saccos this is done with a sense of unique urgency.
High quality service provision with the added benefit of reasonable costs leads to the members-centricity concept.
The adoption of blockchain technology in the Kenyan Sacco sector will contribute to strengthening co-operative systems and accelerating the attainment of President Uhuru Kenyatta’s Big Four Agenda.
To make this a reality, it is important to remove middlemen dependency. This is where blockchain comes into the picture.
Blockchain technology is built on distributed architecture and gives access to chronologically arrange relevant data for recording and storing transaction records.
The technology works on the ‘append only’ open ledger where the nodes within the network are authenticated and all the transactions that happen within the network are added to the ledger.
Member transaction data management is a major advantage of blockchain technology. By enabling Sacco IT systems with technology, all existing challenges that the industry faces like security, reliability, privacy and even data interoperability are met and curbed.
With this technology, Sacco data becomes more easily managed, while saving money for members.
Use of blockchain technology in the Sacco sector thus will engage millions of Kenyans, business entities, researchers, Sacco services providers to share vast amounts of data released to every aspect of life with guaranteed privacy protection and security.
Sacco Review | The Leading Newspaper for Co-operative Movement in Kenya
The Leading Newspaper for Co-operative Movement in Kenya
