Savings and Credit Cooperative Organizations (SACCOs) have been challenged to adopt new technology to penetrate in the current business market.
Speaking during leaders’ meeting and launch of Ushirika activities Cooperative Bank of Kenya vice chairman Macloud Malonza said saccos should also intensify investments in product development to endure the current market competition.
Malonza said Saccos should now be competing with commercial banks.
“We have witnessed a thorough business rivalry from the big boys in the money market, a trend putting more pressure on the financial cooperatives. The commercial banks, owing to their modern and high expertise and increased liquidity, can penetrate more business segments,” said Malonza.
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Malonza said cooperative movement leaders need to fast-track new approaches based on increasing investment in modern technology, product development and enhancing customer approach.
He urged the Saccos to widen their scope of investments, especially targeting information and Communications Technology (ICT) and invest in research and development to be aware of the changing market dynamics.
By Obegi Malack
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