The world of finance is evolving at an unprecedented pace, with customers demanding efficiency, convenience and faster financial services.
This is a wake-up call to SACCOs to digitize their services to allow customers to access their accounts and perform a wide range of transactions so as to avoid losing market share to tech-savvy competitors.
“Digital services enable SACCO members to access their accounts, apply for loans and transact from anywhere, improving convenience. It also reduces paperwork and mutual processes, leading to faster and more accurate transactions and record-keeping,” Cliff Mutai, a finance consultant, says.
Mutai adds that digital technologies also help SACCOs to reduce cases of fraud, cybercrime and other forms of financial crime, hence strengthening security measures and protecting customer data.
While also easing administrative costs, digitization also supports data collection and analysis which assists SACCOs to make data-driven decisions and offer customized financial products.
Victor Hera, an official at Ranen Sugarcane Growers SACCO in Migori, notes that their manual mode of operation has slowed the growth of the institution that was founded in 2010.
On his part, John Mucheru, a Sacco member in Nairobi, says that online applications improve communication through instant notifications, alerts and personalized services.
While speaking in Meru town in June during the 30th anniversary celebrations of Solution Sacco, Deputy President Rigathi Gachagua urged SACCOs to be innovative and tap into the digital economy to expand their investment portfolios and enhance businesses.
“While we boast of the growth in membership and deposits, we must be innovative to tap into emerging high-value but ignored market bases like the digital economy. Under the Ministry of ICT, we are rolling out a 100,000 kilometre digital superhighway to create more job opportunities via online platforms.” Gachagua noted.
By Amos Kerich
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