Saccos embrace technology to stay competitive

Kenya National Police Deposit-Taking Sacco Society National Chairman David Sohelo Mategwa (Centre) and General Manager in charge of Operations Simon Tanui (second left) after receiving the ISO 9001:2015 certification from Bureau Veritas affirming the SACCO's commitment to quality and member satisfaction. [Courtesy]

Kenyan savings and credit cooperatives (Saccos) are increasingly embracing technology to enhance efficiency and remain competitive in a rapidly evolving financial landscape.

The Kenya National Police Deposit-Taking Sacco Society recently received ISO 9001:2015 certification.

Officials of the giant Sacco say this demonstrates its commitment to quality management and customer service. This followed a successful recertification audit by Bureau Veritas.

"In an environment where Saccos are facing stiff competition from digital lenders, banks, and other financial institutions, we all need to wake up and harness technology to remain relevant, competitive, and secure long-term growth," said Solomon Atsiaya, CEO of the Kenya National Police Deposit-Taking Sacco Society.

Atsiaya highlighted the importance of digital platforms, such as mobile banking, in enhancing member experience and streamlining operations. "Members should not have to physically visit branches to conduct business," he emphasized.

While over 156 deposit-taking Saccos now offer digital credit services, representing a significant increase from 64.1 per cent in 2022, many still rely on outdated and manual processes.

"Routine tasks like dividend calculations, loan processing, and account management should be automated to enhance accountability and reduce administrative costs," Atsiaya said.

Saccos that have adopted digital platforms report up to an 80 per cent increase in revenues and a 40 per cent reduction in operational costs.

However, the sector still faces challenges.

According to the 2023 Saccos Supervision Annual Report by SASRA, the sector regulator, 346 out of 684 regulated entities have not yet implemented USSD, mobile apps, or internet solutions to enhance service delivery.

Furthermore, the lack of integration with the national payment system infrastructure continues to hinder real-time transactions of large amounts of money.

By embracing technology and streamlining operations, experts reckon Kenyan Saccos can enhance their competitiveness, improve member satisfaction, and ensure their long-term sustainability in the increasingly dynamic financial landscape.