Your Savings are Safe
Something exciting is happening within the Sacco industry- digital transformation. Savings and Credit Co-operative Societies (Saccos) are investing heavily in modern information technology to improve their service delivery. Like in all other sectors, there are numerous challenges related to the use of technology. The good news is that Saccos are facing them head-on. Latest Serianu Sacco Cybersecurity Report 2020/2021 research findings indicate that Saccos are increasingly investing more resources in technology and security.
Although there are increased targeted attacks on Sacco mobile transaction infrastructure, Saccos are building a strong IT infrastructure by investing in knowledge and mutual partnerships. They are slowly shifting from heavily relying on IT vendors.
The Sacco sector is increasingly using new technology as deposit-taking societies create innovative solutions and automate the delivery of financial services. Competition from banks and digital-based financial institutions, the drive towards cashless societies, and the proliferation of app banking have pushed Saccos to up their game.
Today, banking with a Savings and Credit Co-operative Society is an experience of convenience and efficiency made possible by innovative financial technology. More and more fintech firms are working with the co-operative societies providing critical infrastructure to help them digitize and extend their services countrywide, albeit digitally. Â
“The Sacco sector is increasingly making use of new technology to better service delivery,” says Serianu in the report.
The percentage of Saccos that have a cybersecurity strategy improved from 38% in 2019 to 55% in 2020, according to Serianu analysis, which notes that there has been a consistent increase in cybersecurity budget in the Sacco industry over the last three years that is attributed to:
- Increased awareness on the importance of cybersecurity
- Increased attacks targeted towards Saccos
- Digitization and adoption of new technology channels
Most of the Saccos that are licensed and regulated by the Sacco Societies Regulatory Authority (SASRA) are spending hundreds of millions of shillings on their IT platforms as competition from banks, microfinance institutions, and other digital lenders get stiff. This can be attested by the latest budgets being presented to members during general and special annual meetings for approval.
The commendable efforts are despite lack of technical skills in the country. According to Serianu, Kenya has approximately 1700 skilled cybersecurity professionals serving over 40 million Kenyans. Organizations struggle to find the right experts to assist in Anticipating, Detecting, Responding, and Containing Cybersecurity issues within their systems. Procuring, integrating, maintaining systems require highly skilled staff.
Saccos are more and more becoming popular investment vehicles for Kenyans. Analysis from the sub-sector regulator shows investing in licensed Saccos is safe. Join a Sacco now.
