In today’s world, Information and Communication Technology (ICT) has become a crucial investment for Savings and Credit Cooperative Societies (Saccos) to stay competitive and enhance their performance and profitability margins.
Recent adjudication by the Cooperative Alliance of Kenya (CAK) highlighted the need for Saccos to invest heavily in technology to remain competitive in the market.
With the adoption of technology, Saccos can make their services accessible to their members and serve them more efficiently at minimal costs. Members’ awareness of the societies’ processes will also increase, which is crucial for success.
The CAK assessment conducted by Co-op Consultancy and Bancassurance Intermediary (CCBI) during Usirika Day considered four parameters, and management information systems and technologically enabled products had the highest weighting at 30% each. This was used to determine the Best Saccos in Technology Optimisation.
Communication channels such as emails, SMS, WhatsApp, Facebook, Twitter, and Skype were given a 20% weight. The existence, accessibility, and services available on the website were also evaluated. The use of technology has become essential in the growth and success of Saccos in today’s market, and it is crucial to invest in it to remain competitive.
Furthermore, a number of Saccos have invested heavily in their social media platforms to interact with their members and inform them about new products and services.
In addition, some Saccos are reevaluating their expansion strategies through agents to maintain their core bases of clientele and membership and ward off competition from other digital credit providers. The use of technology is a game-changer for Saccos, and it is essential to invest in it to remain relevant and competitive in today’s market.
According to SASRA, “As a means of maintaining their core bases of clientele and membership, as well as ward-off competition from other digital credit providers, regulated SACCOs have progressively adopted and launched digital credit products tailor made and delivered to their clients using digital devices.”
