This archive report was first published on 25 August 2021.
As the digital wave continues to transform the financial sector, Savings and Credit Cooperatives (SACCOs) in Kenya are embracing technology to upgrade their operations. With the Sacco Societies Regulatory Authority (SASRA) setting a June 2021 deadline for all Non Deposit Taking SACCOs to have a Management Information System, the need for a reliable and efficient SACCO Management Solution has never been more pressing.
When choosing a SACCO Management Solution, there are several key factors to consider. Cost, for instance, is a significant consideration, with smaller SACCOs requiring cost-effective solutions that cater to their essential needs around compliance and security. On the other hand, larger SACCOs with millions in asset value may invest in more expensive solutions that enable them to digitize most of their offerings and serve their members better.
A shared Software-as-a-Service solution, however, offers a scalable and flexible option for SACCOs of all sizes. This approach enables SACCOs to access the same core infrastructure, allowing for differentiation at the member level and reducing the need for costly upgrades.
Another critical factor is user-friendliness. A good SACCO Management Solution should have an intuitive interface that is easy to navigate and use, reducing the time and resources required for staff training. This, in turn, leads to improved member satisfaction and loyalty.
Security is also a major concern for SACCOs, with the need to ensure that the systems they choose have robust security features to protect their data and privacy. This includes the security of information stored in the cloud and the prevention of unauthorized access by third parties.
Reliability is no longer negotiable, with system downtime potentially costing SACCOs millions of shillings in lost revenue and causing frustration to their members. Cloud-based systems should demonstrate an availability of at least 99%, with some of the best systems achieving 99.9% availability, including scheduled maintenance.
As SACCOs grow, the need to better manage information and interact with their members evolves. Therefore, it is essential to invest in a scalable solution that can adapt to changing needs and conditions. A good system should have an open API, allowing for easy integration with third-party applications and increasing the value proposition and offering for the SACCO.
By considering these seven factors – cost, user-friendliness, security, reliability, scalability, open API, and support – SACCOs can make informed decisions when choosing a SACCO Management Solution that meets their needs and those of their members.
