Co-operative societies are being challenged to enhance use of technology in creating new business models that would help Saccos grow membership, collect deposits and sustain their growth.
Co-operative Development Principal Secretary, Ali Noor Ismail says Saccos should also leverage on technology in securing their processes and enhancing the efficiency of their personnel.
The latest Financial Access Report 2019 indicates that technology helped increase financial access through formal sources to 82.9 percent in 2019 up from 75.3 percent just three years ago.
Mobile money, according to the report, was the main game changer in the increase in financial access.
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This is also backed by the Economic Survey of 2019 that indicates that the output of the ICT sector expanded by 12.9 percent in 2018 to 390.2 billion shillings mainly supported by growth in the digital economy.
It is based on this that Noor Ismail, is encouraging Saccos to enhance the use of technology in recruitment of members, faster delivery of services, efficiency in operations and wider connectivity.
Ismail is challenging Saccos to change their business models based on technology.
He told the National Cooperatives CEO’s Workshop, “mobile-based moneylenders are offering credit to Kenyans more conveniently without the requirements of membership, paperwork and security, which are commonly required by a Sacco. This will call for Saccos to be more innovative in the way they adopt technology and especially their mobile based loans to compete effectively.”
The PS challenged cooperatives to be quick in adopting new business models to grow members, collect deposits and sustain growth.
Noting that securing their systems was vital, Ismail encouraged Saccos to invest in cyber security systems as well as hire and train their personnel in keeping unethical system hackers at bay.
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