Transforming the SACCO sector for the Next Generation of Bankers
Category : Uncategorized
The Standard Newspaper on November 11, 2014 reported an unprecedented increase in number of SACCOs seeking licenses to enter the already competitive finance sector. However, majority of these SACCOs (including those seeking conversion into commercial banks) still exhibited over reliance on traditional paperwork for all their customer service processes.
Carilus Ademba, SASRA’s CEO, recognises the growing demand for more sophisticated financial products and services following demand from SACCO members. Surprisingly, majority of Kenyan SACCOs have not been able to address the aspect of convenience, which is one of the fundamental dimension of quality that defines success of financial institutions in the 21st century.
The need to transform SACCO sector for the next generation of bankers constituted one of the founding principle of Ubunifu SACCO. This would be achieved through banking processes digitalisation! The market research conducted by Ubunifu SACCO between March and May 2015 revealed that SACCO members in Kenya are still struggling with queues, lengthy paperwork and adherence to office hours for loan processing in the era when loan application would be done from members’ locations of convenience.
The urgent need for digitalisation of financial systems and processes is not optional for the current financial sector. For us to transform the banking sector for the next generation, it is crucial to adopt advanced technologies that allow SACCO members to transact as they travel, eat, sleep or even play in the fields. This implies digitalising all processes from registration, making payments, applying for loans, requesting for guarantors, and repaying the loan.
Through concerted efforts, Ubunifu SACCO has been able to achieve complete digitalisation of all its service processes. Ubunifu is proud of being the first SACCO in Kenya where a member does not need to spend resources to SACCO offices. In fact, through an advanced technological platform, Ubunifu has managed to attract cross-border membership.
As a digitalisation pioneer in the industry, Ubunifu SACCO encourages all citizens to continue joining SACCOs and enjoy financial products at minimal interest rates. While doing the same, Ubunifu further emphasises the necessity of seeking services founded on the principles of total quality management. The resultant responsiveness, competence, access, security, courtesy, credibility, and prioritising member needs will not only see the SACCOs’ profitability expand, but also promise business sustainability and improved competitive edge for benefit of all citizens.