Reasons Why One Needs To Join A SACCO
These are what society needs when a country’s economy is strongly affected by a global pandemic. Lockdown restrictions and the resulting economic shock have impacted many people who are facing a financial crisis.
Several people are supported by Savings and Credit Cooperative Societies (SACCOs). They can save money and apply for low-interest rates loans. Members have the opportunity to benefit from simple loan terms and conditions. Compared to traditional banks, SACCOs offer members better interest rates if members need a loan during these challenging times.
SACCOs proved more popular amongst people from previous generations. They who are used to visiting SACCOs branches and saw the benefits of becoming a member of SACCO from a long way off. What also contributes to this sense of community is the fact that there is usually a common factor between SACCO members; for example,
- they work in the same organization, industry or
- reside within a similar geographical space.
With the financial crisis and more people than we can keep up with retrenchments, SACCOs are highly influenced. Members suddenly have to withdraw their savings to sort out basic needs. In times like these, society must collaborate and jointly create a comfortable environment for everyone. Joining a SACCO now will contribute to the nation’s economic resilience and in turn, boost the institution’s ability to support members. Starting to save money will further generate a healthier financial situation for members even once a crisis comes to an end.
Digital Transformation
This unpredicted situation also urges SACCOs to become more innovative. This is by choosing to go fully digitized with their operations that allow members to transact anywhere. As SACCOs embrace current technological transformation, they enhance their ability to supporting their members in difficult situations.
Digital transformation has the ability to pull more members especially the younger generation kind. The current generation is tech-oriented. They are used to smooth digital consumer experiences and would like to check their financial status within seconds or initiate transactions from the flexible digital accessories.
SACCOs that have embraced technology are safer than SACCOs that still use and depend on traditional processes. The reason being cloud-based platforms store information more securely, with multiple backups that cannot be compromised by natural calamities.
This eases critical processes such as:
- auditing,
- enables effortless compliance, and
- guarantees members the safety of their accounts.
A challenge that SACCOs might face when implementing their digital transformation is how to choose the banking platform that provides appropriate services. These are the two important ways to consider:
- It is important to look for partners that offer outstanding customer support. This will assist staff to familiarize themselves with the platform and its functionalities.
- User-friendly platforms should be a high priority, so staff can adapt processes easily and seamlessly.
Conclusion
Joining a SACCO now is a great opportunity to start saving and contributing to SACCOs’ resilience. Aside from that, SACCOs offering digitized services will be better prepared to welcome the current generation which leverages financial inclusion.