Savings and Credit Cooperative Societies (SACCOs) have been urged to embrace the latest technological innovations in order to catch up with market trends and safeguard their market share.
Speaking during a one-week training of Ikwera SACCO Members, held in Aduku town council, Kwania district, the former Land Minister Daniel Omara Atubu rallied the SACCO Members to join the digital lending space, especially with the coming of mobile money.
“Technology is reshaping the financial industry forcing SACCOs to match up with the trend or risk being left out. Let’s utilize mobile money for conducting business and embrace digital loans to provide quick cash to members through mobile money wallets. Entry into digital loan platforms will safeguard the market flooded by independent digital lenders such as Commercial banks,” Omara, an Economist, noted.
Geoffrey Okello, a senior accountant at the Uganda College of Commerce, Aduku, underscored the security that digital transactions offer.
“It would protect you from the danger of being targeted by thugs after withdrawing your money from the bank,” he said.
For his part, Kwania District Commercial Officer, Patrick Bura, urged the SACCO members to appoint knowledgeable leaders who can guide them on how to make the best use of their resources.
Ikwera SACCO Ltd Manager, Robert Odur, said plans are underway to integrate the SACCO members into available digital platforms, noting that it would be one way to extend financial inclusion to the unbanked.
“We need innovative ways to bring the unbanked population into the formal financial system,” Odur said.
Ikwera SACCO Ltd., established in 2009 is fully registered with the Ministry of Trade Industry and Cooperatives. However, despite having 1,037 members and growing, and a current portfolio of over Shs 300m, the SACCO is as yet not enrolled on the Mobile money system.
The Uganda Finscope survey for 2018- a periodic study of the country’s financial sector since 2006-indicates a sharp increase in the number of Ugandans who use financial services.
The total value of mobile money transactions grew from Shs 37.4 tn ($9.7 bn) in June 2016 to Shs 79.8 tn (USD 20.7 bn) in FY 2019/2020, according to Bank of Uganda data.
The survey also found that 50 percent of savers, which works out to five million adults, save informally with village savings and credit associations and trusted community members.
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