Page 39 - Issue 48_press_efile

INFORMATION AND TECHNOLOGY
Evolution of
Technology
Transforms
SACCO Operations
By Victor Yamame
Over the years, Savings and Credit Co-operative
Society movement has changed dramatically.
About half a century ago, SACCO
members regularly walked into a SACCO
branch to withdraw or transfer funds,
seek information on financial products,
or get their issues resolved.
The evolution of ATM has brought about
the first transformation in the SACCO and now moved on to mobile wallets and
banking industry, making 24-hr financial
transactions possible. The advent of the
internet led to further developments
in the industry, opening up multiple
channels of engagement between
consumers and their SACCOs.
At the same time, the physical aspect of
banking has started losing ground.
Due to long queues experienced at the
bank and competition from other service
providers, SACCOs have been forced to
rapidly embrace the latest technologies
to create a frictionless experience for
their customers through day to day
communication tools such as Chatbot
that responds to customers issues
instantly.
Mobile payments have made it possible
for customers to transact from their
accounts at the comfort of their home
24/7.
This kind of transformation in the field
was spearheaded by the evolution of
physical instruments like credit cards
and debit cards.
However, physical cards are gradually
losing favor, as most people have
contactless payment options.
Most SACCO’s are heavily investing in
data analytics to meet the evolving
needs of their customers. It’s clear that
the SACCO industry has recognized the
importance of customer data stored on
their servers.
SACCOs are willing to invest in technology going to work for financial institutions
to exploit this data for personalized
marketing and strengthening the security
of their systems.
To reduces cases of fraud, most SACCOs
are revamping their traditional fraud
detection systems with (Artificial
Intelligence) AI-based ones, as AI-
enabled anomaly detection makes
it easier and more cost-effective for
SACCOs to detect fraud.
SACCOs may also employ predictive
behavior analysis to identify potential
threats amongst their own employees to
prevent any scams or frauds.
In the present times, every financial
institution around the world is
leveraging modern technologies such as
cloud computing, data analytics, AI and
machine learning to deliver customer-
centric solutions. However, rapidly
emerging technologies and evolving
customer expectations mean that
businesses in the banking and financial
industry must continue innovating at
break-neck speeds, lest they become
obsolete.
In short, following trends is no longer
who wish to dominate the market. To
truly capture the hearts and minds
of their customers and secure their
business, SACCOs must tap into
immersive technologies to create highly
personalized customer experiences.
They also need to make banking more
convenient and intuitive by introducing
two-way digital conversations and taking
their services to customers’ homes
through virtual and hybrid branches via
augmented reality apps.
37| SACCO Star Magazine