Many SACCOs face a difficult question: how do they attract younger members and remain relevant to a generation with different financial habits and expectations?
Young people are an important market for SACCOs because they are entering the workforce, starting businesses, earning incomes and making long-term financial decisions. However, many young adults are also comfortable using mobile money, digital banks and financial technology platforms.
This means a SACCO cannot simply expect young people to join because membership is available. It has to demonstrate why membership can improve their financial lives.
Here are practical ways SACCOs can attract and retain younger members.
Understand what young people want from a SACCO
The first step is to understand the financial challenges facing young people.
A young employee may be struggling to build savings while paying rent, supporting family members, repaying student loans or starting a business. Another may be looking for capital to launch a small enterprise.
Others may be interested in investing, buying land, building a home or preparing for retirement but do not know where to start.
SACCOs should therefore avoid treating young people as one uniform group.
Member research, surveys and direct engagement can help SACCOs understand the specific financial needs of different groups.
The information can then be used to design products that address real problems.
Make membership easy
A complicated registration process can discourage potential members before they even become customers.
Young people are accustomed to opening accounts and accessing services through their phones. A SACCO that requires multiple physical visits and extensive paperwork may appear inconvenient.
Where technology and regulations allow, SACCOs should simplify membership processes through secure digital platforms.
The objective should be to make joining straightforward while maintaining the necessary identification, compliance and verification requirements.
Build strong mobile services
For many young people, the phone is their primary financial tool.
They use mobile platforms to send money, pay bills, purchase goods and manage everyday transactions.
SACCOs therefore need reliable digital services if they want to compete for this market.
Members should be able to access essential services conveniently through mobile platforms, including checking balances, making savings contributions, receiving notifications and accessing other available services.
A strong digital experience can make the SACCO feel more relevant to younger members.
Develop products for young professionals
Traditional SACCO products may not always address the immediate needs of young professionals.
A SACCO can consider products designed around the financial realities of people at the beginning of their careers.
These could include affordable savings plans, emergency savings, education financing, asset-financing products, business loans and investment-oriented products.
The important point is that products should be based on actual member needs rather than simply giving existing products new names.
Help young people start businesses
Entrepreneurship is an important part of the financial lives of many young people.
Some are running small businesses while working formal jobs, while others are pursuing entrepreneurship full time.
SACCOs can attract this market by providing responsible business financing alongside financial education.
Young entrepreneurs may also need guidance on cash-flow management, record keeping, budgeting and separating personal finances from business finances.
A SACCO that provides both financing and financial knowledge can establish a stronger relationship with young entrepreneurs.
Teach them about money
Financial education can become one of the most effective ways of attracting younger members.
Many young people earn money for the first time without receiving formal training on budgeting, saving, borrowing or investing.
SACCOs can organise financial literacy programmes in workplaces, universities, colleges and professional groups.
Topics can include how to create a budget, how to build an emergency fund, how interest on loans works, how to avoid excessive debt and how to plan for long-term goals.
The education should be practical rather than simply promotional.
A young person who receives useful financial guidance may eventually see the SACCO as a financial partner rather than simply another institution trying to sell a loan.
Use social media properly
SACCOs need to go where their potential members spend time.
Young people are highly active on social media, making platforms such as TikTok, Instagram, Facebook, LinkedIn and X potential channels for financial education and engagement.
However, simply posting advertisements may not be enough.
SACCOs can create short, useful content explaining savings, credit, investment, budgeting and other financial topics.
For example, a SACCO could explain how much someone needs to save every month to reach a particular financial goal or explain what to consider before taking a loan.
Useful content can create engagement and introduce the SACCO to people who may not otherwise consider joining.
Be transparent about costs
Young members are likely to compare financial products before making decisions.
SACCOs should therefore clearly explain interest rates, fees, penalties, repayment periods, withdrawal conditions and other costs.
Avoiding complicated language can make products easier to understand.
Transparency can also help build trust, particularly among young people who may have limited experience with financial institutions.
Create a welcoming member experience
A young member should not feel out of place when interacting with a SACCO.
SACCO branches, digital platforms, customer service channels and member meetings should be accessible and welcoming to different generations.
Staff should also be trained to understand the needs of younger members.
A young person asking basic questions about savings or loans should receive clear answers rather than being made to feel inexperienced.
Give young members a voice
Attracting young people is not only about selling products to them.
SACCOs should also give them opportunities to participate in the institution.
Young members can be included in financial literacy programmes, innovation initiatives, member forums and other engagement activities.
Their feedback can help the SACCO understand changing expectations.
Where the SACCO’s governance structure and rules allow, young members can also be encouraged to participate in leadership and decision-making processes.
This can help create a stronger sense of ownership.
Partner with universities and workplaces
SACCOs can reach potential young members through institutions where they already spend their time.
Universities, colleges, professional associations and workplaces can provide opportunities for financial education and membership drives.
Instead of simply setting up a stand and distributing brochures, SACCOs can organise financial clinics where young people receive practical advice on managing income, saving and borrowing.
The institution can then introduce relevant products to people who express interest.
Reward consistent saving
Young people may find it difficult to maintain a savings habit when income is limited or irregular.
SACCOs can encourage consistency through products and programmes that make regular saving easier.
The emphasis should be on developing a habit rather than encouraging people to save unrealistic amounts.
A young member who starts with a modest contribution and increases it over time can develop a strong long-term relationship with the SACCO.
Avoid making loans the main attraction
A common mistake is marketing a SACCO primarily as a place where people can get loans.
While credit is an important SACCO service, young people also need help building savings, investments and financial security.
If the first message a potential member hears is about borrowing, they may view the SACCO as another source of debt.
SACCOs should instead communicate the broader value of membership, including savings, financial education, investment opportunities, affordable credit and member ownership.
Make the long-term benefits clear
Young people may not immediately appreciate the importance of saving for goals that are decades away.
SACCOs can help them understand the value of starting early.
Someone in their 20s has more time to build savings, accumulate assets and prepare for retirement than someone who begins at 45.
Financial education can demonstrate how small, consistent contributions can grow over time.
This can help young members see SACCO membership as a long-term financial relationship rather than a service they use only when they need a loan.
Listen and adapt
Attracting young members is not a one-time campaign.
Their expectations will continue to change as technology, employment patterns and financial services evolve.
SACCOs should regularly collect feedback, monitor member behaviour and assess which products are being used.
If a product is not meeting members’ needs, the institution should be willing to review it.
The same applies to communication channels and service delivery.
The goal is to build lifelong members
Young people do not necessarily need a SACCO that tries to imitate a bank or fintech company.
They need an institution that understands their financial realities and makes it easier for them to save, invest, borrow responsibly and plan for the future.
For SACCOs, attracting younger members should therefore go beyond advertising.
It requires convenient digital services, relevant products, financial education, transparent pricing, good customer service and opportunities for young members to participate in the institution.
The SACCO that builds a relationship with a member when they are starting their financial journey has an opportunity to remain their financial partner for many years.
Author: Andrew Walyaula
Andrew Walyaula is a seasoned multimedia journalist. Email: [email protected]
