What is the difference between BOSA and FOSA?

In the realm of Savings and Credit Cooperatives (SACCOs), BOSA stands for Back Office Services Activity. But what exactly does this entail, and how does it differ from FOSA?
Difference between BOSA and FOSA
BOSA essentially represents the backbone of SACCO’s financial operations. It involves the monthly deposit made by members, which serves as the foundation for various financial transactions within the SACCO.
These deposits, often referred to as non-withdrawable deposits, cannot be accessed by members unless they take out a loan or decide to withdraw from the SACCO.
Essentially, the funds deposited in BOSA act as collateral for loans, guaranteeing access to credit for members. Moreover, these deposits accrue interest or rebate at the end of the fiscal year, providing members with additional benefits.
The key distinction between BOSA and FOSA lies in the nature of the services they offer.
While BOSA focuses on providing financial support through loans and interest accrual, FOSA, or Front Office Services Activities, functions as the banking arm of the SACCO.
Unlike BOSA, FOSA offers transactional accounts that allow members to access their funds while still being active members of the SACCO.
These accounts may serve as salary pay points, and funds can be accessed through various channels such as Visa-branded ATMs, mobile banking, and over-the-counter transactions at the SACCO’s premises.
Additionally, FOSA members can utilize ATM cards for transactions not only at SACCO branches but also at Co-op bank branches, enhancing accessibility and convenience.
While BOSA facilitates long-term savings and loan facilities within a SACCO, FOSA caters to members’ immediate financial needs through transactional accounts and convenient banking services.