How SACCO ICT managers can drive revenue growth

In the rapidly evolving financial landscape, SACCO ICT managers hold a pivotal role in driving the success and profitability of cooperative societies. Responsible for the planning, execution, and delivery of ICT services, these managers must align their strategies with the business goals of their SACCOs and leverage technology to uncover new growth opportunities.
How SACCO ICT managers can contribute to revenue increment
Improve Service Delivery
Automation of processes such as loan applications, disbursements, and savings deposits can save SACCOs significant time and money. Manual operations often lead to fraud due to the lack of audit trails and proper approval processes. Furthermore, slow and manual processes can cause SACCOs to lose business to faster digital lenders, especially for emergency loans.
ICT managers can implement software solutions that streamline these processes, reducing the time and cost involved. Efficient and automated systems enable more frequent member transactions through SACCO accounts, thereby increasing revenue.
Prioritize Members’ Convenience
Members today demand convenience and are often willing to pay a premium for it. ICT managers can lead their SACCOs in adopting platforms like mobile banking, agency banking, and internet banking systems. These digital channels enable members to perform various transactions, such as paying bills, transferring funds, and repaying loans, without the need to visit physical branches.
SACCOs that have embraced mobile banking have seen substantial revenue growth from increased member transactions. Offering a variety of digital options ensures that members can choose the most convenient method for their needs, thereby boosting transaction volumes and, consequently, revenues.
Provide Multiple Payment Methods
Implementing diverse payment gateways that accept mobile money, card payments, and bank transfers can significantly increase SACCO revenue. By offering digital payment options, SACCOs can encourage members to make payments quickly and easily, thus enhancing cash flow and overall financial performance.
Leverage Data and Analytics
Data analytics tools are invaluable for gaining insights into member behavior and preferences. ICT managers can implement these tools to collect, store, and analyze data, which can inform decision-making and strategic planning. Analyzing loan product performance and demand over time can help in developing new products, refining existing ones, and effectively marketing them to members.
Enhance Member Engagement
Understanding and meeting the needs of SACCO members is crucial for retention and growth. ICT managers can foster better member engagement through member portals that provide access to accounts, transaction histories, and direct communication with the SACCO. Improved member satisfaction and loyalty can lead to increased transaction volumes and, ultimately, higher revenue.
Streamline Loan Processes
Providing affordable credit facilities is at the core of SACCO operations. A robust loan portfolio indicates a healthy business. ICT managers can help increase the loan portfolio by facilitating online loan applications, reducing the dependency on physical locations.
Moreover, technology can aid in reducing bad loans and improving repayment rates by providing convenient repayment options. Automated systems can send timely reminders and assist in loan restructuring for members facing difficulties, thereby boosting repayment rates and enhancing revenue.