Why SACCOs should adopt a cloud-based IT platform

Small Savings and Credit Co-operative Societies (SACCOs) now have the opportunity to eliminate the cost of purchasing computer servers and employing ICT personnel by leveraging cloud-based technology. The initial capital expenditure (CAPEX) required for setting up on-premise technology has traditionally made it challenging for small SACCOs to utilize technology to reduce costs and enhance efficiency.
While traditional financial institutions such as banks were initially hesitant to adopt cloud-based technologies due to security concerns, recent times have seen a shift as they recognize the benefits it offers. SACCOs should follow suit and embrace cloud platforms, considering the advantages they provide.
Cloud computing, also known as “cloud storage,” is a technology for storing data over the internet. It encompasses various services like servers, software, networking, storage, databases, and analytics delivered over the internet. Cloud computing allows organizations to access computing services such as servers, storage, databases, and software over the internet on a pay-as-you-go basis.
Companies offering cloud computing services, known as cloud providers, typically charge based on usage, similar to utility billing. Cloud computing offers benefits such as cost-efficiency, flexibility, scalability, and security.
How SACCOs can benefit from cloud computing
1. Reduced Total Cost of Ownership
SACCOs can avoid heavy investments in dedicated hardware, software, and manpower by leveraging cloud computing. They can update their IT infrastructure more easily, paying only for the hardware and software they need.
2. Increased Efficiency
Cloud computing improves efficiency ratios and operating leverage for SACCOs. The standardization inherent in the cloud facilitates the integration of new technologies and applications, driving out complexity.
3. Faster Service Delivery
SACCOs can develop and launch new products and services more quickly with cloud computing. They can boost computing power to meet demand peaks and provide the latest treasury solutions without worrying about technology updates.
3. Cybersecurity Protection
Cloud computing builds technical controls to protect access to SACCO members’ personal data and funds. It helps mitigate losses from internal and external fraudsters and identifies and addresses cyber security risks faced by the organization.
4. Cost-Effective Cybersecurity Solutions
SACCOs can access cyber security services as a low-cost solution through cloud computing. Cloud services provide remote data management and offer a new perspective on assessing cyber security risks.