Summary Of The Africa SaccoTech Forum

On Thursday, the dx5 (formerly CIO Africa) hosted the Africa SaccoTech Forum in Nairobi, which brought together around 200 IT experts to discuss the challenges and opportunities facing savings and credit cooperative societies (SACCOs) in embracing digital transformation.

During the Forum, various subjects were addressed, with speakers deliberating on digital transformation strategies for SACCOs. One of the primary topics of discussion was the importance of a strong core banking system for SACCOs. A core banking system is a software platform that supports and manages the daily banking operations of financial institutions, including deposit accounts, loans, payments, and transaction processing. It provides a centralized database that stores customer information and transaction data, which can be accessed by different departments and channels within the organization.

In the context of digital transformation, experts demonstrated why a robust core banking system is crucial for SACCOs. A strong core banking system is essential for SACCOs to automate their processes, integrate digital channels, cut costs and moreover, serve members better.

Another topic that garnered considerable attention was regulatory compliance. Speakers discussed how SACCOs can comply with the Data Protection Act 2019 of Kenya, which regulates how organizations manage data in their possession. As SACCOs undergo digital transformation, they must ensure compliance with data protection laws to avoid hefty penalties for non-compliance or reputation risks in case of data breaches. Organizations that fail to comply with the data protection laws in Kenya risk a fine of approximately $50,000 or one per cent of their annual turnover of the preceding financial year.

Cybersecurity was another critical area of discussion. The speakers discussed strategies that SACCOs can employ to protect their critical resources online. For example, the speakers advised SACCOs to have policies in place to provide guidance, consistency, accountability, efficiency, and clarity on how they handle cybersecurity. With critical data online, experts advised SACCOs on securing the data and mitigation measures in case of data breaches.

The forum also emphasized customer centrism. Experts advised SACCOs to place customers at the centre of their digital transformation journeys. The experts highlighted that Generation Z (Gen Zers), who now form the largest block of consumers, value premium digital experiences. To attract Gen Zers, speakers asked SACCOs to remodel their businesses to reflect changing market demands driven by technology.

Overall, the Africa SaccoTech forum highlighted the challenges and opportunities presented by technology adoption to SACCOs. It became clear that technology is no longer a supporting role in Saccos’ operation but a driver.