Simple Ways SACCOs Can Reduce Fraud Using Reliable Core Banking Solutions

Fraud prevention for SACCOs

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Have you been trying too hard to protect your SACCO from fraudulent activities? If that’s you then this is an article for you. I will be sharing with you how a good core banking solution can help financial institutions like yours avoid running into losses through fraudulent activities


Granting your staff at the SACCO system privileges depending on their roles is very key in fraud prevention.

Everyone will be responsible for their own actions which makes it easy to track their activities on the core banking system.

Imagine a situation whereby all your staff can access the system on a common account using the same credentials, how would you know who was responsible for which activity?

Controlling users’ rights will help you track everyone’s activities and eases the process of audit trail hence saving time and resources.

core banking system access

Dual transaction approval

Requiring two approvals on transactions and loans from two people within your financial institution can reduce the number of fraudulent transactions in your organization. To avoid creating bottlenecks, you can enable bulk approvals or require dual approvals only on transactions that are above a minimum value.


Engage members with SMS

Your SACCO members can play a role in your financial institution’s fraud prevention when you offer SMS messaging services. With SMS messaging, members receive a message confirming their account activity: loan disbursement, loan repayment, deposits, and withdrawals.

This gives you more reason to settle for a core banking solution with simple and reliable integration features. You can integrate both systems whereby any of the transactions conducted, a member will always have the complete detailed information.


Make use of Document Management System

Using an electronic document management system will help safeguard important files and help your SACCO comply with the SASRA reports rule.

Also, this will help curb faking of signatures and make better use of electronic signatures for approvals such as huge loan approvals.

Vital documents access can be limited to authorized personal, which guarantees accountability and safety.

electronic document management system

Make use of Business Intelligence

Business intelligence will help you track members’ activities and transactions. This will also help you establish a pattern or routine and help you make better decisions.

For any suspicious or unusual transactions, you can easily tell from the analytics results, which will give you a valid reason to dig down into the investigation.


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