WHAT IS SACCO CORE BANKING SYSTEM AND ITS ADVANTAGES TO SACCOs?
SACCOs have been having a rough time providing members with quick and convenient er the years. Automation using a good SACCO core banking system is the ultimate solution for SACCOs to be able to overcome their challenges and build business resilience.
Cog solutions are centralized systems for financial institutions that are responsible for ensuring seamless workflow by automating the frontend and backend processes.
Therefore, a SACCO Core Banking System is responsible for automating all the core processes involved in the SACCO.
What are the benefits of a Sacco core banking system?
Improved employee efficiency
Most SACCOs conduct their daily activities manually, which is prone to human errors and consumes much of their valuable time.
Core banking solutions are a great introduction to this field as they help to make the banking processes efficient. This is achieved by automating multiple processes, reducing manual work, and raising employee efficiency.
SACCO Systems have helped SACCOs benefit from improved employee productivity. This has also helped some equip themselves better in offering a new range of products to their members.
Improved decision making
The introduction of automation in SACCOs has made accessing and managing data simple. With the centralized database, cooperatives can collect all the necessary data quickly. This gives them immediate access to analytics.
Core banking solutions generally have business analytics integrated into them. So, the data collected in the backend can be easily accessed and used to get valuable insights on time.
Reduced operational costs
The adoption of core banking systems has reduced the operational and support expenses of the SACCOs to a large extent. With the ability to offer services through multiple channels like internet banking and mobile banking, customers now don’t need to visit banking halls. This has enabled the banks to save big on infrastructural and operational costs.
This decreased footfall in the branches allows the SACCOs to handle many SACCO members easily. Operational effectiveness in faster transactions and loan processing has also resulted in reduced operational expenses. Also, the automation of services has enabled SACCOs to serve their members better and have a positive relationship with them.
Improved customer experience and loyalty
SACCO Core Banking Systems enables SACCOs to provide exceptional customer services. It not only allows customers to access their accounts from any interconnected branches – but it also gives the members a chance to manage their accounts any time during the day from anywhere in the world.
With easier transactions and a transparent banking experience, SACCOs can retain current members, attract new ones, and expand customer relationships beyond transactional experience.
SACCO management systems have enabled cooperatives to develop customer-centric financial products and services and move away from traditional, complex, and slow manual banking processes.
Eliminates fraudulent activities
A good core banking system comes with high-level security features and anti-money laundering features.
This saves SACCOs from losing revenues through fraudulent activities, leading to losing their members due to trust issues.
6. Helps SACCOs be more compliant
As a rule in Kenya, all the SACCOs are obligated to share some reports with SASRA, the body responsible for SACCO regulations in Kenya.
The SACCO Core Banking System will help generate the reports automatically and efficiently.
This will help reduce the workload and repetitive tasks, helping the staff spend more time offering members more convenience.