🏦 SACCOs, A Story of Tradition, Trust, and Tech Adoption

In an era where smartphones are practically extensions of our hands and QR codes have replaced handshakes, one might expect financial services to have gone fully digital. But not so fast. SACCOs (Savings and Credit Cooperative Organizations) are telling a different story — one with ink-stained passbooks and queues at the branch counter.

While financial institutions scramble to build the next viral banking app, nearly 60% of SACCO members still prefer the tried-and-tested charm of the physical branch, as revealed in the 2024 Finaccess Household Survey. And it’s not just nostalgia — it’s necessity, trust, and perhaps a tinge of digital skepticism.

📊 Let’s dig deeper into the numbers…

Branch-based services dominate, overshadowing all digital options combined. Sacco Apps (26%), USSD (24%), and Paybill (20%) trail far behind — a stark reality for digital evangelists.

🌍 Rural Roots, Stronger Branches

Out in the countryside, SACCOs continue to be a financial sanctuary. A staggering 66.7% of rural members prefer branch access, compared to 52.0% in urban areas. For many, these branches are more than service points — they’re community hubs.

This geographic divide isn’t just a tech issue. It’s about trust, infrastructure, and digital literacy. And until a USSD code can offer you a cup of chai while explaining loan terms, branches will likely remain in business.

📱Urban Jungle vs Rural Rhythms

Urban users are slowly loosening the grip on paper slips. Paybill services see a 28.5% usage rate in urban areas, double that of rural areas (14.3%). And interestingly, female users lead in Paybill adoption, perhaps drawn by its accessibility and ease.

Yet, for more interactive digital channels like apps and USSD, urban users again take the lead (56.8%) over rural users (44.1%). Gender gaps persist too: male members dominate mobile-based usage (51.6%) compared to 47.8% for females — a subtle yet telling reminder of the tech barriers that still exist.

🚧 Why Some Just Walk Away

Not everyone stays loyal. Of those who leave SACCOs behind:

1. 51.7% do so voluntarily — maybe for greener financial pastures.

2. 46.2% couldn’t keep up with account requirements — a financial reality check.

Urbanites, with more choices, are more likely to exit by choice. For rural members, it may not be a matter of choice but of circumstance.

💡 The Road Ahead

To bridge this digital divide, SACCOs must go beyond just building apps — they need to build confidence. That means:

1. Simplifying interfaces, especially for older and female members.

2. Offering hands-on training in rural areas.

3. Retaining branch-based services as trusted anchors while nudging users online.

   
   

Until then, expect more members to tap their wallets instead of their screens. The digital revolution may be underway — but in SACCO land, it’s politely waiting its turn in line.