KABALE — Savings and Credit Cooperative Organisations (SACCOs) have been urged to embrace modern technology to improve efficiency, combat fraud and protect members' savings as Uganda's financial sector becomes increasingly digitised.
The call was made during the 5th Annual Western Region SACCO Convention organised by the Uganda Cooperative Savings and Credit Union Limited (UCSCU) in Kabale Municipality.
Held under the theme, "The Future-Ready SACCO: Resilient, Innovative and Member-Centric," the convention brought together SACCO leaders, financial experts and regulators to discuss how cooperative financial institutions can adapt to rapid technological changes while remaining secure and competitive.
Speaking at the event, the Chief Executive Officer of Wazalendo Savings and Credit Cooperative Society, Brig. Gen. Yusuf Magero Buha, said embracing advanced technology is no longer optional for SACCOs seeking to protect members' funds and remain relevant.
He warned that institutions relying on outdated systems face a greater risk of cyberattacks and fraud because older technologies are increasingly vulnerable.
"There is a need for SACCO leaders to understand financial intelligence because it helps in assessing members' financial histories and making informed decisions when issuing loans," Buha said.
He added that modern digital systems not only improve operational efficiency but also strengthen risk management and support better lending decisions.
Rev. Canon Dr. Duncans Mugumya, the Chairperson of Kibanga Peoples SACCO, said technology has transformed the financial sector by making banking services more accessible and improving communication with members.
He noted that electronic banking platforms and internet-based marketing have enabled SACCOs to reach more customers while enhancing service delivery.
Board Chairperson of Kyamuhunga Peoples SACCO (YAMPS), Turyamureba Paul Kahingi, said changing customer expectations, particularly among young people, require SACCOs to accelerate digital transformation.
He observed that today's younger generation expects convenient, technology-driven financial services that can be accessed remotely through digital platforms.
However, Kahingi cautioned that digital transformation also brings new risks, particularly cyber fraud and data breaches.
"Technological advancements also come with challenges such as fraud. We need to make substantial investments in security measures to protect SACCOs," he said.
Participants at the convention agreed that stronger cybersecurity systems, improved governance and continued investment in digital infrastructure are essential if SACCOs are to remain resilient and maintain public confidence.
The discussions come at a time when Uganda's cooperative financial institutions are increasingly embracing digital financial services to improve efficiency, expand financial inclusion and meet the growing demand for convenient banking solutions.
