Research
Digital Financial Services
Digital Transformation
Digitization Benefits
Digitization Risks & Barriers
Evidence & Impact
Project Implementation
Technology Solutions
User Experience
Digitization of SACCOs in Uganda: Drivers and Impact Study
Published by
David Nanambi Wayiku & Prisca Adong
2023
Asigma & Mercy Corps
- This impact and learnings report presents outcomes of the collaboration between Mercy Corps and Ensibuuko, which partnered in 2013 to develop and market Ensibuuko Mobile Banking and Information System (MOBIS) to SACCOs. One of the first users of this system was Rukiga SACCO Ltd in Uganda. The study presents the impact that digitization has had on Rukiga SACCO. Two other SACCOs are used as case studies as well. Savings and Credit Cooperative Societies (SACCOs) and Village Savings and Loan Associations (VSLAs) are common in Uganda, but many do not have digital Management Information Systems in place and therefore suffer from a lack of oversight, high operating costs, and a risk of fraud.
- Digitization can provide many benefits, including increased transparency, accountability, improved reporting, increased productivity, and operational efficiency. It can also make it more convenient for members to receive services due to mobile applications.
- To provide a benefit to SACCOs and VSLAs, digitization needs to be accessible and sustainable. High transaction costs and user fees create burdens to SACCOs and VSLAs that make digitization less accessible long term.
- Micro-lending is a promising emerging trend which supports many customers who are typically unable to pay for digital solutions. The belief is that lending empowers members of SACCOs and VSLAs to participate in income generating activities which increases their savings/loans participation which helps the organizations pay for digitization services.
Have you found this Resource useful?
View all comments
Latest Newsletters
Related Resources
Read
Brief
Evidence Review of Women’s Groups and COVID-19: Impacts, Challenges, and Policy Implications for Savings Groups in Africa
By Eve Namisango et al.
Evidence Consortium on Women’s Groups (ECWG)
2021
Evidence Review of Women’s Groups and COVID-19: Impacts, Challenges, and Policy Implications for Savings Groups in Africa
This learning brief examines the effects of the COVID-19 pandemic on women’s savings groups in diverse African contexts and explores how the shift to digitization impacted these groups and their members. Conclusions indicate that women’s savings groups contributed to resilience to economic challenges associated with the pandemic. For example, households with a female member in […]
Read
Research
Research
Digital Savings Groups: Evidence from Tanzania
By Julia Arnold
Project Concern International (PCI), International Center for Research on Women (ICRW), DreamStart Labs
2020
Digital Savings Groups: Evidence from Tanzania
This report provides some of the first insights into how savings groups can successfully transition from paper to digital ledgers and examines some key hypotheses about digitizing savings groups. Specifically, the report presents findings from an evaluation of a pilot test of DreamSave—a digital savings ledger—conducted by Project Concern International (PCI)—A Global Communities Partner, DreamStart […]
