In this dynamic landscape of finance, traditional lending solutions offered by savings and credit cooperatives are undergoing a transformation. This transformation is driven by the need to serve members better and boost financial inclusion.
At Wakandi, we are at the forefront of this transformation. We offer a digital financial system that brings relevant technology to digitize the entire lending process for cooperatives.
SACCO lending in Uganda
Savings and credit cooperatives have been serving as the financial arm for societies in Uganda. They provide financial services to reduce poverty and support socio-economic transformation in Uganda.
More than 21000 cooperatives (source), including SACCOs and credit unions, have been serving the people of Uganda with affordable credit solutions. Some popular types of loans offered by SACCOs as per National Information Technology Authority Uganda:
Emergency loans – Loans offered to support the member or their family in case of any emergency.
Business loans – Credit facility offered to support new business ventures or expansion.
School fees loans – Loans offered to support education for member’s kids and other family members.
Salary loans – Loans offered to salaried employees to help them achieve their financial goals.
The impact of credit services offered by SACCOs has been substantial. However, many cooperatives suffer from high operating costs, time-consuming calculations, a lack of oversight, and a risk of fraud.
Digitization can help SACCOs in Uganda bring transparency and accountability to their services and day-to-day operations. It can boost the productivity and operational efficiency of the administrators.
How does Wakandi digitise SACCO lending?
Wakandi offers a digital financial system that allows savings and credit cooperatives to create and provide loans to members. The system also takes care of interest calculations and loan repayments by members. Let’s explore various features that Wakandi offers to digitize SACCO lending in Uganda.
Credit Product Policy
Credit Product Policy (CPP) is a great feature of Wakandi that allows SACCO admins to create different loan offerings/products that members can choose from. With CPP, they can make a business, personal, or educational loan, set interest rates, assign amount and duration limits, and other important loan details. Once the loan details are filled in and saved, members can choose this loan product and apply easily through mobile phones.
Loan applications
Loan applications, as the name suggests, provide a bird’s eye view of all the new, pending, and active loan applications of the SACCO. Admins can view any new loan application submitted by the member and check details of it like the amount of the loan, tenure, and applicant information.
Loan approval process
Admins can set the loan approval process in the Wakandi app. The entire decision-making process can be customized to suit the size and needs of the SACCO. They can choose if only the loan officer should approve the application or if it should be scrutinized by the loan officer, admin, and management. In case of a long approval process, the application will automatically move through each step once approved.
Loan reports
In the report section of Wakandi, SACCOs can get a detailed report on loans, including active, unpaid, and repaid loans. Admin will be able to see which loans have been partially and completely repaid. They can check if the loans have been repaid on time or whether any charges have been applied. The reports can also be downloaded for offline usage.
Disbursement and repayment
The Wakandi app also supports payment through bank accounts, mobile money wallets, and cash. This makes loan disbursement super easy as admins can easily send out the money after the application is approved. Similarly, borrowers can repay the loan in instalments through their mobile phone. They can also check their balance, due amount, installation date and more.
Leap with Wakandi
SACCOs will continue to play a crucial role in promoting financial inclusion and empowering local economies. Embracing innovative digital systems for them is now more important than ever to sustain growth.
Learn more about the Wakandi app and see for yourself how it can help cooperatives adopt digitization. Our team is also available to offer a demo. Click on the button below to reach out and book a free demo today.
