Technology is evolving at a breakneck pace. Each new day brings new trends in technology, making it increasingly difficult for brands to catch up. It is like a bullet train that has long left the station, with those not onboard risking being left out forever.
The financial sector is one of the sectors in Kenya that has been significantly disrupted by ever-changing technology.
Kenya’s financial system has undergone drastic transformations that have seen the country being among the best in technological enhancements.
Kenya has been a leader in financial inclusion for over 13 years, thanks to the advancement in technology by mobile banking platforms such as banking apps and savings apps for Saccos and M-PESA.
The discussion within the financial sector in Kenya can only be complete with the mention of Saccos. Saccos have been instrumental in tailoring Kenyans towards embracing both the savings and investments culture more than what traditional commercial banks would do.
One such Sacco is Stima DT Sacco. Stima Sacco, as it is popularly known, is among the few investment vehicles in Kenya that have fully embraced technology to make the transactions and relationships between them and their customers smooth and seamless.
Through their mobile and web platforms, Stima Sacco customers can withdraw, deposit, and borrow cash through their MPawa App, view statements and check balances, and onboard on their new-improved web portal.
In the past few days, Stima Sacco has been undergoing a system transition that caused the interruption of some of its banking services.
The Sacco issued a statement saying it was transitioning from Electronic Resource Planning (ERP) which has been in use for years, to a new core banking system expected to expand services available to customers using alternative digital channels.
The new core banking system being onboarded by the giant Sacco is set to improve efficiency and uptime, as the old ERP was prone to downtime and transaction delays. With the new system, customers will now be able to transact in real-time with no collapsing of services like before.
It is safe to say that the system will ease the anticipated future access to the national payment system, which will help with faster processing and clearance of cheques and bank transfers.
The Sacco is optimizing the delivery of services where members can efficiently check balances, withdraw to mobile money accounts and conduct the internal transfer of funds to deposit and share capital accounts using its Mobile USSD code.
Moreover, members will now be able to carry out Electronic Funds Transfers (EFT), Real Time Gross Settlement (RTGS), and direct deposits.
The new system is also expected to help members access funds using all Visa-branded ATMs and pay at the Point of Sale. This will put it ahead of peers within the same operating sphere.
Other services being deployed using the new system include salary processing, direct debits, and cash deposits.
If all these services will be in place upon completion of the transition, there is no doubt that Stima Sacco would have catapulted its services to the next level.
As is the norm, in transitioning from a new tech system to a typically another new system, services get to be disrupted. These concerns gripped Stima Sacco customers, and they are justified because it is their investment.
Sacco has assured its members of their deposits and investment security to address these concerns. The management has said that Sacco is well capitalised, having grown to over 53.7 billion shillings in its asset base by the close of 2022.
The Sacco anticipates the new core-banking system shall usher in new mobile products and services post the transition period.
With the ever-changing technology, Kenyans should expect more changes and disruptions within and without the financial sector. Such disruptions are significant because the world of cybercrime has become so sophisticated.
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