Moses Walakira, SACCOnet Project Manager at Uganda Central Cooperative Financial Services Ltd (UCCFS), sheds light on the transformative role of digitization and mobile banking in SACCOs.
He explains that SACCOs offer a unique opportunity for insurers by utilizing digital platforms and mobile banking. He adds that through partnerships with financial service providers, UCCFS helps SACCOs expand their offerings with tailored credit and savings solutions. In rural areas, SACCOs provide access to life insurance, covering risks like death and disability, but face challenges recovering loans when members pass away.
To solve this, UCCFS partnered with Fintech to integrate insurance into credit services, allowing members to access credit while paying insurance premiums. This approach enhances financial inclusion, reduces credit risk, and boosts insurance penetration through digital solutions.
Moses stresses the potential for SACCOs and insurers to leverage technology for greater reach, customize financial products, and fostering of partnerships.
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