NCBA recently hosted its Sacco Banking Division customers in a forum aimed at guiding them to strengthen their defenses against the escalating wave of cyber-attacks.
The engagement, held at the Serena Hotel in Nairobi, brought together key stakeholders to address the critical challenges facing Saccos in the digital age.
Innovative Sacco Banking Solutions
The Group’s suite of innovative Sacco Banking solutions includes Virtual Accounts for Diaspora Remittances, Check-Off Automation, Open Banking, and Automated Direct Debits.
These solutions are designed to enhance operational efficiency, strengthen cyber defenses, and improve service delivery for SACCOs.
Speaking at the event, NCBA Group Managing Director, John Gachora, emphasized the importance of collaboration between the private sector, SACCOs, and the Government in driving Kenya’s economic transformation.
“The collaboration between the private sector, SACCOs, and the Government is crucial in driving Kenya’s economic transformation. SACCOs are pivotal to Kenya’s economy, controlling over 30% of national savings and contributing over 40% of the country’s GDP. We commend the Government’s ongoing support in creating a conducive regulatory environment. At NCBA, we’re committed to providing innovative solutions and enhancing cybersecurity measures, having invested $31 million last year to fortify our cybersecurity infrastructure,” he stated.
Challenges Facing the Sacco Sector
The event highlighted several pressing concerns within the sector, notably the high costs associated with acquiring and maintaining Information and Communication Technology (ICT) infrastructure and the ever-evolving nature of cyber threats.
These factors have emerged as significant barriers to the implementation of effective cyber-security strategies within Saccos. Moreover, the limited human resource capacity to address emerging threats in real-time was identified as a core issue preventing Saccos from staying ahead of cybercriminals.
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The lack of specialized personnel to manage and mitigate risks underscores the urgent need for Saccos to invest in technological advancements and upskill their workforce.
Government Support for Sacco Development
Wycliffe Oparanya, Cabinet Secretary for Co-operatives and MSMEs Development, underscored the pivotal role SACCOs play in Kenya’s economic landscape during the NCBA SACCO Banking Forum.
He stated, “SACCOs play a pivotal role in Kenya’s economic landscape. Enhanced collaboration between the government and private sector is essential to strengthen SACCOs’ resilience. We applaud NCBA for its leadership in cybersecurity innovation. The government remains committed to fostering a supportive environment for SACCOs through digital transformation initiatives and policy reforms to drive sustainable growth and financial inclusion.”
Competitive Landscape and Technological Adoption
The discussion also touched on the broader competitive landscape, with an overview that leveraging technology is not just essential but a prerequisite for Saccos to remain relevant and competitive.
In an environment where financial institutions are rapidly adopting innovative technologies, Saccos must not only secure their operations but also enhance their service delivery to keep pace with industry peers.
