finance 25 June 2026 Nile Post
Uganda SACCOs Must Modernize to Combat Fraud and Embrace Digital Future
Financial leaders are urging Ugandan Savings and Credit Cooperative Organisations (SACCOs) to upgrade their technological systems and enhance cybersecurity. This modernization is seen as crucial for protecting member savings from fraud and meeting the growing demand for digital financial services. Source: https://nilepost.co.ug/news/351363/saccos-urged-to-modernise-systems-to-fight-fraud-and-meet-growing-digital-demand
Savings and Credit Cooperative Organisations (SACCOs) in Uganda are facing increasing pressure to adopt modern technology. Experts warn that outdated systems not only leave members’ savings vulnerable to fraud and cybercrime but also hinder the institutions’ ability to serve an increasingly digital customer base.
The urgency for modernization was a key theme at the 5th Annual Western Region SACCO Convention in Kabale, organized by the Uganda Cooperative Savings and Credit Union Limited (UCSCU). Under the theme, “The Future-Ready SACCO: Resilient, Innovative and Member-Centric,” attendees discussed strategies for adapting to rapid technological changes.
Brig. Gen. Yusuf Magero Buha, CEO of Wazalendo Sacco, emphasized that embracing advanced technology is no longer a choice but a necessity for protecting funds and maintaining relevance. He highlighted that older technologies are more susceptible to cyberattacks, making robust cybersecurity measures imperative.
Buha also stressed the importance of financial intelligence in assessing members’ financial histories for informed loan decisions. Modern digital systems, he noted, enhance operational efficiency, strengthen risk management, and improve the accuracy of lending.
Rev. Canon Dr. Duncans Mugumya, Chairperson of Kibanga Peoples SACCO, pointed out how technology has already made banking services more accessible and improved member communication through electronic platforms and digital marketing. Turyamureba Paul Kahingi, Board Chairperson of Kyamuhunga Peoples SACCO, added that the expectations of younger generations, who demand convenient, remote digital financial services, necessitate accelerated digital transformation.
However, participants cautioned that digital transformation also introduces new risks, like cyber fraud and data breaches. Substantial investments in security are therefore essential to protect SACCOs and maintain public confidence.
Discussions concluded that improved governance, continued investment in digital infrastructure, and robust cybersecurity systems are vital for SACCOs to remain resilient and competitive in Uganda’s evolving financial landscape.
Source: Nile Post