The process of procuring a SACCO Management System is not easy. This becomes more difficult for a SACCO that is fairly small, new or doesn’t have a dedicated ICT department. You will find that most SACCOs in Kenya are managed by elderly people. In most cases (I say this with much respect) some might not understand the technicalities involved in choosing the right SACCO Management System. I have seen SACCOs that procure a system, only to start the process a fresh after 2 years of immense suffering. This happens mostly because the system didn’t meet expectations of the SACCO. This guide tries to show you how to choose a SACCO management system and key points to note.
In Summery:
- Consider your SACCO’s needs.
- Consider your budget.
- Involve IT specialists.
- Avoid in-house systems.
- Listen to other client’s reviews.
- Sign a contract.
Point 1: Consider Your SACCO’s Needs
As a SACCO look at the reasons why you may need a management system. Looks at your needs and unique requirements. If you already have a system in place and you need to change to a different system, note down the shortcomings in your current system (the features you need but the current platform doesn’t offer).
If this is the very first time you are purchasing a management system, try to keep in the following points.
- Has paperwork become cumbersome?
- Are you having difficulties generating timely statements and reports?
- Do you have problems with accuracy of your data and reporting?
- Does your SACCO have members from abroad?
- Do you want SACCO members to access the system remotely e.g via the web, USSD, Mobile Applications e.t.c ?
- Are you having issues consolidating contributions and payments from different channels e.g mobile money, bank deposits etc?
- Do you have problems reconciling your books?
- Do you want to increase interaction with members and bring services closer to them via agency banking, online baking etc?
This type of questions will help you know what to type of system to look for.
Point 2. Consider Your Budget
In most cases your budget will most certainly determine the type/robustness of the system you acquire. Some vendors will charge a one-off acquisition fee, others will put you on a subscription, others will charge best on the size of the SACCO (e.g number of users, branches e.t.c). All this factors can help you plan well. My advice would be this: – If your budget is not quite large, you should go with a subscription model, this model allows you to enjoy system features at a smaller monthly/annual fee.
Point 3. Involve ICT Specialists.
Do not go hunting for a management system without the guide of IT specialists. If your SACCO does not have a dedicated ICT department, you could always hire consultancy services. Get people with experience working with not only financial/banking management systems but also other management systems. Their guide will help you avoid common mistakes I have seen institutions make. Have this people on your procurement team. Let them help run orientations.
Point 4. Avoid In-house Systems.
From my experience, in-house systems don’t just seem to take off. Organizations spend years if not months working on their systems only for the project never to take-off. This process is time-consuming and in most cases you find yourself out of your budget. My advice would be;- get a ready-made system, work with the vendor to customize it to suit your needs and solve your problems better.
Point 5. Listen To Other Clients’ Reviews
Who need to choose a SACCO management system that anyone does not recommend? Once you have identified the suppliers, it is time to get to know some of their clients. Find out what their experiences are with those systems. Ask questions such as system stability, customer support, vendor reliability e.t.c. Don’t just look for the negative reviews but also for the positive ones. A genuine review will not only help you know what your intended supplier is but also the system’s strengths and weaknesses.
Point 6. Sign A Contract
Always sign a contract with your system vendor. Your data is very precious. A contract will not only be beneficial to you, but also to your system vendor. It will protect both parties. You do surely don’t want your trading secrets leaked.
I believe this information will help you make informed decisions when choosing a SACCO management system. If you’re just starting as a SACCO I encourage you to learn about the benefits of a SACCO management system.
Have I left out important point? Please add it in the comments section.
PS: If you’re not using Fibo360 SACCO Management system, you’re missing out on a lot. Signup here or learn about it’s features here