What is SACCOs and why should it be digitized?
If you’re an adult living in an urban region of any corner of the world, then you’ll be well aware of the banks. Most probably you’ll have one or multiple bank accounts. Also, you might think that who doesn’t have a bank account in today’s day and age. However, that’s not the reality in many remote and rural areas of the world.
According to the World Bank, there are around 1.7 billion unbanked adults in the world. The major reason for this astounding number is lack of awareness, access, convenience, steady income, and trust. Trust is a huge factor as it keeps people unbanked even if they have access to banking facilities.
All the major factors mentioned above along with the lack of trust in mainstream banking have given birth to some innovative and novel alternatives to banking.
SACCOs is one such alternative which is doing wonders when it comes to the boosting financial inclusion in urban and rural areas of developing nations. As per the 2014 Global Census on Co-operatives, there are around 2.6 Million SACCOs in 145 countries which have over 1 Billion clients and members.
This number gives us a rough idea about the significance and the impact of SACCOs on the world. SACCOs which are sometimes also referred to as cooperatives or credit union came into existence the first time in Germany in 1846. Since then they have continued gaining popularity in Canada, the US, Europe, and mainly in the African continent.
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