KAMPALA | Former Minister for Finance and senior economist Ezra Suruma has dismissed concerns that mobile money services pose a threat to Savings and Credit Cooperative Organizations (SACCOs).
Speaking at the 9th Annual National SACCO Conference in Kampala, Dr Suruma emphasized that mobile money offers an opportunity for SACCOs to expand their reach and improve their services.
He clarified that mobile money platforms complement, rather than compete with, SACCO services by providing accessible financial solutions.
According to Suruma, individuals using mobile money may eventually turn to SACCOs for more structured services like savings accounts and loans.
Suruma also pointed out that mobile money has revolutionized the financial sector, especially in areas with limited access to traditional banking.
He urged SACCOs to leverage mobile technology to reach unbanked populations, highlighting that mobile payment integration could improve transaction efficiency and reduce costs for SACCOs.
However, Dr Suruma cautioned SACCOs against attempting to operate like banks, warning of the challenges posed by stricter regulations from the Central Bank.
In his address, Dr Suruma reiterated the ongoing need for financial inclusion, urging SACCOs to embrace innovation to contribute to poverty alleviation and economic freedom.
He emphasized the potential for collaboration between SACCOs and mobile money providers to create a stronger, more inclusive financial ecosystem.
