Do Digital or Perish: The Future of SACCOs in Malawi - By Daniel Francis Imfa, MUSCCO ICT Manager

For more than 45 years, Malawian Savings and Credit Cooperatives (SACCOs) have been a trusted provider of affordable financial services to their members. They have played a vital role in promoting financial inclusion, offering loans, savings, and other essential services to communities across the country. Yet, in today’s fast-paced digital economy, SACCOs are falling behind in the race against other financial services providers and Fin-Techs.

The Digital Divide

While some SACCOs have taken steps to modernize—adopting core banking platforms, chatbots, and mobile applications—the scale of investment remains far below that of competitors. A recent survey revealed that fewer than five percent of SACCOs in Malawi currently offer mobile banking apps. By contrast, the country’s leading commercial bank spends five times more on technology annually than the entire SACCO sector combined.

This disparity highlights the urgent need for SACCOs to rethink their digital strategies. Limited budgets, a shortage of skilled talent, and the challenge of balancing day-to-day operations with transformation initiatives have slowed progress. Most critically, SACCOs lack a unified IT strategy, resulting in fragmented efforts that fail to deliver seamless, omnichannel experiences for members.

Short-Term Solutions: Collaboration and Cost Sharing

MUSCCO believes that collaboration is the key to bridging this gap. By forming partner networks, SACCOs can mutualize costs, co-invest in new technologies, and negotiate better terms with service providers. Shared infrastructure and pooled resources would not only reduce expenses but also create economies of scale, enabling SACCOs to deliver improved digital services more quickly and efficiently.

Long-Term Vision: Becoming Experience Orchestrators

Beyond cost-sharing, SACCOs must embrace a bold new role as experience orchestrators. This means integrating their financial services with third-party offerings to create richer, lifestyle-driven experiences for members. Imagine a SACCO partnering with a local car dealership to provide tailored financing options, or leveraging analytics to recommend personalized products. Such innovations would position SACCOs as trusted aggregators of value, deepening member loyalty and relevance in the digital age.

The Road Ahead

The message is clear: SACCOs must modernize or risk obsolescence. Digital transformation is no longer optional—it is the foundation for survival and growth. By embracing collaboration in the short term and evolving into experience orchestrators in the long term, SACCOs can not only remain competitive but also thrive in Malawi’s rapidly changing financial services landscape.

The future of SACCOs depends on their ability to deliver digital experiences that resonate with members. Those that act decisively will secure their place in the financial ecosystem. Those that hesitate risk being left behind.

It’s the digital evolution in financial service provision industry. The time is now, and every minute you wait is another opportunity for your competitors to make the move that you’re thinking about and start stealing your market share. Do digital—or perish.