Masila Makau

Why is AI needed by saccos?

It is no longer feasible for saccos to postpone implementing AI.  However it raises the question "Why is AI needed by saccos?". As technology moves forward, it compels them to give more value to their clients. Using AI provides a client-centered approach to use data to add this value. Some of the benefits of using AI in saccos include: 

Beating bias                                   

When giving loans, human beings are very prone to both conscious and unconscious bias. People in marginalized groups have historically been prejudiced against when it comes to accessing financial resources. Having AI models allows us to understand existent biases and mitigate them.

Leveraging machine learning 

Sacco’s can leverage machine learning when building models which will result in having a healthier credit portfolio. Machine learning can help us to build algorithms which will clearly map out good borrowers from bad borrowers. This will result in sacco’s being able to make more informed decisions in who to give out loans to which is based on their repayment history and other personal information.

Behavioural analytics                 

Implementing AI in a savings group will allow them to use the information collected for the client’s savings and investment trends. For example, realizing clients keep money for shorter periods of time would allow the sacco to provide products that suit their clients’ behavior. Saccos can continue to collect data to analyze the seasonal financial behaviors of their clients hence enabling them to provide better packages and resources for them at the right time.