<p style="text-align: justify;">In today’s fast-changing landscape of finance and community development, SACCOs across Malawi stand at a defining crossroads. The pressing need to remain relevant in an era dominated by digital innovation, shifting member expectations, and increased competition keeps on taking centre stage in all SACCO leaders gathering. Mr. Francis Waliwa general Manager of the United Civil Servants SACCO has shed more light on what tomorrow's survival means for SACCOs. </p>
<p style="text-align: justify;">Note:
  <strong>DD</strong> refers Daniel Imfa and <strong>FW</strong> refers to Mr. Francis Waliwa </p>
<p style="text-align: justify;"><strong>DI: </strong>How do you personally define innovation in the context of SACCO business?</p>
<p style="text-align: justify;"><strong>FW:</strong> Innovation isn’t just about technology—it’s about transformation. I’d define it as: “The intentional introduction of new ideas, processes, or tools that improve member value, operational efficiency, governance transparency, and long-term sustainability.” </p>
<p style="text-align: justify;">Innovation, in this sense, is not a luxury—it’s a strategic necessity. It helps SACCOs stay relevant, resilient, and responsive in a rapidly changing financial landscape.</p>
<p style="text-align: justify;"><strong>DI:</strong> Do you believe SACCOs are naturally innovative—or do they need a mindset shift to embrace it?</p>
<p style="text-align: justify;"><strong>FW:</strong> SACCOs have the potential to be innovative, but they’re not always naturally inclined toward it. Their DNA is rooted in trust, tradition, and member-driven values—which are strengths—but these can sometimes lead to risk aversion and resistance to change.</p>
<p style="text-align: justify;"><strong>DI:</strong> How can SACCOs effectively evolve from reactive compliance to proactive innovation.</p>
<p style="text-align: justify;"><strong>FW:</strong> In a world where disruption is the new normal, survival is no longer guaranteed by legacy, size, or even profitability. The SACCOs that will thrive tomorrow are those that are embracing the three non-negotiable pillars today: strategy, technology, and youth inclusion, SACCOs should start recognizing the Trap of Reactive Compliance what I mean is a leader needs to keep an eye on the following symptoms in his/her institution: Waiting for audits, reacting to regulatory changes, minimal member engagement which carries: Stagnation, member attrition, vulnerability to fintech disruption risks - These are bad omens and needs to be uprooted as road blocks immediately. Any SACCO leader should always remember that “Compliance keeps one legal but Innovation keeps one alive.” As SACCOs we need to embed Innovation into Strategic Planning, Shifting from the usual static 3-5-year plans to dynamic strategy cycles with quarterly innovation reviews, include KPI’s for digital adoption, youth engagement, and member&nbsp;<strong>satisfaction</strong> - not just financial ratios again leveraging on Data for Predictive Decision-Making is now key, the financial land scape is demanding us leaders to move beyond basic reporting to data analytics that forecast member needs, credit risk, and service gaps. Ignore strategic partnerships with Fintechs at your own peril, SACCOs should collaborate more with mobile money platforms, digital ID providers, and financial literacy apps who can help in co-creating solutions like digital on-boarding, AI-powered loan scoring, and chat-bot support and lastly by making youth inclusion a design principle - don’t just invite youth —design with them. Include them in product testing, feedback loops, and governance " As leaders we should remember that youth are not just users—they’re co-creators of the SACCOs future.</p>
<p style="text-align: justify;"><strong>DI:</strong> How can SACCOs align strategy, tech, and youth inclusion properly without losing legacy members?</p>
<p style="text-align: justify;"><strong>FW:</strong> This is where a good leader must have foresight, much like a giraffe, which can see far into the distance. You will agree with me that while legacy members often represent the backbone of trust and stability, but the youth and tech are bow represent the future. SACCOs strategies must now connect emotionally, culturally, and digitally with members’ aspirations.
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<p style="text-align: justify;">For SACCOs, this means aligning governance with member journeys—embedding financial literacy, community-rooted innovation, and inclusive decision-making into the strategic DNA. </p>
<p style="text-align: justify;">Malawi’s youth population is surging, with over 70% under the age of 30. Yet many financial institutions still design products for yesterday’s member. Youth inclusion isn’t just about outreach—it’s about co-creation.</p>
<p style="text-align: justify;"><strong>DI: </strong>Why digital platforms are now the backbone of member engagement in SACCOs?</p>
<p style="text-align: justify;"><strong>FW:</strong> I believe digital transformation is no longer a luxury—it’s the engine of trust, speed, and scale. From core banking upgrades to mobile on-boarding and e-statements, technology must be embedded across the member lifecycle. But tech alone isn’t enough—it must be paired with data governance, cybersecurity, and member education.</p>
<p style="text-align: justify;">Initiatives like Generation17 and the UN Youth Strategy show how young leaders are using technology to drive social change and financial inclusion. SACCOs must tap into this energy—by recruiting youth to boards, designing youth-led savings products, and integrating digital literacy into outreach programs</p>
<p style="text-align: justify;"><b>DI:</b> What’s one innovation you believe every SACCO should adopt in the next 12 months?</p>
<p style="text-align: justify;"><b>FW:</b> If I had to champion just one innovation for SACCOs in the next 12 months, it would be: Mobile-first member on-boarding and loan servicing—fully integrated with e-KYC, automated scoring, and local language support.
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<p style="text-align: justify;"><b>DI:</b> Why Mobile-First On-boarding Is a Game-Changer?</p>
<p style="text-align: justify;"><b>FW:</b> Accessibility: Most SACCO members already use mobile phones. Bringing on-boarding, savings, and loan applications to their fingertips removes barriers—especially for youth and rural communities.</p>
<p style="text-align: justify;">Speed &amp; Efficiency: Digital on-boarding with e-KYC (electronic Know Your Customer) reduces paperwork, queues, and manual errors.</p>
<p style="text-align: justify;">Trust &amp; Transparency: Members can track loan status, repayment schedules, and savings growth in real time—building confidence in SACCO governance.</p>
<p style="text-align: justify;">Inclusivity: Local language interfaces (like Chichewa) ensure that even low-literacy members can engage meaningfully.</p>
<p style="text-align: justify;">DI: In your opinion what are the five (5) Questions Every SACCO CEO Should Be Asking Today off course not in any order of importance</p>
<p style="text-align: justify;"><strong>FW:</strong> mmmmmmh that's a difficult one Daniel, anyway I would like to leave my readers and the audience with the following critical questions:
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<ol>
  <li style="text-align: justify;">Is Our Strategy Future-Proof or Just Regulatory-Compliant? - Are we merely ticking boxes for compliance, or are we actively shaping a vision that attracts younger, digital-first members. Does our strategic plan include innovation, member emotional engagement, and resilience against fintech competition?
  </li>
  <li style="text-align: justify;">Is Our Technology an Enabler or a Bottleneck? - Are our systems mobile-friendly, secure, and integrated with member needs? - Can we onboard new members digitally, issue e-statements, and automate loan processing?</li>
  <li style="text-align: justify;">Are We Truly Including Youth—Or Just Talking About It? - Do we have youth representation on our board or supervisory committees? Are we co-creating financial literacy tools, savings products, or digital campaigns with youth voices?</li>
  <li style="text-align: justify;">Do We Know What Our Real Priorities Are? - Are we focused on what matters most—member trust, liquidity, and long-term sustainability—or distracted by short-term fixes? Are our KPIs aligned with member impact, not just internal metrics?</li>
  <li style="text-align: justify;">Where Are Our Hidden Roadblocks? - What’s quietly undermining our growth—manual processes, poor data, weak governance, or lack of feedback loops? Are we listening to front line staff, auditors, and members to identify friction points?</li>
</ol>
<p style="text-align: justify;"><b>DI:</b> Thank you Francis for your time any last words to your fellow Managers</p>
<p style="text-align: justify;"><b>FW:</b> In conclusion let me say this to my fellow SACCO Managers “Great leaders aren’t just visionaries—they’re roadblock removers” and the truth pains but it’s a reality “If SACCOs don’t evolve, SACCOs will dissolve. Our members deserve more than tradition — they deserve transformation.” Let’s contribute in making Future-Proofing SACCOs by having better strategies, being innovative and including the youth in the design and testing of our financial products.</p>
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