The National Cooperative Credit Union Association of Sierra Leone (NaCCUA), in partnership with Deutsche Sparkassenstiftung für Internationale Kooperation (DSIK), has initiated a pilot program to introduce the NaCCUGSoft (Credit Union Core Banking System) to two credit unions, Tawopaneh Traders Cooperative CU and Moyamba District Teachers Cooperative CU.
The staff of the selected credit unions (Tawopaneh CU and Moyamba Teachers CU) and NACCUA have undergone intensive training, which lasted from 11th-22nd November 2024.
The pilot phase is part of an effort in boosting and strengthen South – South exchanges between credit unions in the Western Bloc. The pilot phase aims to upgrade credit unions from manual operations to a core banking system, enhancing efficiency, accuracy, and quality service for members.
NaCCUA was established in 2013 as the Apex Body of all Credit Unions in Sierra Leone. At present, there are 25 credit unions affiliated to NaCCUA with 18, 698 000 membership. NaCCUA supports and advocates on behalf of CU for a better regulatory environment.
Peter Alex Banting, General Manger- NaCCUA, noted that as a movement, they observed that the manual system poses risk and various challenge,s and they are addressing such through Core Banking system to help generate reports. “Over the years, the manual system poses various challenges, and as a result, these credit unions have undergone significant losses due to the use of manual system. For instance, when audits are done, you have suspense and errors amounting to thousands of Leones which reduces the efficacy of these CU. So, by providing them with this core banking system through our partner DSIK, it will help the movement transform and serve their members better.”
Baboucarr Jeng, the DSIK representative in Sierra Leone, stated that the NaCCUGSOFT is part of their activities in strengthening Apex body. “As part of our activities in the region, we aim to strengthen Credit Unions apexes in Western Africa, and encourage changes among them. So, deploying NaCCUGSOFT (a Credit Union Core Banking System owned by NACCUG) in Sierra Leone, is one of those exchanges.’’
The software pilot is supported by the Gambia’s credit union apex body, National Association of Cooperative Credit Unions of the Gambia (NACCUG), which brings extensive expertise in core banking solutions tailored for credit unions. With this digital transformation, credit unions in Sierra Leone are set to streamline operations, improve transaction accuracy, and offer their members a more seamless banking experience.
Alagie Kuyateh, IT Director- NaCCUG, noted that the NACCUG Soft first phase process involve data migration, network connection and intensive training on loan, savings and shares management. “First, we had to do data Migration for the two CU and the Central Finance Facility (CFE) for NaCCUA. Before implementation, we ensure that there is a network connection so that two or three computers can connect to the server at the same time. For example, if you go to Tawopaneh, there are four users and all these users are linked to the server, similarly for Moyamba CU as well.”
According to Kuyateh, the NACCUGSoft could solve challenges like interest calculation, authentic guarantors of the CU for loan purpose, including related transaction activities.
“In the aspect of interest calculation, the manual used flat rat,e whereas the NACCUGSoft system is using the reducing balance method. I believe the reducing balance method is good for the members and equally for the CU because members would only pay the interest that is due. They don’t need to pay the whole interest even though they paid very early. So, reducing balance method are some of the challenges it will solve,” Kuyateh explained.
As NaCCUA continues to advance credit union capabilities, this core banking rollout marks a critical step in strengthening financial inclusion and resilience for Sierra Leonean credit unions as NaCCUA hopes to do a full rollout once the pilot is successful. Transforming Credit Unions in Sierra Leone from Manual to Core Banking system.
