Abstract:
Savings and Credit Cooperative Organisations (SACCOS) underpin
financial inclusion for underserved and rural communities, yet they struggle with
service-delivery inefficiencies, weak member engagement, high loan-default risk,
and opaque operations that fuel membership churn. As digital transformation sweeps
the financial sector, Internet-of-Things (IoT) technologies have emerged as a
promising catalyst for stronger SACCOS performance and sustainability. This study
evaluates the feasibility and perceived value of IoT integration in SACCOS
performance across Tanzania using a cross-sectional survey as the sole data
collection method. Structured questionnaires were administered to 131 board
members, managers, loan officers, and ordinary members across 10 SACCOS. Using
multiple linear regression, the study assessed ten digital‐transformation predictors
against overall SACCOS performance. The model demonstrated excellent fit (R =
0.990; R² = 0.980; Adjusted R² = 0.978; SE = 0.160; F(10, 120) = 578.320, p <
0.001). Statistically significant positive predictors included Perceived Organizational
Support for Digital Transformation (B = 0.701, p < 0.001), Perceived Benefits of IoT
Applications (B = 0.142, p = 0.008), Loan‐Repayment Alert System (B = 0.105, p
= 0.006), Digital Record‐Keeping Implementation (B = 0.074, p = 0.020),
Infrastructure and Technical Challenges (B = 0.082, p = 0.026), and Cybersecurity
and Data Privacy (B = 0.113, p = 0.046). In contrast, Asset‐Tracking Beacon
Deployment exhibited a negative association (B =–0.117, p = 0.010), suggesting
premature or unsupported deployments that hinder performance. These findings
imply that successful IoT integration in SACCOS requires more than procuring ICT
devices, it depends critically on robust organizational backing, clear demonstration
of practical benefits, comprehensive digital‐record processes, and strong security
measures. The study recommends that, SACCOS must secure visible commitment
from leadership on establishing ICT governance structures, allocating dedicated
digital‐transformation budgets, and setting clear performance targets to ensure
technology initiatives align with strategic goals. It is equally important to provide
hands‐on training and change‐management support for both staff and members,
ensuring that everyone adopt new IoT workflows confidently.
