The SACCOS are important institutions for providing financial services to marginalized communities and must be harnessed to help alleviate poverty in Tanzania and Africa in general. There is a need to build the internal capacity to meet the challenges that constrains their development. Unfavorable government policies, weak governance and management systems must be addressed. They should cooperate with the government and other development partners for better policy and legislature environment. Furthermore, in order to succeed to succeed in the new era of globalization (liberalized), the Savings and Credit Co-operative Societies (SACCOS) in different communities need to be people centered, be owned and controlled by members, should have a good leadership and management accountable to its stakeholders, and should be sensitive and responsive to the needs of its stakeholders and to changes in its internal and external environment.
Far from the development of the Microfinance policies is Tanzania there has been flexibility that enable timely operations of the microfinance institutions in accordance to the law governing time to time so as to ensure the effective operations of these institutions. The main objective of the National Microfinance Policy of 2001 is to establish a basis for evolution of an efficient and effective micro-financial system in the country that serves the low-income segment of the society and thereby contributes to the economic growth and improve people’s well being
Technological services are services designed to facilitate the use the use of technology by enterprises, institutions and users. Technology services provide specialized technology oriented solutions by combining the processes and function of software, hardware, networks, telecommunication and electronics.
Lately technology has been a fastest and easy way and solution to tackle the problems of its users. Moreover it cuts across many places and so to touch people who do not use it as well. This all prescribes the importance of technology is bringing closer solutions to our problems.
In most cases many SACCOs in Tanzania, regardless of the good objective they have, they fail to deliver adequate socio-economic benefits to members as a result that members expected when established the SACCOs are not achieved. This is caused by various internal and external factors affecting the area of microfinance operations or performances. As time goes these factors/challenges may cause many SACCOs to become dormant or may even collapse totally and for some other may keep on operations but fail to deliver services effectively to its members and the community at large. They cause SACCOs to provide service to its members and lead to poor member’s participation as far as commitment is concerned, loss of members’ funds, failure to overcome competition, endless of internal conflicts and even the loss of SACCOS autonomy and independence just a few to mention. These problems in precise are;