International Journal of Finance

ISSSN 2520-0852 (Online)

Vol.5, Issue No.1, pp 14 – 31, 2020 [Link]

THE CHALLENGES OF SAVINGS ON CREDIT UNIONS

IN CREATING WEALTH: A CASE STUDY OF ZAMBIA
ARMY SAVINGS AND CREDIT UNION
Mwila Ian and Engr. Dr Kasongo Mwale Richard

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International Journal of Finance
ISSSN 2520-0852 (Online)
Vol.5, Issue No.1, pp 14 – 31, 2020 [Link]

THE CHALLENGES OF SAVINGS ON CREDIT UNIONS

IN CREATING WEALTH: A CASE STUDY OF ZAMBIA
ARMY SAVINGS AND CREDIT UNION
1*
Mwila Ian
Post Graduate Student: Graduate School of Business
University of Zambia
*Corresponding Author’s E-mail: mwilaian@[Link]

2
Engr. Dr Kasongo Mwale Richard
Lecturer, Graduate School of Business
University of Zambia

Abstract
Purpose: The aim of this study was to identify the challenges of savings on Zambia Army
Savings and Credit Unions in creating wealth and recommend possible solutions.
Methodology: The study used mixed research methods to collect qualitative and
quantitative data, as both could not give the satisfactory results due to weaknesses in each
method. Eighty (80) respondents were sampled of which seventy were sampled from
members of ZASCU in survey questionnaire and the other ten (10) were for in-depth
interview from management. Top management of six (6) respondents and four (4)
respondents from operation level were purposively sampled for expert sampling and
in-depth interviews were used as a data collection technique. The other respondents were
randomly sampled selected using probabilistic sampling, where every individual had an
equal chance of being selected. Quantitative data was analyzed using SPSS version 21
and qualitative data was analyzed using thematic content analysis and document review.
The research study’s results collected through the questionnaire, in-depth interviews and
document review showed that ZASCU had challenges of savings in creating wealth.
Findings: The results showed the following challenges: 26% of participants cited delay
in disbursing of money, 14% respondents identified inadequate online system and 19%
was for lack of skilled personnel. Members had another concerned of limitation in loan
facility as 21% of the respondents cited it and 20% had a concern for underutilization of
funds at ZASCU. ZASCU needs to be as strategic in the market as it faces stiff
competition from other lending institutions providing similar services.

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Vol.5, Issue No.1, pp 14 – 31, 2020 [Link]

Unique contribution to theory, policy and practice: The study recommended that
ZASCU needed to have modern technologies for online system, skilled personnel,
prudence in financial management, paying on time and increase on loan disbursements.
The challenges of savings are affecting negatively on ZASCU in creating wealth and this
has caused loss of confidence by stakeholders, and the sooner the solutions to mitigate the
saving challenges are found and implemented the better.
Keywords: Saving Challenges, Savings, Credit Unions and Wealth Creation.

1.1 INTRODUCTION
Savings and Credit Cooperatives (SACCOs) are established when a group of people with
a common bond (e.g. work place, religion, location, community, profession) decide to
save their money together for a commonly agreed purpose (Adekunle, 2011). Financial
Cooperatives are member-owned Cooperatives with the mandate to mobilize savings and
provide access to affordable credit to members as a way to assist their socioeconomic
well-being (ICA, 2013). In financial Cooperatives, the members are simultaneously
owners and clients and the Cooperatives are formed on common bonds, either community
bonds or occupational/association bonds (ICA, 2013). The common bonds are used as
security because they ensure that members have a sense of identity, mutual concern,
cooperation, loyalty and trust (Cheruiyot et al., 2012). This innovation mostly results in
members engage in more income generating activities and consequently improves on
their economic and social development. Borzaga and Galera (2012) state that the rise of
the Financial Cooperatives model and its success globally, is attributed to its
not-for-profit making nature as it strives to meet the needs of its clients and community at
large.
Savings according to Kazi (2012) is the scheme intended to encourage customers to
deposit more cash with the SACCOs and this money in turn will be used by the firms to
disburse more loans and generate additional revenue for them. Savings are valuable to
lower income households as a buffer against unexpected changes in income or
expenditure (Paxton, 2002). Credit Unions offer the benefits that arise from this form of
ownership in economic and social wellbeing (Nef, 2013). Methods of saving include
putting money aside in, for example, a deposit account, a pension account, an investment
fund, or as cash. Savings and Credit Cooperatives (SACCOs) have solid bases of small
saving accounts constituting of relatively low-cost source of funding and low
administrative costs. Cooperative ensures the permanence and growth of the SACCOs
even in turbulent economic times (Evans, 2001). This encourages more savings and the
pooled funds are then used to extend loans and other services to members. They provide

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ISSSN 2520-0852 (Online)
Vol.5, Issue No.1, pp 14 – 31, 2020 [Link]

reasonable rates of interest and provide financial services to enable members improve
their economic and social well-being. This saving effort and reduced current welfare is
compensated with interest paid by Cooperatives to members. Cooperative members are
encouraged to save as they receive an interest higher than the market offer.
1.2 Background
The potential of Cooperatives to respond to the social and economic needs of
communities, and to constitute a distinctive and dynamic sector of the economy has been
recognized internationally (Theron, 2010). Two social entrepreneurs named Hermann
Schulze-Delitzsch and Friedrich Raiffeisen) first introduced the innovation of the savings
and credit Cooperative model in the 1850s in Germany (Birchall, 2013). The Zambian
government embarked on promotion of Cooperatives throughout the country immediately
after independence. Zambia Army embraced the importance of these institutions and it
resulted in the formation of Zambia Army Savings and Credit Union (ZASCU) in 1983,
which had the objective of creating wealth for serving members. SACCOs have been
centered on providing loans to financially excluded people in the past, while savings have
been neglected (Mwelukilwa, 2001). Zambia Army Savings and Credit Union (ZASCU)
is a member Co-operative Societies of Zambia and its operations are enshrined in the
revised Cooperative Societies Act of 1998. Military Personnel of Zambia Army used to
access finance primarily through commercial banks, moneylenders, traders, friends and
relatives at undesirable conditions. These economic challenges led Zambia Army into
establishing ZASCU so that it mitigates those financial constraints faced by the
employees.
1.3 The Statement of the Problem
Savings and Credit Cooperatives (SACCOs) are one of the most viable and sustainable
institutions to provide accessible and affordable financial services to the vast majority of
Poor people (Aregawi, 2014). They are the main financial solution of the people who
have low income level. Zambia Army established ZASCU in order to encourage officers,
soldiers and civilian employees (CEs) to pool together funds. However, wealth creation
for some members of ZASCU is still low as there is a general concern on the challenges
of savings. Membership levels have reduced at a faster rate in the last 10 years despite
ZASCU having low interest on loans and high interest on savings. The driving force for
undertaking this study is that little is known about the challenges of savings that ZASCU
faces for its growth and sustainability of wealth creation.

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Vol.5, Issue No.1, pp 14 – 31, 2020 [Link]

1.4 Aim of the study

The study aimed at investigating the challenges of savings on ZASCU in creating wealth
and providing possible solutions. The study was done at Zambia Army Headquarters in
Lusaka where the headquarters of ZASCU are located.
1.5 Research objectives
i. To identify the existing challenges of savings on ZASCU at Zambia Army
headquarters in Lusaka.
ii. To examine the current challenges of savings that ZASCU faces in creating wealth
for members.
iii. To determine possible solutions to the challenges of savings on ZASCU, in creating
wealth for the members and the institution.
1.6 Research Questions
i. What are the current challenges of savings that ZASCU is facing in creating wealth?
ii. Why is ZASCU facing these challenges of savings in creating wealth?
iii. How can ZASCU overcome these challenges of savings in creating wealth?
1.7 Significance of the Study
This study will help ZASCU management and members to understand how savings,
credit and financial advisory services contribute to the creation of wealth. The study will
help to serve as a basis for further research by institutions and other scholars, having
contributed to its literature and methodology.

2.0 LITERATURE REVIEW

The contributions of various write-ups are reviewed and analyzed to establish their
contributions and as well as getting a backup literature on the study on this pertinent area
and identified the gaps in knowledge that this study proposed to fill.
2.1 Credit Unions
These Credit Unions are Cooperative financial organizations owned and operated by and
for its members, according to democratic principles (ICA, 2012).Such institutions are
created as extensions of their members’ economies and aim to provide them with
financial services (Barroso et al,2010).The basis of instituting a Cooperative organization
includes common business interest, location, professional goals and objectives, need for
social interaction on common interest, exploitation of common resources through group
scheme (Kassali et al, 2013).

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Vol.5, Issue No.1, pp 14 – 31, 2020 [Link]

2.2 Wealth
Wealth maximization is the process that increases the current net value of business or
shareholder capital gains, with the objective of bringing the highest possible return
(Jones,2013). Cooperative Unions are influential institutions in both industrialized and
developing countries that contribute to socioeconomic development, support employment
growth, and sustain a more balanced redistribution of wealth (Borzaga and Galera, 2012).
2.3 Savings
Savings according to Kazi (2012) is the scheme intended to encourage customers to
deposit more cash with the SACCOs and this money in turn will be used by the firms to
disburse more loans and generate additional revenue for them. Savings are valuable to
lower income households as a buffer against unexpected changes in income or
expenditure (Paxton, 2002. The amount to borrow is often a multiple of the members’
current savings.
2.4 Challenges of SACCOs the Global perspective
A challenge is a difficulty that bears within an opportunity for development. Once we
triumph over a challenge, we rise up to a higher level than before (Kluss, 2016). The
following are some of the challenges faced by Cooperatives in different countries in
creating wealth:
2.4.1 Challenges of SACCOs in Brazil
The member-owner management of Credit Unions is characterized by low levels of
professionalism and agency problems. McKillop and Wilson (2011) claimed that there
were over 49,330 Credit Unions in 98 countries, totaling over 184 million members in
[Link] their importance, the number of Credit Unions have dropped. These
Cooperatives are exposed to damaging political involvement and unbridled self-interest,
almost no planning, which leads to staffing deficiencies and an inadequate support
structure (Mckillop et al, 2011). These factors have caused dissatisfaction in stakeholder
benefits resulting in low membership.
2.4.2 Challenges of SACCOS in India
The Cooperative movement in India was formed in 1904 under the auspices of British
government. In India, co-operatives are unique as they were initiated and supported by
common business needs and aspirations. Despite all the success there are challenges that
SACCOs face in creating wealth .These Cooperatives are dogged by problems such as
inadequate capital, poor member participation, absence of common brands, inadequate
managerial skills, corruption and frauds (Siddaraju, 2012).

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2.4.3 Challenges of SACCOs in Ethiopia

Saving and credit Cooperatives have been playing a distinct and important role in
providing various financial services in rural areas of Ethiopia. However, the performance
of financial Cooperatives in mobilization of saving and provision of credit has been
inadequate (Kifle et al, 2013).The most critical challenges facing SACCO Co-operatives
are among others, lack of standardized accounting and prudential standards, lack of
concessionary credit facilities previously given by Government with donor contributions
(Olga etal,2017).
2.4.4 Challenges of SACCOs in Zambia
The Co-operative business models maintain the livelihood of communities in which they
operate, support the development of SACCOs, create sustainable employment and
improved social standing of the members and their families (Von Ravensburg, 2011).The
government and other development agencies in Zambia acknowledge the importance of
not only strengthen the capacity of small-scale farmers but also facilitate the growth of
SACCOs (USAID/Zambia, 2011-2015).The Cooperative sector have challenges that are
affecting creation of wealth to stakeholders. Bonger and Chileshe (2013) survey reports,
that Zambian Cooperative environment is characterized by lack of finance, imperfect
market, modern technology constraints, and inadequate education and profession of staff.
These challenges cause a lot of mistrust among members and lack of confidence in the
services being rendered to clients.
2.5 Theoretical Framework
Theoretical framework was based on stakeholder theory, Ricardian theory and growth
theory. This study was hinged on the Stakeholders theory which advocates for treatment
of all stakeholders with fairness, honesty, and even generosity (Harrison et al., 2015).
Ricardian theory of production and growth states that increasing either of the factors of
production in this case capital,while holding the other constant and assuming no
technological change, will increase output, (Bjork, 1999).The exogenous growth
models largely pioneered by Solow (1956) postulate that productivity growth can only be
explained through direct investment, population growth and technological progress. The
study was hinged on productivity, stakeholder interests and the growth in operations of
the institutions with the objective of satisfying members and meeting the set targets.
2.6 Conceptual Framework
The Conceptual framework shows that the independent variables in the study are
SACCOs’ services conceptualized as savings, credit and the advisory services have an
impact on the dependent variable (wealth creation).
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ISSSN 2520-0852 (Online)
Vol.5, Issue No.1, pp 14 – 31, 2020 [Link]

Independent Variables

Savings

❖ Savings (short term and

long term

❖ Interest rates

Dependent Variable
Wealth

❖ Investments
Advisory
❖ Financial management
❖ Investments Services
❖ Financial management ❖ Increased household income
❖ Other Services
❖ Starting of new businesses

❖ Expanding the existing businesses

Loans

❖ Loans (short term,

Figure 2.1 Conceptual Model
medium and long term)
❖

Source: (Nassazi, 2013) and modified by the researcher.

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3.0 RESEARCH METHODOLOGY

The research study used a cross sectional correlation and survey designs and employed
both quantitative and qualitative approaches or mixed method research.
3.1 Sample Size
The sample size used was eighty (80) people and these were selected from branches and
directorates of Zambia Army headquarters. Ten (10) members of ZASCU management
from were used for key informant interviews. Seventy (70) respondents from general
membership of ZASCU were used for the questionnaire.
3.2 Sampling Techniques
The study used stratified, purposive, and simple random sampling methods to select
respondents. The purposive sampling method was preferred for this study as it provided
for the researcher to make a personal judgment on the most appropriate sample
composition to meet the needs of the research question (Saunders and Lewis, 2012).
Stratified sampling was adopted to classify the staff of ZASCU according to their
departments. Then simple random sampling was used to select members from different
branches at Army headquarters and Arakan barracks.
3.3 Data Collection Methods
A survey was carried out and the data collection techniques that included the following;
key informants’ interview, survey and document review were used. These were carried
out using tools such as an interview guide and a questionnaire whereby a questionnaire
was administered to the respondents with semi structured questions with regards to the
subject matter.
3.4 Data Analysis methods
The Statistical Package for Social Sciences (SPSS version 21) was used for data analysis
by using descriptive statistics comprising of Tables, graphs, frequencies, means, standard
deviations, and percentages for ease of interpretation. Quantitative data was analyzed in
SPSS version 21 while qualitative data was analyzed using thematic and content analysis.
3.5 Ethical Issues
The research was conducted within an ethical framework as suggested by Creswell
(2014). This included obtaining informed consent from all participants, protection of their
identities and allowing them to withdraw from the study at any time. Approval to use the
data for research purposes was obtained from Zambia Army, while ethical clearance to
conduct the study was obtained from the University of Zambia.

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Vol.5, Issue No.1, pp 14 – 31, 2020 [Link]

4.0 DATA PRESENTATION, ANALYSIS AND RESULTS

This chapter presents the findings of the study, analysis and results of data collected from
the participants on both the quantitative part as well as the qualitative part.
Table 4.1: the existing challenges at ZASCU
Challenges Frequency Valid Percentage
Delay in disbursing Money 18 26
Lack of online system 10 14
Lack of skilled personnel 13 19
Loan facility limitation 15 21
Underutilization of funds 14 20
Total 70 100.00
Table 4.1 above shows the identified challenges faced by ZASCU in creating wealth. The
results found that 18 (26%) of participants cited delay in disbursing of money as a
challenge. 10(14%) respondents identified inadequate online system as another major
issue at ZASCU and 13(19%) said lack of skilled personnel. Members had another
concerned of limitation in loan facility as 15(21%) of the respondents cited it and 14(20%)
of the participants had a concern for underutilization of funds at ZASCU.
Table 4.2: Shows the usage of dividends by respondents
Dividend Usage Frequency Valid Percentage
New business 14 20
Household income 16 23
Investment 17 24
Financial management 10 14
Expanding existing business 13 19
The results in the Table 4.2 above show the participants who received dividend and how
they used it. Respondents that used dividends for starting new businesses were 14(20%)
and those that used dividends as household income were 16(23%). Respondents that used
dividends as an investments were 17 (24%)and those who it as financial management
were 10 (14%) . The last category that used it for expanding existing businesses was
13(19%). The Table 4.2 shows that majority of members used their dividends for
investment purposes and the least was for financial management.

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Table 4.3: shows participants that’s received loans from other lending institutions
Loans Frequency Valid Percentage
Yes 58 83
No 12 17
Total 70 100
From the Table 4.3, it was found those participants who got loans from other lending
institutions were 58(83%) and other category which did not receive loans from any
lending institutionswas12 (17%). The Table 4.3 shows that more members prefer getting
loans from other lending institutions than ZASCU and this is causing liquidity problems
at the institutions.

25
34%

20
27%

15 23%

10
16%

paying on time
Modern technology
Skilled personnel
avoiding ranks or
favours

Figure 4.1: Measures to put in place at ZASCU.

From the figure 4.1 above the respondents suggested the following measures: 34% of the
respondents suggested paying on time, 27% were for modern technology. 23% of the
respondents pointed the need for skilled manpower and 16 % suggested avoiding of ranks
or favoritism. The statistics show that members were so concerned for the above
measures to be implemented for the benefit of the institution and members.

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4.2 The current challenges of savings that ZASCU is facing in creating wealth
From the findings depicted in Table 4.1 describes what respondents perceive to be current
challenges of saving with ZASCU. The identified challenges are, delay in disbursements
of loans and withdraws, lack of online system, lack of skilled personnel, limitation in loan
facilities and underutilization of resources.
4.2.1 Delays in disbursement of Loans and withdraws
The results of the study showed that delay in disbursement of loans and emergency
withdraws was a major factor as 26 respondents constituting 26% cited it. Table 4.1 also
shows 29% of the respondents could not access their emergency fund withdraw in 24
months. The findings of this study are in line with a study by (Gu and Lee, 2009) that
proved to be cumbersome for Savings and Credit Cooperatives to meet clients demand.
SACCOs have seen increasingly strong competition from commercial banks which have
also developed the same products.
4.2.2 Lack of online system
The results from Table 4.1 shows that 14% of respondents found that lack of system are
another factor that has been impending ZASCU from achieving set objectives. Most of
the tasks are done manually making it difficult for staff to keep tracking of the records of
transactions. Lack of modern technology at ZASCU as resulted in the failure to
implement the online services. In a study by Sivaprakasam (2003) he narrated that online
system enhances the ability of customers to conduct business transactions anytime and
anywhere, faster and with lower fees compared with using traditional manual.
4.2.3 Lack of more skilled personnel
From the results in Table 4.1 it was suggested from 19% of the respondents that more
skilled personnel is need at ZASCU for efficient and effective delivery of services to
clients. Personnel of ZASCU are mostly uniformed and they occupy all management
levels. Therefore, the finding of this study is in line with a study by (Dahlberg, 2008) that
the contribution of the human resource depends on the various factors like organizational
environment, policies and qualification and other personal factors
4.2.4 Limitation in Loan facility
From the results depicted in Table 4.1 it has been found that ZASCU as a Credit Union
does not offer adequate loans as compared to other institution. This is cited by 21% of the
respondents who advocated for increase in loans in line with member savings. Table 5.6
shows members that got loans from other lending institutions were 58 (83%) and those
who did not get were 12(17%). The study is also in line with the study of Muheebwa

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Vol.5, Issue No.1, pp 14 – 31, 2020 [Link]

(2018) who stated that SACCOs must ensure that it has a reliable supply of cash at hand
to meet demands in loans and this determines financial health of future investments
4.2.5 Underutilization of resources
On the other hand, the result depicted in Table 4.1 found that underutilization of the
resources at ZASCU is another issue that has affected client satisfactions. It was found
those clients were complaining of the frequent management staff changes which has
highly attributed to inconsistence in policies and objectives. Prudence in management of
resources at ZASCU every time there is change in command results in changes of system
and operations. The findings are supported by (Luarn, 2005) who narrated that without
prudent management of resources in an organization, there is redundant growth to
prosperity. The other determinant factor is dividend paid to members.
4.3 Why is ZASCU facing these challenges of savings in creating wealth?
The results from the questionnaire, in-depth interviews and document review highlighted
the challenges ZASCU faces. The dearth of skilled personnel heightened by the poor
conditions of services affect the performance of Credit Unions. From the results it was
found that underutilization of resources at ZASCU is one of the factors that have been
affecting the institution from its growth and soundness. This study is supported by
chitungo (2013) that underutilization of resources continues as one of the major reasons
for financial distress at ZASCU characterized by inept management and instability in the
tenure of office of key management staff.
4.4 How can ZASCU overcome the challenges of savings in creating wealth?
From the results depicted in figure 4.1 above shows the respondents’ response were
measured against some suggestions that can be implemented in order to overcome these
challenges ZASCU is facing.
4.4.1 Payments on time
The results also showed that 34 % of the respondents cited that improvements in paying
of loans and emergency withdraw as one of the measures to success of ZASCU. As Credit
Unions adequacy of liquidity is important to satisfy emergency withdrawals of savings
made by clients. In the words of Luo (2010) stated that understanding, measuring and
tracking access to finance among the clients is a vital thing in determining how financial
markets operate to facilitate financial services for the poor. Payment of dividend as
shown in Table 5.6 is also important as members depend on it for future and current
spending and the consistency in getting it the better. The importance of dividends to
members and how they invest cannot be overemphasized as members depend on it for

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investments. The study is supported by Adera (2015) who emphasized on the importance
of dividend. Income from operations is retained as profit from interest earned on the
lending operation to pay dividend to the members on the basis of the shares owned.
4.4.2 Improvement in modern technology system
From the results in figure 4.1, it was found that 27% of the respondents suggested
improvement in modern technology that would bring efficiency in operations at ZASCU.
The Cooperative needs to have good system where most of the works can be done by
automated machinery rather than manual. The finding is supported by (Santhosha, 2011)
who narrated those systems in a banking/lending institution plays a very significant role
because it facilitates online activities for the organization growth
4.4.3 More skilled personnel
In every organization human resource play a vital role in the growth for efficiency, ability
and skills of the human beings for the growth and success of an institution? The results in
figure 4.1 show a 23% of respondents who advocated for skilled and competent staff.
Therefore, the findings of this study are in line with a study by Ramu (2008), who cited
that the contribution of the human resource depends on the various factors like
organizational environment, policies and qualification and other personal factors.
4.4.4 Avoiding of ranks or Favors
ZASCU management needs to be fair in its dealing with members and provide equal
services. It is for this fact that too much ranks in the Union results in favoring of the
people with higher ranks to get the loans compared to junior ranks in the Union. The
findings of this study are in line with (Santhosha, 2011) who reviewed that avoiding of
seniority can lead to fair distribution of funds in terms of loans among the combatants.
4.4.5 Members being equipped with financial management information
The results also found that if ZASCU as a Credit Union should take time to equip its
members on the financial matter could lead to great improvement in the organization. It is
for the fact that if members are educated on financial matters, it can lead to financial
transparency in the Union. (Ramu, 2008) supports this on the values of organization
transparency in bringing development in financial matters of organizations.

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5.0 CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the conclusion and recommendations of the study contextualized
this study with other studies at global, regional and local based on the findings identified
in Chapter Five.
5.1 Conclusions
The study presented the qualitative and quantitative evidence using data on Savings and
Credit Cooperatives in Lusaka. A mixed method research design was applied to
investigate insight in to the challenges of savings on ZASCU in Lusaka. In relation to
research objectives and questions, the results of data analysis provide descriptive findings
of the challenges of savings in wealth creation a case study conducted at ZASCU. The
literature review indicated several gaps that are of concern for wealth creation, hence this
study aimed to fill this gap. Savings, loans and financial advisory were found to be
directly linked to accumulation of wealth creation of an institution. The objective of this
study is to identify current challenges of savings on Credit Unions in creating wealth. The
identified challenges faced by ZASCU were delays in disbursement of funds, Lack of
online system, Lack of skilled manpower, Limitation in loan facilities and
underutilizations of resources. These findings are supported by the findings of Getachew
(2013) which showed that all SACCOs have challenges across the SACCO industry that
detracts from their ability to attain the desired goal of providing inclusive financial
services to its members and the community. This makes the SACCO less competitive
than competitors and need to design strategic solution to change.
The research’s second objective was to find out why ZASCU faces these challenges of
savings in creating wealth. It was found that challenges are as result of frequent
management reshuffles or change, lack of adequate accountability of resources, Late
payments, lack of education on Cooperative matters by members The study is also
supported by Carilus (2013) who identified the following challenges faced by Savings
and Credit Cooperatives such as: poor governance and leadership, lack of skilled and
educated manpower, small membership size, limited lines of products.
5.2 Recommendations
This can only be achieved if ZASCU invest massively in modern technology in order to
implement online services. The online system will culminate in reduction of costs and
time required to serve clients. The study found that the rank structure in the Army is vital
and always observed by all. Fair treatment of all ranks in service delivery results in more
productivity, harmony and transparency in operations from ZASCU and its members.
ZASCU need time to equip its members on the financial matter, could lead to great

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improvement in the organization. To ensure accountability, prudence, transparency, and

objectivity in resource utilization, management needs strategic policies that would help in
withstand competition from other lenders.

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