Do sustainable savings decisions through deposits and shares by members influence the choice of financial cooperatives?

The study investigates whether the choice of a financial cooperative is influenced by sustainable savings decisions through deposits or shares. The moderating influence of digital financial services (DFS) and an individual's reason for joining a financial cooperative are also investigated. Data are gathered from a cross-sectional sample of 334 respondents drawn from 86 savings and credit cooperative societies (Saccos) in Kenya. The final sample comprises of 46 deposit-taking (220 respondents) and 40 non–deposit-taking (114 respondents) Saccos. Two-sample tests, correlation and logistic regression analyses are performed to establish the factors influencing Sacco choice. Consistent with the mutual incentives and lifecycle theories, the findings reveal that an individual's choice of a financial cooperative is influenced by individual, as well as socio-economic and environmental factors. The study finds that the desire to mobilize sustainable deposits is a more important consideration compared to building shares when choosing a Sacco. We further find that DFS are important in choosing a Sacco owing to the increased engagement and transparency associated with them. Other factors influencing Sacco choice include marital status, income levels and household location. The results help inform the focus by Sacco managers, regulators and policy makers in terms of the growth incentives to consider.