The Role of Sustainable Village Community Bank on Improving Standard of Living to Its Members

Abstract

The study assessed the role of sustainable VICOBA in improving the standard of living for its members in the Ubungo Municipal Council. The study used a cross-sectional research design and a mixed approach, i.e., qualitative and quantitative approaches, in data collection and analysis. From a total population of 395 who are members of VICOBA in Ubungo municipality, the purposeful and convenience sampling technique was used to reach a sample of 80 respondents, from whom relevant information was collected through questionnaires and interviews, as well as documentary reviews. Methods for data collection were employed by the researcher during the study, and the findings were analysed using Statistical Package for Social Science (SPSS) version 29.0.1.0. The findings revealed that respondents were influenced to join the model due to the fact that they are benefited by a low-interest rate loan, which they are using as a strategy to improve their living standards through different IGAs. They also benefit from it by paying their children’s school fees, while only 65% of the VICOBA are formal and only 35% are informal. The findings further revealed that 90% of the respondents agreed that there is a relationship between improvements in living standards and VICOBA. It is also indicated that sustainable VICOBA is facing various challenges, including lack of financial and management skills, shortage of financial resources, and non-repayment or late repayment of loans. The findings revealed that such challenges can be eliminated through the provision of various trainings, such as financial and management training to members, entrepreneurial skills, and proper supervision and support from the government, which are also the recommendations of this study for the role of sustainable VICOBA in improving members' standards of living.