Table Banking for Modern Chamas

Why Flynta's Table Banking Principle is Revolutionary

Table banking is an informal contribution and loaning of funds within a group, ostensibly for personal usage. It is one of the main activities for Chamas, and acts as an unsecured loan. In retrospect, this is the cradle of financial inclusion on a small scale, as it gives the chama members an avenue to grow and develop using their contributions. They levy interest on the loan, payable monthly, which in turn grows the Chamas' revenue in the long run.

Signing Up and Account Creation

The chama leaders, preferably the Chairman, sign up on Flynta CBS with his/her primary details. He/she automatically becomes the administrator and can set up the group's details, among them the group's name, nature of their service (table banking), interest levied and duration of payment. He then invites the group members to create an account, and allocate responsibilities (treasurer, secretary and others). After account creation, the system automatically allocated the chama a unique identifier, which will act as an account number. The group will use the name for transactions and identification when dealing with Flynta's customer service.

Loaning

After members' contributions, the Chama can loan out the amount to its members. The member requests the amount, and the activity must be approved by at least 2 chama leaders, and one of them must be the treasurer. The interest takes effect immediately, and the member who borrowed the money can see what they are supposed to pay, and the deadline for payment.

Collection

Once the loan matures, the system sends a message to remind the member. They can pay directly from their account since it has a push notification. When that happens, the system will update the figures on the user account and the group ledgers, effectively closing that facility. This happens simultaneously throughout the lifespan of the Chama. All the data collected can be used to create a credit score, which can help the group and individual get considered when sourcing for funds within that ecosystem.

Table Banking is the Genesis of Financial Inclusion

If done consistently over time, table banking is the window that gives us a leeway in knowing how well a person manages their finances. We can use that information to later grant them resource assistance in an event they need it for a significant project or course. It becomes instrumental in growing the capacity of the unbanked, giving them a lifeline and development assistance outside the formal system, which is, in all spheres, financial inclusion. Join us today, and allow us to help you grow, develop and unleash your potential.