In a recent study by Forbes, 56 percent of Americans have less than $1000 in their checking or savings account. These numbers are much lower in emerging economies. This basically means that more than half of the population is living paycheck-to-paycheck. The consequences could be damaging if anything ever goes wrong preventing a single paycheck.
Traditionally, cash strapped individuals and entrepreneurs have been solely dependent on IRAs or short term Loan products which have its restrictions.
Formal sector credit is often out of reach due to high interest rates (typically between 20 and 30 percent). Banks also demand collaterals that many informal entrepreneurs cannot provide and widely ruling un-regulated banking practices may imply additional costs to facilitate the application process. The traditional process takes time and can be very costly while the Susu Money App provides access to credit that would otherwise not be available.
SuSu is based on this premise—saving money with fewer restrictions with people you are familiar with (or share a similar financial goal) and get the money when you want. This eliminates the need for short term costly traditional banking products saving. This idea has been around for hundreds of years in most African and Caribbean countries and is now available on your phone with the Susu Money Turn App.
How Susu Money Turn App Works
The Susu Money App uses the concept of a “money pool” wherein participants in a collaborative savings circles will pay a fixed amount to the group’s savings pot
every month/week/bi-weekly, depending on the group’s frequency cycle. At the completion of each cycle, a group participant becomes eligible to collect the pot.
Within a Susu Money Group, participants regularly pay a fixed agreed upon amount into a pool created by a group Admin.
During each cycle, group participants are expected to make a contribution with one of them receiving the entire contribution at cycle completion. Thus, if 20 people each contribute $10 per week, every group member will receive $200 dollars at a certain point in time.
The cycle collection interval is defined at the time of group creation and participants are provided with the flexibility of switching turns with other group members.
The content below summarizes some of the key features of the Susu Money Turn App:
Susu Money Turn App makes saving a more collaborative and social exercise. One you can accomplish with a group of trusted family and friends or total strangers with a shared savings goal.
Frequent participation in a Susu Money Turn group by making contributions, or making regular money transfers can increase the user’s ratings. Higher rating users will acquire access to higher value savings groups thus increasing their pot collection.
Our SMT App is designed to help the working middle-class attain their savings goal or fund an immediate financial need without incurring more debt at exorbitant interest rates from traditional lending institutions.
0% Interest rate. Yes, that’s right. Who doesn’t love receiving money with zero interest? With the Susu Money Turn App, this becomes a reality.
Fast and simple money transfer capabilities. The Susu Money App provides a user-friendly money transfer feature so users could transfer and receive money from other App users in real time.