Susu (informal loan club)

Not to be confused with the related, but mediated form of Susu as predominantly practiced in Ghana.

Susu is an informal means of collecting and saving money through a savings club or partnership as practiced in Ghana and the Caribbean. and is usually taking turns by "throwing hand" as the partners call it, where they pay a specific amount of money in one hand when it is collected they pay it to a person and each month every person in the group will collect a sum of money until the next time when another su-su is thrown. Immigrants to the United States from that area.[1] The concept of a susu is used throughout the world and has over 200 different names that vary from country to country.[2] The name may come from the West African Igbo or Yoruba word isusu or esusu which is translated as a pooling the funds.[1][3] The funds are generally gathered with a set amount contributed from family or friends each week.[1] An estimated 3/4 of Jamaican immigrants in New York participated in susus during the 1980s[4]

These savings clubs are mainly used in other countries as an alternative means of accessing capital when traditional lending is not readily available. As cultures migrated to the United States they brought this savings tradition with them. Not surprisingly, the "underbanked" in the United States will turn to this model when facing the same lack of access to capital. Such model remains very popular in various offline community associations such as Lending Circle in San Francisco and the Bay Area Nigerian Association in Oakland California. The younger generations[5] have now created companies that modernized susus with an online platform to increase the scalability and the transparency of such model, some of these online platform include eMoneyPool, Monk App, Puddle in the United States and Partnerhand in the UK.

See also

References

  1. 1 2 3 Sasha Abramsky Newcomers Savings and Loan October 22, 2000 New York Times
  2. ↑ "ROSCAs: Whats in a name?".
  3. ↑ Tibbles, Anthony (2005). Transatlantic slavery: against human dignity. Liverpool University Press. p. 55. ISBN 0-85323-198-2.
  4. ↑ Jamaican Emigres Bring Thrift Clubs to New York June 19, 1988 New York Times
  5. ↑ "Traditional Mexican Savings System's Grow in Popularity".
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