Features of a Good Chama Management Software

The Chama world is evolving, pitting modern and technical features to manage its affairs. They are moving online to capitalize on efficiency, openness, and automation. In this regard, settling on a good Chama management software solves most of the problem. Every Chama has its processes, which characterize its identity and sense of belonging. Below are some of the important elements in Chamas and why software with such features is the dream of every group.

Loan Management

Loans are the main products of every Chama and act as an investment mechanism. Members contribute and borrow from the kitty, paying back with an interest. The interest realized is the return on investment for the Chama. Since every Chama has its interest rate, calculated per month, quarterly, or yearly, having a Chama management software that captures all these features is ideal. Once the member takes the loan, the system should automatically update the loan repayment figures. In case of a default, the multiplier effect kicks in and levies interest on the accumulated amount.

Accounting and Financial Reports

Accounting is the technical expertise that combines the inflow and outflow of money, expenditures, and taxation. Accumulating this information at the point of sale and aligning it to make business sense is a skill worth exploring. Chamas have access to this information since their transaction records are extensive, diverse and have a particular approach. A Chama management software that can collect and collate such data will boost the group’s analysis of their activities, which will help the plan faster and better. Such information also helps in audit and financial decisions.

Savings Management

Knowing what you have, what you expect, and what that means is a skillset worth exploiting. In financial inclusion, having money is one thing, and knowing how to use it to grow is another. Your go-to Chama management software should show you your investment, how much it has grown, and the growth rate over time. Fund pooling makes this idea worthwhile for a group since the amount collected is significant and holds more value. It would be ideal if the Chama management system has a literacy program to educate the customers on savings best practices.

Membership Management

Admitting and expelling members is a feature that helps instill discipline in group management. It might be as simple as having a button on the admin dashboard that onboards and suspends a member, but it instills compliance and responsibility among group members. Other features that fall under membership management include personalized communication, assigning responsibilities, fines, and penalties. In the same breath, you can also reduce their administration capacities, reassign responsibilities, and omit them from certain aspects of management.

Group Management

One of the main features in group management is communication, loaning and savings management. Whereas it is unadvisable to vest too much power on the group chairman, engaging other group leaders in central management is ideal. Features such as funds approval, suspending a member, and downloading financial reports should be a consensus, either among leaders or the whole group. An ideal Chama management software should have provisions to mitigate such issues and offer guidance on how well to include everyone in the group in management. However, there are some administration powers that the group founder or chairperson should have to offer guidance and direction.

Fines and Penalties

Rules and regulations are set to guide team members. Equally, enforcing the rules means creating fines and penalties for those who defy them. However, these monies are outside the precincts of normal savings and loaning. The Chama management software should automatically levy fines and penalties once a certain condition is not met, such as late payments, late response to meeting call-ups, or any other administrative breaches. The feature can be elective, but it should be there since most Chamas use it for self-discipline.

We also have some Chama management software features that are equally important, among them:-

Investment contribution, tracking, and management

Merry-go-round and social welfare management features

Portfolio management

In-build communication features

Your Ideal Chama Management Software Partner

Any dynamic and forward-thinking Chama should exploit almost all the features listed above. Technically, it is like borrowing the financial management concept from commercial banks, only that the Chama cannot trade with other financial players. The ideal situation is to have all the features mentioned above on your Chama management software but leave some as electives. Even if you settle on any Chama system, ensure it has the loan management component, accounting and financial reporting, and membership management. Make that bold step and join a Chama today, as they are a financial inclusion vessel, especially among the unbanked and underprivileged.