Merry-Go-Round
Taking Rounds Towards Financial Inclusion and Independence
Merry Go Round is an Informal group where members contribute equally on a regular basis (mostly monthly) and give the amount to one of the members. They take turns until everyone in the group receives the amount, after which it is considered end of the cycle.
The amount contributed does not appreciate or grow any interest. The members rely on trust that every member will contribute even when their turn has passed. At Chama Systems, we bring concurrence, trust, effectiveness and convenience into the Merry Go Round sector. Our platform takes away the tedious paperwork so that the group can concentrate on other important issues.
Why Chama Systems is Your
Go-To Merry Go Round Partner
Trust
You have all you need to manage your group effortlessly
Secure
Our system run of the most secure protocols globally
Affordable
We do not have any registration or maintenance fee
Convenient
You can manage your group from anywhere in the world
Benefits of a Merry Go Round
Accrued Amount
All the group members contribute and give the whole amount to one person. It is a form on loaning that splits payment equally, spread across the entire loaning cycle.
Social Inclusion
Most merry go round members belong to the same circle, making the group socially cohesive. The contributions give them the opportunity and resolve to grow economically.
Unity of Purpose
Members come together to merge their savings/earnings to help each other grow. Since the amount is equal, they can decide to purchase an item or asset for every member per cycle.
How Merry Go Round Contributes to
Financial Inclusion
In rural areas where income and income generating activities are not certain or regular, there is the need to pool funds together amongst members. The Merry go round concept comes in handy since it facilitates members, one at a time, to use the collections and grow economically. Essentially, it is a loan carried forward, spread in equal periods. For example, if you are 10 members, you pay equal amount of money in 10 months, and receive the “loan” from other group members once in 10 months. The beauty of merry go round is group trust and cohesiveness. Being from the same circles with known social status, ascertaining compliance is possible. However, as diversity grows, so does merry go round group members. Nowadays, a merry go round can be managed online, which is where we come in. Our work is to pool these funds together in an account for compliance and uniformity, before being sent to the deserving person. With trust growing thinner lately, every merry go round deserves a system that can help them manage their operations.
The Basis
The informal approach to merry go round makes it hard to quantify and note its importance in the financial sector. By collating this information, and documenting its importance, members are encouraged to do more and achieve more goals. It might even end up being a savings scheme towards bigger goals, all in one system, which is our goal as an organization. Funds pooling is important, thanks to scarcity as a characteristic of money. Statistics show that the unbanked comprise of over 55% of the total Kenyan population, and their meagre income, if pooled, can be game-changer in social development. With no structure, we have no imperial data to measure such productivity. Our hope is to use this revelation to educate people of the importance of funds pooling as a tool for financial inclusion. Join the movement today and be part of the financial inclusion champions in Kenya.
Merry-Go-Round
Frequently Asked Questions
Merry Go Round is an informal group whose member pool funds together for social and economic reasons. After collecting the amount, the hand it over to one of them for use, until the whole team gets the amount. It is particularly common in rural and low income communities, thanks to its cohesive nature.
With Merry go round, no funds are withheld. Once the members contribute, the whole amount is given to one of the members. This is unlike table banking where members contribute, and another borrows, to return it with interest. Essentially, the amount grows with time, earning members dividends.
Members contribute and give the amount to one of them, which grows their economic abilities. Most merry go rounds have goals, and once a member gets the amount, they already knows what to do with it. Such structures, though informal, are good financial inclusion avenues, which when tapped, can increase rural contribution to economic growth.
Our system is secure, running on a reinforced SSL for maximum security. Be assured that no one has access to your private or financial information. We also have a data privacy policy for internal checks and balances, which is guided by the Data Protection Act of Kenya.
We are automating the process, acts as an escrow account and provide professional advice on the funds-pooling culture. Our overriding theme is Financial Inclusion, which aims to offer self and communal growth as a means to social growth and development. Our trainings are custom-made with social growth in mind, which is a progressive approach for people at the bottom of the pyramid.
One Merry Go Round group can have up to 50 members.