Introduction
A SUSU (also known as a rotating savings and credit association or ROSCA) is a traditional community-based savings system where a group of people contribute a fixed amount of money regularly, and each member receives the full pot on a rotating basis. This practice has been used for centuries across Africa, the Caribbean, Latin America, and Asia to help communities build wealth without traditional banks.
What is a SUSU?
The term "SUSU" originates from West Africa (particularly Ghana) and the Caribbean, where it describes informal savings groups. Other cultures call it by different names:
- Tanda - Latin America (Mexico, Central America)
- Chit fund - India
- Hui - China
- Arisan - Indonesia
- Stokvel - South Africa
- Esusu - Nigeria
Despite different names, they all operate on the same principle: community members pool money together and take turns receiving the total amount.
How Does a SUSU Work?
Example: 10-Member SUSU
- • Members: 10 people
- • Contribution: $100/month per person
- • Total pot: $1,000/month
- • Duration: 10 months (one cycle)
- • Result: Each member receives $1,000 once during the cycle
Member 1 receives $1,000 in Month 1, Member 2 receives $1,000 in Month 2, and so on until all 10 members have received their payout.
SUSU by the Numbers
$500B+
Estimated global ROSCA market size annually
1 Billion+
People worldwide participate in informal savings groups
50-80%
Of adults in some developing countries use ROSCAs (World Bank)
Zero %
Interest charged (unlike traditional banking)
Research shows that rotating savings groups have helped over 1.2 billion people access financial services globally (CGAP Research), particularly in communities underserved by traditional banking.
Benefits of SUSU Savings Groups
No Interest or Fees
Unlike loans, SUSU groups charge no interest. You get back exactly what the group contributes.
Community Trust
Built on relationships and accountability, making it accessible where traditional banking isn't.
Forced Savings
Regular contributions create discipline and help members save who might struggle otherwise.
Access to Lump Sums
Receive larger amounts for major purchases (home down payment, business startup, education).
No Credit Check Required
Perfect for those building credit or excluded from traditional financial systems.
How Technology is Modernizing SUSUs
Traditional SUSU groups faced challenges like lack of transparency, manual record-keeping, and trust issues. Modern platforms like Nestr solve these problems by providing:
- Automated contribution tracking and reminders
- Secure digital payments via Stripe
- Transparent rotation schedules visible to all members
- Trust scoring based on contribution history
- Digital agreements and accountability measures
- Mobile app accessibility for modern users
SUSU vs Traditional Banking
| Feature | SUSU | Traditional Bank |
|---|---|---|
| Interest/Fees | None | High interest rates |
| Credit Check | Not required | Required |
| Community | Strong social bonds | Transactional |
| Accessibility | Open to all | Barriers for unbanked |
| Flexibility | Group-defined terms | Fixed terms |
How to Start Your Own SUSU
- Choose trusted members - Select 4-12 people you trust who share similar financial goals
- Agree on terms - Decide contribution amount, frequency (weekly/monthly), and rotation order
- Set up accountability - Use a platform like Nestr or create clear written agreements
- Start contributing - Begin regular contributions and stick to the schedule
- Track transparently - Keep all members informed of contributions and upcoming payouts
Ready to Start Your SUSU?
Join thousands using Nestr to modernize their community savings groups with secure, transparent technology.
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