LOOP app’s new Money Pool feature combines your group’s savings into one spot
LOOP Money Pool Feature: Long before microloans or online crowdfunding, informal lending circles-also called money pools played a critical role in communities.
These money pools allowed friends and family to unite and support each other in saving for short-term goals. The way it worked was simple: one group member would be selected as the custodian, responsible for collecting and safeguarding the pooled funds.
The purpose of these arrangements was to leverage each member’s financial contributions to help others save money, meet short-term financial goals, or create a safety net. They were handy for providing an immediate source of funds for unexpected expenses, such as medical bills, household repairs, or educational costs.
It was only after digital platforms like PayPal implemented the idea that it truly caught on, with there being virtual money pools one could create, allowing users to amass funds similarly. Although highly potential, the PayPal money pool feature was discontinued in 2023. This move officially closed the digital adaptation of a system that has been around for centuries.
In Kenya, the likes of LOOP DFS, a fintech subsidiary of the NCBA Group, through LOOP have adopted money pooling as a product feature to drive up digital financial inclusion.
The LOOP Money Pool feature is a social payments service that allows LOOP users to set up and manage collective savings efforts easily. This feature allows customers to create groups for fundraising, invite members to join, and provide a digital wallet for collections.
Whether it be short-term savings goals, charitable drives, or unexpected expenses, LOOP Money Pool helps its users keep the group contributions in order. It helps them collect money transparently and accountably to track contributions.
Real-time notifications and intuitive interfaces allow members to contribute at any time that suits them and allow organizers to keep track of how the pool is filling up.
This feature does not just bring traditional money pools into the 21st century; it also greatly improves the coordination and safety of money collection, rendering it a household name for group saving schemes in Kenya. In so doing, LOOP has managed to digitize a practice that is centuries old, providing an efficient and transparent solution concerning collective financial goals.
A Money Pool can be easily set up on the app and shared with family and friends to contribute to the Money Pool account. After the expiry of the money pool, all the collected funds are transferred to your LOOP account. The LOOP money pool will expire when either the target date arrives or when the target amount is met.
This functionality is available on the LOOP app under the Grow Tab.
The LOOP app is available for download for Android devices on the PlayStore and IOS devices on the Apple Store.
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