Ins, outs of stokvel trade

TECHNOLOGY: OUT WITH THE OLD, IN WITH NEW

Apps allow for transparency with detailed monthly reports, real-time account balance and notifications.

Prudent management is key to a successful property stokvel or any other type of stokvel for that matter. Fortunately, today’s technology has advanced exponentially and has found its way into business offering tailor-made solutions for all types of businesses.

And it’s no surprise that technology would at some point find its way to stokvels and it has done so through online mechanisms such as web-based stokvel management platforms or better yet, easy-to-use and convenient mobile apps.

Managing a stokvel is like managing a business but at times, stokvels mistakenly assume that basic management principles do not apply due to their informal structure and setup. By so doing, they neglect to put in place policies and procedures that govern the stokvel. Additionally, a lack of detailed management can be attributed to the fact that participation in a stokvel is not a fulltime occupation.

In most cases, if not all, participating members have fulltime occupations elsewhere causing most stokvels to only meet once a month or worse still, resorting to telephonic interaction when contributions are due.

If that is the case, then a simple management system must be installed that doesn’t take away much time from one’s occupation but at the same time keeps all members appraised of all the affairs of the stokvel.

For example, an individual stock-trading account comes to mind where one is not focused on his trading account the entire day but has the ability to login to his account to check his investment portfolio.

In the same breath, technological stokvel management tools such as apps have been designed to help stokvels manage administrative functions.

They allow for an easy access point where all members can at any given time monitor the affairs of the stokvel. This because relying on the stokvel’s administrator for constant updates is inefficient and worse still, that individual could give an inaccurate account of the stokvel due to his indiscrepancies. But not with a stokvel app because the greatest benefit of it is transparency.

Stokvel apps allow for transparency with such features as detailed monthly reports, real-time account balance and real-time notification of withdrawal of funds. Additionally, they have brilliant security features such as the requirement of a onetime pin sent to multiple members before certain actions can be executed.

Moreover some stokvel apps such as StokFella offer more than stokvel administration, but have investment vehicles that provide investment options to stokvels.

Stokvel management by nature is a tedious task due to its informal structure and lack of regulation but technology can greatly increase administrative efficiency.

Munya Duvera is CEO of Duvera Elgroup