Money Club Apps: Everything You Need To Know
Looking for a way to make managing your money club easier? Find out everything you need to know about money club apps in this guide.
What is a ROSCA?
ROSCA stands for Rotating Savings and Credit Association — but they’re a lot simpler than they sound. ROSCAs are an academic name for what we at Bloom Money call "money clubs", in which each member pays in regularly. Each month (or another established interval), one member of the group receives the total payout.
This kind of money club is part of traditions all over the world. There are different names for money clubs in different communities and cultures, including pardna, committees, gameeya, tanda, esusu, ajo, and ayuuto.
What is a money clubapp?
A money club app is a program you can download to your phone or other mobile device that helps you set up and manage your money club. It’s designed to make it easy, secure, and convenient to run a pardna scheme or committee.
Most money club apps include features like:
- Individual accounts — so each committee member has their own secure login
- Linking to bank accounts or bank cards — so pay ins and payouts can be managed in the app
- Messaging integration — so it’s easy to share information between group members.
Is a money club app the same as a pardna app or ayuuto app?
Yes! Money club apps are the same as pardna apps, ayuuto apps, committee apps, and any other technology that’s used to manage your informal money club.
However, while all these apps are designed to help you manage your money club, they often have slightly different functionality and rules.
How using an app can help you run your money club
Setting up a money club isn’t easy. You need to track incoming cash, arrange payouts, and account for people who miss their payments. This often involves carrying large sums of money around the country, monitoring income and outgoings, and a lot of travel.
A money club app takes the headache out of all this. It allows you to save in a trusted, traditional way — with all the convenience of modern technology. No more guarding that notebook with your life!
Money clubs apps allow you to:
- Use your smartphone to manage your contributions — everything you need is in one place
- Send and receive money to your connected bank account securely — you don’t need to carry large amounts of cash
- Exchange money from the comfort of your home — there’s no need to spend time and money on delivering money in person
- Include people from all over the UK in your club — wherever you go, you can access your money club
- Plan and build wealth across your community — creating more opportunities for future generations.
How much do money club apps cost?
It’s usually free to download a ROSCA app. However, to keep the platform running and continue developing new features, you’ll pay a fee to set up your money club in the app.
The fee is usually a percentage amount that scales depending on the size of your payout. It's often less than you’ll pay in travel fees or tipping a hand to your money club organiser.
Are money club apps ethical?
Money club apps are different from savings accounts and normal banking apps. They don’t pay or charge interest on your funds, and they don’t invest your money. As a result, they’re a simple, ethical way to pool fundswith your community. Find out more about ethical money management and Sharia-compliant saving.
Are money clubs apps safe?
Money club apps are much more secure than exchanging cash. By linking your bank account to the app, you can send and receive money directly, without having to withdraw or deposit large sums of money.
They’re also a lot more convenient than regular online banking. Because your committee members are linked in one central place, it’s easy to send and receive money from them without accidentally transferring it to the wrong account. Learn more about the safety of using money apps.
Bloom’s money club app: how does it work?
Bloom’s app offers a safe, ethical way for you to set up and manage your money club. Invite up to 10 people to join your Bloom Circle, then chat and exchange money with them through the app.