On Monday, 01 June 2020, United African Stovel was invited to a radio interview on Retro Radio’s Business Hub, speaking to the show’s host, Brett Hermon. The Business Hub is a segment dedicated to topics regarding businesses, entrepreneurs, personal development, and positivity. The show has, recently spent time discussing how the current COVID-19 pandemic is affecting the economy, and its effect on both businesses and individuals.
Darren Langbein of United African Stokvel joined Brett Hermon, to tell listeners about a different way to save money during this difficult time – stokvels.
We’ve taken time to pull out bits of interesting information from the radio interview. Listen to it here: Get to Know UASV And Our Team
History of United African Stokvel
Back in 2016, Darren Langbein was viewing the current industrial revolution and how he would fit into it. After spending time researching various ways he could fit in, financially, the concept of a stokvel came to light.
Stokvels themselves are an age-old tradition, dating back to the time of Settlers. They used this form of saving money to buy stock at the end of the year, feeding their family for the next year. It has now grown into a massive business model, with almost R44 billion a year saved in stokvels.
Rather than using the traditional South African stokvel model, United African Stokvel took the digital route, keeping to a future ready mind set.
Traditional Stokvel vs Digital Stokvel
A stokvel, in its traditional sense, is a way of saving money through group contribution. A traditional stokvel usually consists of members that know each other, such as friends or family, and usually a meeting is held monthly.
How does a stokvel work? Members of contribute a set amount of money every month for a certain period of time, usually a year. At the end of that year or set time, each member receives a lump sum of the contribution.
The concept of a stokvel is not uniquely South African, even though the word itself is. South African’s have used stokvels for various financial needs, such as a funeral stokvel, grocery stokvel etc; it’s an easier method of raising large sums of money in a short amount of time.
United African Stokvel’s take on a digital stokvel is more about saving money rather than investing for a specific need. Also, members do not know each other or have monthly meetings as traditional stokvels do. The entire process is digital, from how you join to your actual pay day.
The digital side of things also help United African Stokvel make sure that all personal details given when a member joins, belong to the person joining. Details such as ID, phone number, bank account details etc, have to match the joining member. This information is used in compliance with the POPI act, keeping members safe and United African Stokvel, accountable.
How does United African Stokvel’s platform work?
There are 12 savings options available, each one built to cater for different budgets. Each savings plan uses the same savings model, with member contributions starting at a minimum of R200 to a maximum of R5000.
The money is placed into United African Stokvel’s Nedbank Trust account, where it is invested in telecommunications and property, growing at an interest rate just shy of 12% per year. This guarantees a little extra cash for members.
The most important thing members must have to join, is a South African bank account.
New Savings Options
A survey earlier in the year led to United African Stokvel expanding their savings options, creating these savings opportunities:
- Flexible Lobola stokvel
- Five year/60 month stokvel
- Six-month Maternity stokvel
- Family and friends stokvel
Benefits of United African Stokvel
Often times, we only consider the monetary benefits of saving money, however Darren Langbein said the following,
“It’s quite shocking how much money you can save, when you start looking, carefully, how you spend your money. This wasn’t the intended consequence of the stokvel, but it has become one, now. Now that I’m saving, it’s a mind-set change.”
What United African Stokvel provides, is a savings platform to help bring your financial goals to life. Each year, that monthly savings can go a long way towards Christmas shopping, January school needs, birthday celebrations and so many other occasions.
Not everyone’s goal for saving is the same, and thankfully United African Stokvel isn’t trapped by the set savings options. Members can speak to consultants bout how they want to use the platform to save, and UASV does the rest.
We look forward to an exciting time over the next 6 months. Follow our social media platforms to stay updated: