Sterling Bank Plc has added rotation savings and peer-to-peer lending feature to the available options on OneBank, its digital banking platform. The new feature, known as Ajo Scheme, is the digital construct of Ajo, Esusu and Adashe, the oldest informal means of collecting and saving money through a savings club or partnership for big-ticket transactions such as a down-payment on a house, car, gadgets, school fees, overseas trips.
The Ajo Scheme will allow members that are OneBank users to make an agreed monthly contribution with funds accessed on an agreed rotating basis.
Group Head, Digital Banking, Sterling Bank Plc., Oladipo Alabede, said; “The Ajo Scheme can be initiated by an interested customer who will invite family and friends to join the scheme. However, all participants must be registered users on OneBank and must accept the invitation request.”
“There is also an allowance for participants to switch collection positions after being accepted to be part of the scheme. Debiting participants’ accounts and remittance to beneficiaries is automated, the process runs daily and will debit participants on the day he/she has selected.”
“Where the account is not funded, the process is repeated for the entire day selected by the participant. If the contribution still fails to come in, the scheme continues as is. The benefactor for that cycle will get only the contributions that came in for that month.”
“Disputes relating to unfunded accounts will not be handled by the bank, participants will have to sort out the dispute outside the App.”
“Someone can be added without his/her knowledge if the creator knows the email address. Still, such an added person will have to accept before he can become a valid participant.”
“Once the Ajo Scheme starts; it cannot be dissolved until its cycle is completed. Tthere are terms and conditions of the Ajo Scheme that participating members should accept and that the bank will not guarantee payments.”
“Participants will see the details of collections like the number of paid participants, number of unpaid participants, the number of participants that contributed in a particular month. Same for the total amount contributed, the current cycle of contributions, and the cycle of disbursed amounts be available on the App.”
“Monthly disbursements will occur on the 28th day of every month after all contributions for that month had come in.”
