Transparency in savings groups
In all types of savings groups no matter how big or small they may be, transparency is always the
major point of concern. People can’t stop talking about it and we always assume that every group has
it. However an important question to ask yourself before you join a savings group is “What is
transparency and why is it so important?”
In a savings group, being transparent means being honest and open when communicating with other
group members about all matters related to the savings group. So the reason why it’s important is
because every member wants to be aware of everyone else’stransactions, activities and to make
sure everyone is involved. No one wants to feel left out of important group decisions and activities
that directly impact them. The solution for this problem is for a savings group to set up regular
physical meetings and for all members to vote on important decisions like when to make
contributions and when to borrow.
However another issue with transparency may arise when the transactionsaren’t recorded by the
treasureror if the transaction isn’t recorded accurately. The reasons for this problem are either the
treasurer forgetting to keep trackor corruption within a savings group. Major financial malpractices
in savings groups demonstrated that directors can mask information by using vague accounting
records and complicated systems which might lead to unpleasant consequences.As a result, such
actions can misinform the members of the financial status of the savings group while also creating
issues with book keeping in the future.
This issue can also be solved by using online savings platforms that are built to enable all members in
the savings group to check and receive information about group transactions in real time. As a result
the most important outcome is that it creates an honest savings culture that members can trust.
However a savings platform doesn’t only provide transparency from a book keeping aspect; it can
also provide transparency with things as minute as contact details, group information, sharing
documents and KYC data. Such features allow all group members to have access to an equal amount
of information that isn’t dependent on external factors like reputation in an organisation and who
you know in the organisation.
Transparency will always remain as an important issue as long as savings group exist, however the
problem can be mitigated by creating structures for all your members to follow while also using a bit
of technology to aid your processes. Transparency can only work where there is truth and the best
solutions should promote both of them at the same time.