Ubuntu Philosophy in Finance
On today’s episode of “What If by Vuyanzi …” we’ll explore my take on how financial systems can be designed with the human’s best interest at the core of all operations hence fostering the “Ubuntu” philosophy — I am what I am because of who we all are.
The Story
In the Kenyan tech ecosystem, we hear people saying:
“… I lost my laptop and don't have finances to replace it …”
“… I would love to build my home but the banks' mortgage rates are high …”
“… I would love to attend droidconke but I can't afford to purchase the tickets …”
“… I live in Kakamega and most tech events take place in Nairobi …”
“ I’d love to transition to tech but the courses and books are expensive and I can't take of advantage of student discounts because I am not currently enrolled in any institution …”
“… got invited to a tech event in Silicon valley but I can't attend because I didn't get full sponsorship, I currently can't afford accommodation …”
We also hear:
“… I am buying droidconke tickets for 20 people in the community, reply with reasons you deserve to attend …”
“… I borrowed money from my friends and was able to buy my first apartment …”
“… I’d love to donate a laptop to a junior developer …”
“… happy to purchase udemny courses to beginners in tech …”
The Opportunity
Currently, financial institutions set unhealthy standards & rules that don’t favor humans e.g. the interest rates are high, recovering the loans are inhumane, applying for funds is long and tedious, etc.
Over the years, however, humans have been utilizing informal financial systems e.g. chamas and table banking to enable them to achieve their personal and financial goals. Scaling such systems is difficult when operations are done manually. Additionally, existing platforms have outdated UIs that frustrate users and discourage youths from seeing the value of crowdfunding and fundraising.
Unique Value Proposition
- Humans are at the center of the process and with the community being lean (5000 people is all we need), there would be no need for unhealthy system-generated credit scores.
- We’re stashing money for rainy days and members can request financial aid on a need basis. The funds are provided as loans or given out of goodwill.
- Members who’ve stayed in the group for more than “x” months/years are guaranteed a welfare package (members are not required to repay):
- When a member passes away 5000 people x 200 ksh. = 1,000,000/= ksh given to beneficiaries. Before the amount is sent, all loans in the group are paid first — thus protecting the people who invited you.
- When a member is terminally sick (contributed once in their lifetime) 5000 people x 300 ksh = 1,500,000/= ksh.
- When a member's spouse/father/mother/siblings die 5000 people x 100 ksh = 500,000/4.
NOTE: KSH (200 + 300 + 100) if paid monthly into the welfare kit = (5,000 people x 600 ksh = 3,000,000/=) x 12 months = 36,000,000 ksh annually that can be invested or loaned to outsiders/members to earn interest
Winning Solution
An app that enables community members to join, have synchronous visibility of their finances, leverage welfare packages, hire financial advisors/mentors, borrow loans at reduced interest rates, and enjoy partner networks.
Take a Look
We will not undo the harm in our society and institutions in a day. However, I hope we start having a commitment to integrity because there’s a significant difference between contributing to the problem and contributing to the solution at an individual and collective level. Let’s yearn for a benevolent human life by constantly asking ourselves what it means to be a human of the world.
Remember, you’re creative and brilliant, say it back 😉
If you’d like to say hello, drop me an email at vuyanziglorious@gmail.com or connect via LinkedIn.
Mob love,
Vuyanzi.
