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Financial Security through Investment Clubs

Integrating finance, investment and co-sharing

Photo of Joseph Joram
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The concept of older people coming together to work towards a common goal as investors has been very supportive in giving life meaning. Rainbow Savings and Credit Organization is a non governmental organization based in Kenya, giving older people opportunities to save, invest and work towards reaching their club goals. Depending on their needs. Older people have diverse needs. There are those who seek to invest their savings in land, housing, business etc working together as an investment club. Social workers and credit officers attend their meetings to offer guidance and support enabling club members to remain focused. Many have successfully realized their dreams through this initiative. The investment clubs provide a focused investment opportunity.

What is a provocation or insight that might inspire others during this challenge?

A stitch in time saves nine

Tell us about your work experience:

I have been involved in establishing an entrepreneurship program for refugees years ago as well as worked with mothers of street children promoting their efforts to join a local savings cooperative.

Specifically, please check all that apply:

  • I'm currently a member of a credit union

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Photo of Kate Rushton

Hi Jordan, interesting post! It is great to have you on board!

Can you tell me more about the Rainbow Savings and Credit Organization? How do you assess people's needs and work out what are the best solutions for them?

Also, any chance you could find an image to go along with your post? Images help grab attention and tell a story. You should be able to use the Edit Contribution button on the top of your post and follow the instructions to add images from there. Looking forward to seeing more of your inspiring insights on OpenIDEO.

Photo of Joseph Joram

Hi Kate,
Rainbow Savings and Credit Organization operates like a cooperative where people register as members giving them a platform to save. Currently it has an active membership of 422 people comprising youth, women and men. The organization has a staff comprising social workers and credit officers who have a good grasp of financial management. The social worker assesses the needs of individual members through casework, discusses their vision and dreams and links them up to respective investment clubs comprising members with a common investment plan. Rainbow supports these clubs through meetings to address their vision and goals. For example members interested in land are assisted to acquire land through their share contribution. Once they clear up their payment for the land, they are given their title to the ownership of the land. Those interested in venturing into lets say a hairdressing business are clustered together into a hairdressing investment club and contribute their savings towards achieving their ownership plans. Rainbow advances them capital based on their share contribution which is invested into their preferred business. Rainbow also offers them business advice, prepares for them business plans to assess viability and supports them to fulfill their investment aspirations. In this way club members are able to generate income part of which  is used for repaying their loan, part in saving and the rest for their use.  This has enabled communities to realize their goals without undue stress. Club members meet regularly to share their aspirations and give each other moral support.

Photo of Kate Rushton

Hi Joseph! 

I am very impressed. This organisation sounds very worthwhile and organised benefitting all the stakeholders involved. 

It reminds me of this post - https://challenges.openideo.com/challenge/financial-longevity/research/the-power-of-peers-to-encourage-savings - by Anne-Laure Fayard on peer-to-peer savings.

I also see analogies to Kenneth Walton 's post on re-financing life at 50 - https://challenges.openideo.com/challenge/financial-longevity/research/life-re-financed-at-50-microfinancing-for-aarp-youth-62-and-under

I hope I see you in the ideas phase in one days time. 

Photo of Joseph Joram

Hi Kate,
Many thanks for your feedback. I will be there soon. Still wracking my mind on "what else?" ideas before penning down what I think might work out best. Cheers!