Ethiopia: eQub digitizes the tontine system through its mobile platform

By : Adoni Conrad Quenum

Date : jeudi, 29 février 2024 13:29

eQub is an Amharic term for a rotating savings and credit association (ROSCA). Members of an eQub pool their savings, which are then distributed to each member in a predetermined sequence.

eQub, an Ethiopian fintech startup, has developed a solution that allows users to collectivize savings via its mobile application. The startup, headquartered in Addis Ababa, was established in 2020 by Alexander Hizikias. This week, eQub claimed victory at the Fintech Pitch-off competition at 4YFN 2024, held during the Mobile World Congress in Barcelona, Spain.

Equb is an alternative means to achieve saving and improve access to credit by rotation of savings. Individuals agree to pool their savings for a defined period to jointly save by creating an eQub,” it explains.

Currently available only on Android (with an iOS version under development), it enables users to register by providing personal details, and verifying if they have a bank account and a mobile phone to access the platform. After that step, users then join an existing savings group or one established by the startup.

Users also have the option to create their group but this requires the provision of additional information such as address and biometric national card. The user can set the conditions for joining their group and launch the eQub at a suitable time. The number of rounds in the tontine is dependent on the number of participants.

eQub awards points to participants, which can be used to qualify for deferred payment services and other financial services it plans to introduce soon. According to Nahom Michael, eQub’s business development manager, the solution has attracted over 25,000 users and has formed over 200 savings groups since its inception. The fintech startup generates revenue when tontine winners withdraw funds from the platform.

Adoni Conrad Quenum


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