VBMaster

Why Choose VB Master

Features

VBMaster solves the challenges of manual record-keeping and member tracking by providing an automated platform that allows groups to balance their books anytime, with accurate and up-to-date data. VBMaster is your go-to solution for:

• Administration: Say goodbye to tedious manual bookkeeping. VBMaster takes care of all the calculations—interest, balances, and more—so you don’t have to.
• Effortless Record Keeping: No more complicated spreadsheets. Track every transaction with ease, and ensure accuracy with real-time data entry and reporting.
• Membership management: Keep an up-to-date record of your members and see the complete financial picture of your group at a glance.
• 24/7 financial Reporting: Get instant access to detailed financial reports anytime, anywhere. Keep your group informed with just a click.
• Transparency and Accountability: Generate detailed reports for all your group transactions, promoting transparency and accountability.
• VBMaster is a neutral data management solution; we do not handle funds or belong to any village banking group.

Discover the power of VBMaster – where efficiency meets transparency beyond spreadsheets.

Sign up now to start transforming your group’s financial management.

How It Works

1.      Create Your Group: Start by creating your Village Banking Group in just a few simple steps.

2.      Add Members: Easily invite members to join your group and get started right away.

3.      Automate Financial Tasks: Simplify the process of tracking contributions, loans, and interest with our automated tools.

4.      Stay Informed: Members receive real-time updates and reports, keeping everyone informed and accountable.

"Ready to make a change? Get started with VBMaster today!"

Village Banking Explained

VB-Explained

Introduction

1.1            Village Banking (“VB” or “Group”) are an informal savings and lending schemes organised outside the formal financial sector comprised of members who are familiar with each other and share certain commonalities through their family, friends, and community.

1.2            The membership is often by self-selection and the number of members in the group is limited. Members of a VB formulate rules and procedures to guide the governance of the Group (the “Constitution”). The Group is self-managed and does not involve the placement of savings/deposits or arrangement of borrowings by an individual, agent or company outside the Group membership.

1.3            The accumulated savings and interest earned on loans extended to members are the main source of benefits, which are shared-out at the end of the cycle.

A VB operates as follows:

1.1               A Group is made up of a number of people but usually between 10 and 30 members and the Group is usually based on a 12-month cycle. Meetings are held once a month or Biweekly. For other groups, meeting can either be physical or online or via WhatApp.

1.2               The members of the Group elect a management committee (the “Group Executive”) to responsible for record keeping and enforcing the rules of the Group.  The Group also sets its own rules regarding saving, eligibility for loan, tenure for loans etc.

1.3               Savings

1.3.1                   Each month, at a date agreed by the Group, a member is a required to save or deposit a minimum agreed amount. Members are encouraged to try to save more than the agreed minimum saving in order to build up their total savings quickly.

1.4               Loan

1.4.1                   Members of the Group are permitted to get a loan from the total amounts saved by all the members each month at an agreed interest rate. The interest rate maybe simple or compound. Interest on loans are usually at 10%-20%. The members may also agree the minimum or maximum loan a member may be eligible to get and the repayment period for each loan.

1.5               Interest Earned

1.5.1                   The interest made from the loans disbursed by the Group remains in the group as profits to be shared by all the members at share-out. The interest is shared in proportion to the total savings for each member. Therefore, a member who has saved more money has a bigger share of the interest each month.

1.6               Share-Out

1.6.1                   At the end of the 12 months cycle, each member is entitled to receive the total savings plus interest made.

Record keeping

1.7            The Group Executive are responsible for keeping all the records for the Group (Saving, Loan, Interest and Repayment). This is usually done using a spreadsheet. However, with VBMaster all the records are digitised for ease of access for each member. See the link for benefits of using VBMaster.

1.8            Record keeping is key to ensuring that the members know how much of the Group’s money belongs to individuals in the form of savings and how much profit the Group has earned from interest on loans, fees and other sources.

Excess Funds

1.9             In cases where there are excess funds, a Group may have a cash box with 2 or 3 padlocks with different officers keeping the keys to the locks.  However, currently most groups prefer to open a Bank account with 3 or more signatories.  For instance, ZANACO has a dedicated Village Banking Account – see link - https://www.zanaco.co.zm/news.php?p=264

Risks

1.10          The risk associated with Village Banks range from members unable to pay their loans to someone disappearing with funds. Therefore, a Group when coming up with its rules should find a way of mitigating any of the risks.