Here at WeTrust, we believe our Trusted Lending Circle products can truly change the world! In addition to their traditional use as a way for people in a group to save together and receive money when they desperately need it, we’ve seen other unique situations that would be well suited for our Trusted Lending Circle (aka ROSCA) products. In Part 2 of this 4 part series, we take a look at a few uses of this mechanism! (For a look at Part 1 which focuses on using ROSCAs for buying shared resources and charity, click here).

WeTrust ROSCA for Hosting Regular Social Gatherings

Let’s say a group of friends want to host regular parties in a rotating way. It would be unfair to have the parties at the same person’s home every time and make that person clean up the mess every time. It would also be unfair if one person ends up buying most of the food and the drinks for the party every time.

A Trusted Lending Circle (aka ROSCA) could be used to pool the funds for a regular party. The winner of each round will then host the party for that time period. In some cultures, circles like this are already used to facilitate regular social gatherings, such as the Gold Day tradition in Turkey. Party ROSCAs could be used in hosting everything from potlucks to poker nights to costume parties. They could even be used by organizations instead of individual people — for example, the fraternities and sororities on a college campus could participate in a weekly Lending Circle, and the winner each week would use the funds to throw a party at their house.

Funds are pooled in a WeTrust ROSCA…

… and are distributed to the host of the party each month, with each person hosting once

WeTrust ROSCA for Investment Clubs

A WeTrust Trusted Circle could be created by an investment club, with funds pooled together, and the group voting to decide who is the investment manager. Funds would be contributed on a regular basis, and the designated manager would decide how to allocate funds.

Funds are pooled in a WeTrust ROSCA…

… and are placed into an investment, with dividends from the investment paid out to members