The Power of Community: How Tanda is Revolutionizing Financial Resilience
A Personal Connection to the Concept of Tandas
Jesse Chor’s journey with tandas began when he was a child, accompanying his grandfather and uncles to Montreal’s Chinatown. There, they would participate in their collective savings and lending network, known as a tanda. This informal peer-to-peer system has its roots in Mexican culture and has been around for centuries. Chor asked his grandfather why he used a tanda, and the response was that as an immigrant, he lacked access to traditional banking services, loans, and credit.
The Tanda Concept: A Community-Based Approach
The memories of those experiences stuck with Chor as he entered the working world. While at Yahoo, he was tasked with building a version of a tanda in 2018. However, what stood out to him was that he could have used something like that back when he was working at minimum-wage jobs. He realized that not only did he need it but also everyone he worked with at those places could have benefited from such a system.
"The idea is really about helping the community sustain each other, empower each other, and lift each other up while making money more accessible," Chor explained. This understanding of the importance of community ties in financial resilience would eventually become the foundation for his company, Tanda.
From Yahoo to Starting Tanda
Yahoo’s tanda product fizzled out after about six months, according to Chor. He left Yahoo in 2019 and went on to start two companies before finally realizing that Tanda was the right project for him. When he learned of the widely known statistic that a majority of Americans would struggle to handle an unexpected $400 expense, he knew what his third company needed to be.
The Tanda Platform: A Modern Approach to Collective Savings
Tanda is building a platform that provides financial resilience and community ties through collective savings. It uses the Rotating Savings and Credit Association (ROSCA) model but goes a step further by offering it as a service to small businesses as a way to retain employees, reduce turnover, and minimize burnout.
"We’re partnering with small business owners, and they’re offering it as a benefit to employees," Chor said. "There’s already a micro-culture there, so we’re able to link each other better."
How Tanda Works
In a traditional tanda, one person takes the lead in collecting the money and maintaining a ledger system for lending out that money. Chor’s approach is to leverage technology to take over that job. Business customers advertise Tanda with employees, who scan a QR code and get access to the product for free.
Rather than variable dollar amounts, they are fixed increments, and users can start at $100 and borrow up to $2,500. Tanda then charges fees based on payout position within a circle of people. For example, if someone is the first to receive their share, they might pay a lower fee compared to those who receive it later in the cycle.
The Benefits of Tandas
Tandas offer several benefits, including:
- Financial resilience: By pooling resources and sharing risks, individuals can better weather financial storms.
- Community building: Tandas foster a sense of community and cooperation among participants.
- Reduced debt: By spreading out expenses over time, individuals can reduce their reliance on high-interest loans or credit cards.
The Future of Tanda
Tanda is poised to revolutionize the way people approach financial resilience. With its modern take on collective savings and lending, it’s an innovative solution for individuals and businesses looking to build stronger financial foundations.
By leveraging technology and community ties, Tanda has the potential to make a significant impact in the world of finance. As Chor’s journey with tandas shows, there’s power in community, and Tanda is harnessing that power to create a brighter financial future.
Conclusion
Tanda is not just a company; it’s a movement towards greater financial resilience and community building. By putting people at the forefront of financial decision-making, Tanda is breaking down traditional barriers between individuals and institutions.
As the world becomes increasingly complex, Tanda offers a refreshing alternative to traditional banking systems. Its community-driven approach has the potential to create a more equitable and sustainable financial future for all.