← Back to Community
Education

ROSCA vs Traditional Banking: The Key Differences

2026-04-25 · Sohana Community
📚
Rotating Savings and Credit Associations (ROSCAs) are community-based savings groups that predate formal banking by centuries. Unlike banks that charge interest and require credit histories, ROSCAs operate on social trust and mutual accountability. SOHANA brings the best of both worlds by digitising this trusted system while adding credit scoring, dispute resolution, and formal financial products.