The Origins of ROSCA: The World’s Oldest Financial System

Before there were banks, before fintech apps and credit cards — there were people helping people. One of the oldest and most widespread examples of this is the ROSCA, short for Rotating Savings and Credit Association. Known under different names around the world, the ROSCA is one of humanity’s earliest and most enduring financial tools — and it’s still thriving today.

But where did it come from? And why is it still relevant?

A Global Tradition With Local Names

ROSCA isn’t a name you’ll often hear in everyday conversation, but you’ll definitely recognize the practice if you’ve ever been part of a group that contributes money regularly and takes turns receiving the lump sum. Around the world, ROSCAs go by many names:

• Sòl in Haiti

• Susu in Ghana and the Caribbean

• Tontine in West and Central Africa and parts of France

• Hui in China

• Pasanaku in Bolivia

• Pardna in Jamaica

• Chit Fund in India

• Gam’eya in Egypt

Though the names and details differ, the essence is the same: community-driven saving and lending without banks.

Origins Rooted in Trust and Necessity

ROSCA-like systems have existed for centuries, possibly millennia, long before modern financial institutions emerged. In many parts of the world, especially where access to banks was limited or nonexistent, communities created their own systems based on trust, accountability, and mutual support.

• In Africa, these circles were used to pay school fees, invest in small businesses, or cover weddings and funerals.

• In Asia, they were crucial for market vendors and traders to pool resources.

• In the Caribbean and Latin America, they became a lifeline for immigrants and informal workers.

• In Haiti, the sòl has long been a staple of economic survival — especially for women-led households and small merchants.

What’s powerful is that these systems were never imported or imposed. They were born from cultural values like solidarity, discipline, and collective growth.

Why ROSCAs Work

Despite having no contracts, interest rates, or credit checks, ROSCAs have stood the test of time because they’re:

• Simple – No paperwork, no fees.

• Flexible – Adapted to local culture and income cycles.

• Trust-based – Built on reputation and accountability.

• Empowering – Help people achieve goals without formal credit.

  
  

In many cases, ROSCAs do more than provide money — they build community and foster financial habits that formal systems often overlook.

The Digital Future of a Timeless System

Today, innovators like PAON Bleu with BOUSOL are reimagining the ROSCA for the digital age — using blockchain technology, mobile wallets, and financial education to scale what has always worked.

By digitizing systems like the sòl, platforms like BOUSOL are:

• Making participation more secure and transparent

• Allowing diaspora members to join from anywhere in the world

• Helping underserved users build a digital financial identity

• Bridging traditional values with modern technology

The story of ROSCA is the story of people taking care of each other. It’s a quiet but powerful reminder that some of the most effective financial tools aren’t invented in boardrooms — they’re built in living rooms, market stalls, and church courtyards.

As we look toward inclusive financial futures, maybe we’re not building something new — we’re honoring something ancient and making it better.

BOUSOL – Lajan w, san limit.

Learn more about how we’re digitizing sòl for the next generation at bousolapp.com