What is a Financial Cooperative?
A Financial Co-operative is a member based deposit taking financial co-operatives, that is owned and controlled by their members, who have a common bond and whose members choose to call themselves either a Credit Union, Savings and Credit Co-operative (SACCO), Financial Services Co-operative (FSC) and Financial Co-operative (FC).
The people-centred actions of CFIs, driven by volunteers and employees dedicated to serving their peers.
What is a Common Bond?
A common bond requirement its reason that combines or associates a collective of members either by:
- Consisting of persons who are employed by common employer(s) or who are employed within the same business district; or
- Have common membership in an association or organisation, including religious, social, co-operative, labour, sector or educational groups; or
- Reside within the same defined community, rural or urban district
What a Financial Cooperative is NOT!
A Financial Co-operative is NOT like a standard Financial Institution, which is owned and controlled by majority shareholders
A Financial Co-operative is NOT a profit driven institution, for the benefit of ONLY a Few Individuals
A Financial Co-operative is NOT a pyramid scheme!
A Financial Co-operative is NOT an institution that provides its services to clients irrespective of whether they are joined by a common bond or not
A Financial Co-operative is NOT an institution that promotes or encourages reckless lending practices in order to maximise on profit for its directors
How much can I contribute as a member?
You should as a member can contribute between R500 – R1 000 for member share per individual or entity.
You are also obligated as a member to contribute a minimum of R100 per month for your account, with no maximum limit amount.
Who can join Entbanc Financial Services?
Qualified members of all creative and cultural industry association or a member or employee of any of our component organizations and who is a resident of South Africa, creative professionals and workers, are eligible to apply for membership. Immediate family members are also eligible to join.
What happens to my member share and monthly contribution?
Until the completion of registration of EntBanc Financial Services, all member aggregate amounts (member shares and monthly contributions) shall be invested in a balanced equity fund to gain some capital and interest gains.
Post-registration completion of EntBanc Financial Services, we shall continue to invest the all member aggregate amounts for at least 6 months and there after provide credit and loans services to the value of 15% of the total member aggregate amount available to members at low-interest rates.
What happens if I don't want to be a member anymore?
You are able to redeem your member share amount for the full value minus the once of registration fee and a pro-rata increase on the value of your member share, provided you have no loan or credit amount outstanding.
Who are the administrator of the EntBanc Financial Services?
EntBanc Technologies administers EntBanc Financial Services. Entbanc Technologies is a financial, IT and business services support provider lead by financial, business and IT professionals with over 14 years’ experience. A financial cooperative is a not-for-profit entity governed by the Cooperative Act and Cooperative Banks Act. Members of the financial cooperative pay contributions every month and in return, shall receive financial services according to the rules of EntBanc Financial Services and financial cooperative best practice. Member contributions are paid directly into a pool of funds. Any money not used of financial services products and services, administration fees and other non-financial services expenditure remains in this pool. Overseen by a Board of Directors, this pool of funds belongs solely to the members. An administrator manages, co-manages or provides services to assist in the operations of a financial cooperative. It earns a fixed administration fee for each member, every month from a financial cooperative, in order to carry out a full range of administration services.
Who are the founders and promoter of EntBanc Financial Services?
The founders and promoter are a group of creative and culture sector entrepreneurs, professionals, organisational leaders and civil servants with the view of improving the wealth and financial literacy of all creative and cultural individuals and entities.