How fintech platforms are reinventing the Alajo/Esusu model in Nigeria

Communities have come to trust alajo – or ajo or esusu – for generations. It is a rotating thrift system held together by personal trust rather than banks. Market traders, artisans and market women contribute small sums daily or weekly, and each member takes their turn to receive the lump sum.

This model serves two purposes: it forces disciplined saving and creates access to lump sums during emergencies or to fund business goals. Contribution and reputation reinforce each other: failure to honour one’s promise damages one’s social standing, so trust keeps the system strong.

Fintech startups now build on this cultural legacy. Rather than trying to replace alajo, they digitalise it.

Apps such as CircleFunds and Alajo digitise contributions, track group rotations and issue reminders, offering transparency via real-time transaction records; features missing in manual systems.

CircleFunds enables group creation, scheduling and contributions via app, automating what once required notebooks and ledger sheets.

Alajo’s platform makes daily savings accessible even to users without smartphones or regular internet by integrating USSD/SMS options and merchant networks to process contributions, preserving the simplicity of the original model.

Legacy banks recognise the value too. OneBank, Sterling Bank’s digital platform, launched a digital version of the Ajo scheme. Users can invite friends, contribute monthly and receive lump sums in rotation, essentially formalising esusu into its banking product.

Diamond Bank, before its Access Bank acquisition, used to have an esusu feature, but that was just for savings, which are locked for the period set by the user.

LibertyPay issues digital cards to ajo collectors, allowing them to process contributions via POS machines or USSD, increasing collection efficiency by over 150%, and targeting users in informal savings circles across the country.

Community members still prefer traditional alajo for convenience and familiarity. Many contribute via trusted collectors who visit shops or stalls, and withdraw funds on demand, avoiding bank queues and documentation requirements. But fintech companies enhance this tradition: reminders ensure punctuality, digital records prevent loss of information or fraud, and transparency builds trust without handwritten ledgers.

Fintech platforms also layer on financial products such as credit linked to savings history and savings-linked payment options, transforming basic savings rituals into broader financial solutions.

This blending maintains the communal essence while adding efficiency, accessibility and security. It offers a hybrid experience where users save within cultural norms and tap into organised, transparent tools that align with digital finance. Tech companies respect existing savings habits and reimagine them for modern needs.

Alajo (ajo/esusu) in Nigeria: Inclusion & transparency (2022–2025)

Community-based “ajo” or “esusu” savings circulations remain vital in Nigeria’s informal economy. About 58% of Nigeria’s GDP is informal, and 70% of market traders are women. A 2018 EFInA/CBN analysis finds ~14.6 million Nigerian adults (≈15%) under‑banked, many low‑income women, relying on rotating savings (Ajo/Esusu).

Fintech companies are now digitising these models to reach the unbanked. For example, LibertyPay introduced 150,000 digital Ajo cards in late 2023, aiming to serve small traders without smartphones.

Bankly’s app similarly “digitises” the local ajo, giving collectors mobile receipts and USSD access for secure deposits. Alajo App offers USSD and basic‑phone service so low‑income savers can deposit daily via agents, even without internet.

These platforms explicitly target women and traders, and a report notes that women prefer informal savings schemes for their flexibility and trust. In practice, digital channels (USSD banking, mobile agents, POS devices) now allow even rural or basic‑phone users to join savings circles without meeting in person.

Digital ajo systems also connect savers to formal finance. Alajo App, for example, plans to link savers to banking products. This means that users can access loans, insurance or pensions based on their savings history. These platforms enable credit scoring for previously “invisible” savers just by analysing contribution data.

Olajumoke Oduwole of Alajo once noted, “the under- and un-banked now have access to financial products…through data analysed from their transactions.”

Growth and usage of alajo apps (2022–2025):

These fintech companies are scaling rapidly. In 2023, LibertyPay’s AJO program reportedly saw ~150% growth in collection volumes after launch. It projects roughly ₦5 billion (~$5.5 M) in monthly group savings via its cards and POS network.

Still in 2023, Alajo App reports its users have already saved ₦373 million (≈US$443k) by April 2023. (The company aims to reach millions of savers by 2030)

Outside Nigeria, in South Africa, StokFella’s digital stokvel platform counts ~42,000+ members as of 2025. One StokFella community even raised over R15 million (~$834,810) via the app. These figures – a 3-year analysis – illustrate that digital thrift platforms have added tens of thousands of users and agents, transforming what were all‑cash schemes.

Kenyan youth also digitise traditional “chama” savings. Gen Z groups now pool money via mobile apps (e.g. using M-Pesa) instead of cash meetings. Apps like Chumz let friends set flexible savings goals (for travel, projects, etc.) and track contributions digitally.

The shift to digital means contributions are recorded centrally, eliminating the need to handle cash at group meetings.

Back in South Africa, digital stokvel apps bring transparency to communal savings. For example, StokFella’s mobile app enables each member to log in and view all group contributions and payouts. Members can even invest group savings in income-generating assets by connecting stokvels to a digital wallet and marketplace.

From apps to ecosystems

From here, we can project that fintech companies that digitise the alajo system can evolve into comprehensive financial ecosystems rather than simple savings platforms. Fintech firms now integrate insurance, credit, investment and micro‑pension offerings into their alajo-inspired platforms, anticipating next‑phase growth.

Services now allow on-lending to participants via the agent network, while others are partnering with insurers and microfinance banks to embed cover for health, life and business.

On the other hand, PalmPay offers insurance through third‑party partnerships, and over 1 million users are now enrolled in basic protection products on its platform. These developments demonstrate synergy between savings and credit services, also between app-based fintech and traditional alajo networks.

Read also: How Automated Payments Can Reshape Savings Beyond Local Cooperatives

Cross‑sector expansion appears abroad-ready. Entities like Alajo plan to scale operations into additional African countries while retaining the same agent‑first savings model.

Regulatory bodies such as the Central Bank of Nigeria have begun licensing digital‑only microfinance banks and super‑agents, thereby enabling these fintech networks to operate with greater scope and oversight.

Markets such as Lagos and Kano show significant adoption. Survey evidence suggests women traders and informal entrepreneurs dominate agent‑led savings groups, especially in micromarkets and peri‑urban areas.

Data from business case examples reveal that traders who had abandoned traditional alajo after misappropriation cases have regained confidence in digital alternatives offering escrowed accounts and real‑time monitoring. That indicates a shift in trust from human collectors to infrastructure‑backed fintech systems.

A move from isolated savings tools to full ecosystem platforms is underway. Integration of digital savings, automated credit scoring, micro‑pensions, and insurance creates potential for sustainable financial inclusion. Agent‑led models provide a human touch plus a network effect. Digital platforms add transparency, tracking, and regulatory compliance.

This convergence offers fintech startups an opportunity, and partnerships with traditional alajo groups can bring scale while maintaining community trust.

Regulators could support this by approving transparent escrow models and agent‑network frameworks. A pan‑African savings movement may emerge where digital alajo systems could export to diaspora groups and replicate across West African markets.

The next phase requires ecosystem thinking, not isolated apps. The future may lie not in reinventing thrift circles, but expanding them into digitally empowered, inclusive ecosystems serving entrepreneurs and communities.