Jesse Chor’s introduction to tanda collectives in Montreal’s Chinatown, an informal peer-to-peer savings and lending network, left a lasting impression on him. The practice, rooted in Mexican culture, has provided financial support to immigrants and others without access to traditional banking services for centuries.
Chor’s personal experience and reflections led him to develop Tanda, a platform aimed at providing financial resilience and community ties through collective savings. Tanda follows the Rotating Savings and Credit Association model and extends its services to small businesses, offering an innovative approach to retaining employees, reducing turnover, and minimizing burnout.
Customizing Services for Small Businesses
After departing from Yahoo, Chor founded Tanda, recognizing the need for financial assistance in handling unforeseen expenses, especially considering that a majority of Americans would struggle to manage an unexpected $400 expense. Tanda’s approach involves partnering with small business owners to offer the service as an employee benefit, thereby strengthening community ties within the workplace.
Tanda simplifies the traditional tanda model by harnessing technology to manage financial transactions. Business customers promote Tanda among their employees, who can access the product for free by scanning a QR code. Fixed increments of $100 to $2,500 are available for borrowing, with fees based on payout position within a circle of participants. Notably, tandas historically exhibit low default rates, attributed to the strong sense of community and social accountability.
While in the initial stages, Tanda has secured $4.5 million in seed capital from Initialized Capital and Arc, positioning the company to expand its operations and grow its team. Chor envisions Tanda evolving into a tool that fosters community and mutual trust within teams to enhance performance.