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Johannesburg - Matilda Mnwana, a 72-year-old Soweto pensioner, built a house and put her six children through school, all without the help of a bank.
Like millions of black South Africans, Mnwana scrimped and saved her way through grinding poverty by joining a stokvel, the informal savings groups that have been part of South African life since the 19th Century.
"I was smart and used my money wisely and focused on my home," said Mnwana, who was even able to build on extra rooms that she now rents to lodgers.
The clubs grew out of black South African rural traditions and expanded under decades of apartheid that shut blacks out of the banking system.
With the end of apartheid 17 years ago, and with about R12bn now being collected by savings societies annually, banks such as Standard Bank, FirstRand and Absa are aggressively courting the stokvels and their estimated 8 million members.
With names such as the Monday Blues, Sweet Sunday, Harmony and Everlasting Women's Club stokvels are common in black townships, and particularly popular among women. Groups meet once a week or month, and a set amount is collected and dispersed to a member on a rotating basis.
No easy access
"Blacks did not have easy access to banks, to the extent that 10 years ago finding a branch in, say, Khayelitsha and other townships would have been unheard of," said Seth Maanda, head of client experience at First National Bank said.
First National Bank and its rivals are looking to funnel the billions of rand stuffed under mattresses into deposits.
The bank holds over R1bn in stokvel accounts and has helped customers formalise their savings groups.
Focusing on unbanked customers who previously did not have traditional bank accounts would help South African banks generate more revenue from fees, said Constantinos Kypreos, a senior analyst at Moody's.
"There is scope for banks to generate greater volume on transactions and get more customers. Obviously, if they broaden their customer scope they will get more customers into banking," Kypreos said in an interview with Reuters last month.
While analysts say the rate of household savings is low - about a quarter of the population is unemployed - such estimates do not take into account stokvels, said Coenraad Jonker, director of inclusive banking at Standard Bank.
"The issue is not that they don't save - it's that we don't see it in the bank. People invest in stokvels, put money under the bed and invest in their homes," he said.
Cattle auctions
The word stokvel comes from the Afrikaans for stock fairs, the rotating cattle auctions among settlers that gave farm labourers a chance to socialise.
As black workers moved to Johannesburg from rural areas to work in mines, where fatalities were high, they banded together to save for their funeral costs.
Saving for funerals remains a major component of the clubs.
"Funerals are a costly affair in black communities because of the number of people you have to accommodate," said Busi Tshabangu, a founding member of the Harmony stokvel that has been in existence since 1986.
Some join stokvels to save for big ticket items such as home appliances, furniture or even cars and homes. Members also team up to save money by buying their groceries in bulk.
While stokvels are run under strict rules, they are also guided by the black South African tradition of "ubuntu", or helping one's neighbours in a time of need.
Therefore unlike banks, stokvels tend to give members more leeway if they are going to be late with their monthly payments.
Small-scale entrepreneurs - such as shebeen owners - who are often unable to secure bank loans, can use stokvels savings to expand their businesses.
"If I for example run a shebeen and want an extra fridge, that lump sum can come in handy for me," said Andrew Lukhele, founder of the National Stokvels Association of South Africa.
"They promote self-help, self-sufficiency and self-reliance instead of waiting for other people to give you a loan and that instils discipline to save."
Like millions of black South Africans, Mnwana scrimped and saved her way through grinding poverty by joining a stokvel, the informal savings groups that have been part of South African life since the 19th Century.
"I was smart and used my money wisely and focused on my home," said Mnwana, who was even able to build on extra rooms that she now rents to lodgers.
The clubs grew out of black South African rural traditions and expanded under decades of apartheid that shut blacks out of the banking system.
With the end of apartheid 17 years ago, and with about R12bn now being collected by savings societies annually, banks such as Standard Bank, FirstRand and Absa are aggressively courting the stokvels and their estimated 8 million members.
With names such as the Monday Blues, Sweet Sunday, Harmony and Everlasting Women's Club stokvels are common in black townships, and particularly popular among women. Groups meet once a week or month, and a set amount is collected and dispersed to a member on a rotating basis.
No easy access
"Blacks did not have easy access to banks, to the extent that 10 years ago finding a branch in, say, Khayelitsha and other townships would have been unheard of," said Seth Maanda, head of client experience at First National Bank said.
First National Bank and its rivals are looking to funnel the billions of rand stuffed under mattresses into deposits.
The bank holds over R1bn in stokvel accounts and has helped customers formalise their savings groups.
Focusing on unbanked customers who previously did not have traditional bank accounts would help South African banks generate more revenue from fees, said Constantinos Kypreos, a senior analyst at Moody's.
"There is scope for banks to generate greater volume on transactions and get more customers. Obviously, if they broaden their customer scope they will get more customers into banking," Kypreos said in an interview with Reuters last month.
While analysts say the rate of household savings is low - about a quarter of the population is unemployed - such estimates do not take into account stokvels, said Coenraad Jonker, director of inclusive banking at Standard Bank.
"The issue is not that they don't save - it's that we don't see it in the bank. People invest in stokvels, put money under the bed and invest in their homes," he said.
Cattle auctions
The word stokvel comes from the Afrikaans for stock fairs, the rotating cattle auctions among settlers that gave farm labourers a chance to socialise.
As black workers moved to Johannesburg from rural areas to work in mines, where fatalities were high, they banded together to save for their funeral costs.
Saving for funerals remains a major component of the clubs.
"Funerals are a costly affair in black communities because of the number of people you have to accommodate," said Busi Tshabangu, a founding member of the Harmony stokvel that has been in existence since 1986.
Some join stokvels to save for big ticket items such as home appliances, furniture or even cars and homes. Members also team up to save money by buying their groceries in bulk.
While stokvels are run under strict rules, they are also guided by the black South African tradition of "ubuntu", or helping one's neighbours in a time of need.
Therefore unlike banks, stokvels tend to give members more leeway if they are going to be late with their monthly payments.
Small-scale entrepreneurs - such as shebeen owners - who are often unable to secure bank loans, can use stokvels savings to expand their businesses.
"If I for example run a shebeen and want an extra fridge, that lump sum can come in handy for me," said Andrew Lukhele, founder of the National Stokvels Association of South Africa.
"They promote self-help, self-sufficiency and self-reliance instead of waiting for other people to give you a loan and that instils discipline to save."
