Community-based Banking (5) Savings

Initially people would try to minimise their risk by quickly making a purchase to eliminate their credit balance. Once they learnt to trust the record-keepers, some might leave some of their credit with the record-keeper until they needed fresh goods later in the week. Over time, they might leave their positive balances longer and longer, as they match the timing of their purchases to their needs. If they trusted the record-keeper and their community, they might build up their credit balance over a couple of years, to save up for a big purchase.

Other members of the community could set up as loan brokers. They would offer those with positive balances a monthly interest rate, if they would lend it to someone with a more immediate need. The loan broker would need to establish the trustworthiness of the person borrowing. They might need to guarantee compensation, if the borrower defaulted.

Record-keepers would not become loan brokers, as they would lose their independence and people would stop trusting them. Trust would be so important to their business that they would need to avoid any activity that would put it at risk. A record keeper who lost trust would have lost their business, before they could recover their trust.