The “san”: The Dominican tradition that persists in the face of digital banking
Although the financial system in the Dominican Republic has undergone a remarkable evolution, characterized by highly digitized multiple banking, robust savings and loan associations, and an expanding cooperative sector, the “san” remains an immovable piece of the local financial culture. This informal collective savings mechanism continues to be the preferred option for many Dominicans when it comes to achieving personal goals or acquiring valuable goods.
How does this cultural practice work?
The system is based on the periodic delivery of contributions by a group of people, whether among coworkers, family members, or friends. Participants receive the accumulated amount according to a previously established delivery order. Trust among the members is the fundamental pillar that supports this scheme, where the administrator usually receives a small commission as a benefit for their management.
It’s like a game, and the person running the ‘san’ is a very good friend of mine. I always play with small amounts for a few months. I use it for specific goals, from trips to buying home appliances.
Julia Núñez, recurring ‘san’ participant
Modalities and versatility
There are various ways to organize a “san” (rotating savings and credit association). Some operate with fixed amounts, while others, under a “cooperative mode” scheme, allow for variable contributions. A modality has even spread where, instead of cash, household items are delivered, becoming a way to acquire goods without resorting to traditional bank credit.
- Fixed amounts: Pre-established fees for all participants.
- Cooperative mode: Voluntary contributions with an agreed-upon commission for the administrator.
- Exchange of goods: Substitution of money for appliances or household items.
The authorities’ stance on informality
The Office of User Services and Protection (Prousuario), of the Superintendency of Banks, recognizes that the ‘san’ is a traditional savings tool. However, it warns about the inherent risks of operating outside the regulated financial system. Since there is no formal supervision, participants remain unprotected against potential defaults, payment conflicts, or mismanagement of funds.
From Alofoke Deportes, we remind you that, although this practice encourages discipline, the resources handled in a “san” (rotating savings and credit association) do not generate a credit history nor do they offer the security guarantees provided by formal banking, limiting the real financial inclusion of users.
Advances in the Dominican financial system
While the san culture persists, the banking sector continues its modernization process. With more than 2.6 million unique debtors in the system, financial institutions have committed to total digitalization. Initiatives such as neobanks, 100% digital accounts, and mass banking programs have allowed hundreds of thousands of Dominicans to access formal credit for the first time and financial products designed to strengthen their assets securely.
