In today’s modern world, when continues to become more digitized every day, it may seem hard to believe that over two billion people around the world do not have access to any type of financial services. This unbanked population only use cash and do not have any credit history.
If we look at how the banks do their risk assessments on individuals, the unbanked are completely overlooked. Traditional financial institutions look at credit history, bank statements and any assets the individual has. What happens when people do not have this documentation on hand? Nothing. Transactions cannot be processed, and the unbanked population cannot go any further in their financial journey.
Enter the era of microfinance. By using the relational methodology, financial institutions aimed to build relationships with these individuals to understand their circumstances. As you can imagine, using a paper-based system for millions of people is not feasible in the long run. In addition, it is a slow-moving process involving large amounts of human resources.
Hope appears to lie in the ever-increasing popularity of the Internet, smartphones and blockchain technology. Even lower-income individuals have access to smartphones and, as with medium and high-income individuals, they incorporate it into their daily online lives.
MicroMoney aims to combine all of these factors, as well as the benefits of the crypto-economy, to offer an efficient and effective solution to the unbanked population.
The platform is an open-source credit and Big Data bureau that aims to connect new customers with existing financial services. Using complex algorithms, the platform will be able to quickly determine if an individual is creditworthy or not. Getting financial support will be easier than ever as these individuals will be vetted in as little as 15 minutes. In addition, increased use of the platform will result in these individuals obtaining higher credit ratings and lower interest rates.
This platform not only provides a financial solution to unbanked individuals. All of the credit histories will be stored on the blockchain, allowing businesses access to millions of new clients.
It’s not just unbanked individuals that can benefit from the platform. Micro, small and medium-sized enterprises will now be able to get that cash injection needed to grow their business.
Because most of the unbanked population is from countries with emerging economies, this will benefit the financial growth of each of those countries as well. This is also why MicroMoney is part of the Africa Blockchain Alliance project, which aims to promote blockchain development and subsequent usability on the continent.
Using this platform has far-reaching implications, not least of which is offering a large contribution to the global economy. By promoting financial inclusion for all, poverty will decrease and financial equality will become the norm and not just the goal.
More information about the platform and the crowdsale is available at – https://www.micromoney.io/https://www.micromoney.io/