Microfinancing has been hailed as very successful in enabling the poor to access credit and other financial services. According to a World Bank report, up to 20% of the adult population in Africa and Asia get all their financial services through micro-financing entities.
Micro-financing could, however, do even better with technologies like blockchain. Here’s related news: Bank of Hodlers, renowned for building products/services that align with the ethos of decentralization, has recently signed a Collaboration Agreement (CA) with AssetStream, a P2P lending platform with a global reach to the unbanked and established partners.
The Collaboration Agreement was signed by Darshan Bathija, CEO of Bank of Hodlers and Thanin Piromward, of AssetStream. There is high hope that collaboration can have a tremendous impact on both their short-term and long-term growth. Without a doubt, the synergy between the two companies can ensure greater productivity through cross-promotion of the individual businesses to their growing databases.
AssetStream meets legal regulations and restrictions in countries it operates through partners and agents. AssetStream, together with its strategic partner ‘CreditOK’ which specializes in credit scoring, will conduct due diligence for both individual and business types of borrower. Badges and credit scoring are some of its distinctive features for improving the credit history of contributors.
Bank of Hodlers, on the other hand, offers a smooth user-experience platform which opens up opportunities to earn interest or borrow money at your discretion without having the need to liquidate crypto holdings. You can get low-interest loans against your cryptocurrencies as they will be treated as a separate asset class. All kinds of financial tools traditionally offered by banks are made available to hodlers without government regulation.
It’s a GIFT for those wishing for a better life…
Just a few days ago, I’ve read that the global microfinance market will witness steady growth over the forecast period (2017 to 2025) and this growth can be attributed to the rapid rise in the number of small and medium enterprises (SMEs). This projection will now materialize with the synergy of similar-minded communities of AssetStream and Bank of Hodlers.
Financial inclusion of the 2 Billion unbanked population will be facilitated by intersecting roadmaps – not parallel ones usually trekked by profit-oriented individuals. Developing markets will drive expansion, a trend expected to continue until (and perhaps beyond) 2022, by which point the IMF expects annual growth for this group to have reached 5%.
The collaboration will not only benefit both platform communities but also be of value to each other as they grow in the blockchain space. Both organizations have come to a mutual understanding to develop a direct integration between AssetSteam & Bank of Hodlers blockchain platforms to provide microfinance opportunities to both communities, not only as borrowers but as lenders.
The agreement also binds both the organizations to promote the collaborative efforts through their respective platform, community and outreach opportunities to ensure better participation to both programs. Led by individuals with complementary skills, the collaboration welds diverse talents that when combined create an explosion of creativity and productivity.
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