According to the article Forbes business published in 2018, approximately 1.7 billion adults do not have access to a bank. Their unbanked state prevents them from getting access to financial tools like loans, credit cards, and remittances.
The reasons for an unbanked status vary but the main reasons are:
- Trust issues with banks
- Lack of credit history
- Lack of awareness and education
Because of these reasons, they turn to illegal lenders who lend them money at high-interest rates on a daily or weekly basis. The issue is not entirely in the system of banking and micro-financing; the problem also comes from the people, awareness, and education about micro-financing.
Why do we keep doing this?
Why do people still hide their money under mattresses? Even in the 21st century, when banks are available virtually everywhere?
León was a little girl when she first won an award for the best essay about the contest. She remembered her dad telling her to keep the award money ($100) because, with time, it will grow in value and soon, she would have more than what it was worth previously when she acquired it. Soon, she realized that she should have treated her first income from her favorite job with more respect, but little did she know about microfinancing and how to grow money with it.
Leon’s story represents a little part in every one of us, who don’t want to give their money to the banks. Lack of information, lack of awareness, lack of trust, everything results from lack of experience and education, and so, some of us still save our money under the mattress and hope for them to grow bigger.
What can we do to grow awareness?
We need to help people understand that they should let their guards down a little bit. They should introduce themselves to new possibilities and opportunities. And we can start doing this by learning more about microfinancing and blockchain and how these combined could help us access loans without the need for credit history.
Learn about Microfinancing
- Microfinancing could help improve your own financial situation.
- We need to adapt to changes as microfinancing has been around for decades.
- We need to follow the innovations because changes are happening everywhere.
Learn about blockchain
- Blockchain-based microfinancing that promises a better future for unbanked.
- This technology is about distributed ledgers that hold immutable data in a secure and encrypted way and ensures that transactions can never be altered.
Learn about the potential of this technology
- Blockchain can help solve a wide array of problems that have plagued the existing financial system.
- It helps secure digital assets and manages multicurrency transactions worldwide.
- Blockchain offers transparency, traceability, and security.
AssetStream combined them all in one platform
AssetStream created an ecosystem that can lower the number of people all around the world who lack access to financial tools. Learn more about the possibilities of blockchain-based micro-financing. Spread the awareness and support the advocacy of the AssetStream platform.
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