What is microfinancing doing in our lives, and more importantly what’s up with the combination of blockchain and microfinancing industry?
Blockchain-based elections are on their way, numerous hospitals and data centers are already implementing blockchain technologies, and the microfinancing system is the next milestone to cover.
What do you think? Did Muhammad Yunus know that by introducing microfinancing to us, we’d take and improve it with innovative technologies like blockchain?
What’s the current financial state of the world?
According to the World Bank Global Financial Inclusion, there are more than 2 billion low-income working individuals that have never owned bank account or used any financial services. Initially, microfinancing was created to help the unbanked get their basic human right of obtaining credits and loans. But here we are, facing the problem of the century, still unable to grow the financial independence of the unbanked population.
With years of inexperience, people are afraid to address financial institutions and keep requesting cash, saving money under the pillows and borrowing it from third-party lenders, not realizing that by rooting for a cash-only economy they are:
- Dealing with high-interest rates
- Growing the chances of getting scammed by illegal lenders
- Higher risks of being robbed
What’s the role of blockchain in the development of microfinancing?
A rapidly increasing trend of using the internet along with mobile devices gives us a hope of revolutionizing the world of microfinancing by Blockchain technologies.
Having a transparent database of credit history, verifying borrower’s identity, giving legal protection to the lenders and paying less for the above-mentioned financial services are the mandatory characteristics, differentiating innovative banking solutions from the traditional ways of serving clients.
Blockchain + microfinancing = Less Poverty
High credit fees, low transparency and the wait for declining are what causes the unbanked to stay poor.
Isko is a 28-year-old young man from the Philippines who has a dream of becoming a graphic illustrator, but without proper tools, the only way he can paint is by hand and on paper. The lack of credit history of his entire family, who are receiving payments in cash, makes it even harder for him to obtain the essential tools, continuing the cycle of poverty.
But with platforms like AssetStream – blockchain-based project that can cross international borders and connect lenders to the borrowers, Isko can disregard the requirements of the traditional banking system and obtain a long-desired loan.
Crossing every border
Blockchain can disrupt the international borders that often hinder with our financial plans.
With blockchain crossing the borders, we can have:
- Loans for travelers with no credit history abroad
- Loans for international students and workers
Building a new credit history and identity
The AssetStream platform allows its users to build a new credit history along with the honest relationships between borrowers and lenders.
We do have online microfinancing platforms nowadays, but what it lacks are the trustworthiness and liability. AssetStream allows both lenders and borrowers to rank their profiles and build a reliable user-profile.
No more third party to mingle in our decisions
Isko couldn’t obtain a loan because of the middlemen standing between him and his dream. What can blockchain-based microfinancing do for him?
He can borrow money without tiring processes, high fees and fear of receiving a harsh ‘no’. The procedures are decentralized, P2P and direct.
There’s a place for you in microfinance too
Be one of the first ones to experience and learn about the blockchain in microfinancing. Whether it’s your business you want to grow, borrow some money for daily activities or are interested to learn about more investment opportunities, AssetStream can deliver further information and make you want to become a part of this amazing opportunity.
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