MicroMoney Employs Blockchain, Token Distribution to Serve Millions Of Asian Unbanked
Founded in 2015, MicroMoney is currently engaged in a $30 million token distribution campaign to speed up its expansion in the emerging markets. MicroMoney is not a bank – in fact, it exists because the people it serves are getting none or next to none service from traditional banks.
World Bank’s Global Financial Initiative estimates that over 2 billion adults, almost a third of Earth’s population, have never been banked in their lives. People fall off bank’s grid mostly when they lack credit history or records of transactions. In order to get transactions, one needs a bank account. Billions are trapped in this situation.
“MicroMoney’s primary objective is to provide lending services for the unbanked and underbanked ones, primarily by offering payday loans,» said Dzyatkovsky.
At least one million of unbanked people in Cambodia, Myanmar, Singapore, Sri-Lanka, and Thailand will get their very first loan over the next three years – and not from a bank but from a global blockchain-based lending services provider MicroMoney, if its CEO and co founder Anton Dzyatkovsky gets his way.
The secret of MicroMoney’s success? It’s all in the blockchain.
“In our markets, banks focus on lending to medium and large enterprises,” Dzyatkovsky said. “Our other competitors, microfinance companies, do reach out to individual borrowers but loan approvals can take weeks or even months,” said Sai Hnin Aug, co-founder and Operations Director, MicroMoney.
To change all that, MicroMoney relies on blockchain and mobile phone penetration.
Once installed, the app drives all the opt-in data from the phone through the neural network, which analyzes results and evaluates customers’ trustworthiness using Big Data algorythms. The lending decision is thus made not based on collateral and volumes of often meaningless paperwork but on customer’s opt-in public data, such as messaging, contacts, social accounts, app choices and music preferences. All in all, MicroMoney’s platform takes into account over 12,000 parameters, weighting them against each other. Once all parameters are factored in, an applicant gets a score, and if it’s a passing one, MicroMoney makes a deposit into customers’ e-wallets.
Using only the process above and nothing else, MicroMoney approves or declines a loan application within 15 minutes.
What happens next is MicroMoney’s secret sauce, simple and effective. Its customers’ data, stripped of identity for privacy, goes onto blockchain. Banks, credit, and insurance companies typically charge up to 15 percent of the loan budget to verify customers’ information and buy credit histories from credit bureaus in order to assess risks and define loan rates. Statistically, banks make 2-3 requests per person per year to the bureaus, with the price of each inquiry averaging between $1 and $10.
In comes MicroMoney with its blockchain-based, 100 percent verifiable database of reliable borrowers in each region. The database has specific categories including audience, risk level and costs related to each segment. MicroMoney’s platform offers banks and other financial institutions customers they can’t get anywhere else.
And it works. Financial organizations have begun purchasing the data slowly but surely plugging the unbanked and the underbanked into the global financial system.
Website: https://micromoney.io/
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