-
Small Farmers Meet Big Data: How the data revolution could transform smallholder finance
The enormous gap between the supply and demand of formal credit for smallholder farmers has been well documented. Among the varied causes of this mismatch is the extreme lack of information on potential borrowers that’s available to lenders. Two recent data-focused innovations, however, could dramatically reduce these information challenges and the associated lending risks, which could help open up pools of capital for previously underserved populations.
- Categories
- Agriculture
-
Mapping the Path to Full Financial Inclusion
When attempting to solve a complex development challenge, we often jump from creating ambitious goals to making plans, without first identifying who we need to reach with our goals, where those people reside, and what challenge and opportunities they face. That’s why one of the underappreciated keys to meeting a development goal is to draw a map - and why maps provide the theme for this year's State of the Microcredit Summit Campaign Report: Mapping Pathways out of Poverty.
- Categories
- Uncategorized
-
Big Data isn’t Enough: We Need an ‘All of the Above’ Strategy to Drive Innovation in Financial Inclusion
Researchers love talking about their data and methods as a “toolbox,” and with the rise of big data, they’ve got a fancy new tool. However, the reason for carrying a toolbox is that there are very few projects where just one tool, no matter how powerful, is sufficient to get the job done. It’s necessary to recognize the weaknesses of big data as well as its strengths, and to think about what other types of data are needed to complement it.
- Categories
- Technology
-
NexThought Monday: Why Digital Wallets Stay Empty – and Six Ways Providers Can Help
In emerging economies throughout the world, people have flocked to mobile payment solutions, whether it’s to send money home, facilitate informal business transactions or pay bills. Yet most digital accounts are empty and serve mainly as a pass-through for such payments, which limits the transformational potential of mobile money. Here are several factors which make digital accounts an illogical store of value for people with low and uncertain incomes, and six ways providers can address this issue.
- Categories
- Uncategorized
-
Kiva’s New Fund Targets 1 Million Women Entrepreneurs – But How Much Impact Should We Expect?
Last week, the Inter-American Development Bank and the U.S. State Department joined microfinance pioneer Kiva to launch the Women’s Entrepreneurship Fund. The fund matches the contributions of lenders who respond to a woman entrepreneur’s loan request on Kiva’s online platform, and hopes to crowdfund loans for 1 million entrepreneurs. But in spite of the excitement around the announcement, questions about both Kiva’s approach and the broader microfinance model remain.
- Categories
- Investing
-
Five Reasons NGOs and Social Enterprises are Going Cashless
With over 250 services deployed in 89 countries worldwide, mobile money has enjoyed explosive growth among consumers in emerging markets. But digital payments are also transforming the work of development-focused organizations, many of which are shifting their bulk payment systems from cash to digital. This post explores the far-reaching organizational and financial benefits of this approach.
- Categories
- Uncategorized
-
The Hard Facts on ‘Soft Data’: Determining risk for loan applicants without credit scores is more than a numbers game
Research has shown that judging creditworthiness based on a single number can shortchange lenders as well as borrowers, and that a more comprehensive picture based on “soft information” as well as numbers can serve as a firmer basis for judging risk of default. This is good news for small borrowers – and it represents a promising new direction for those seeking to lend to them.
- Categories
- Uncategorized
-
Microfinance Clients Make Their Voices Heard: New research reveals their thoughts on how they’re treated by providers
The Smart Campaign has released the results from its Client Voices project, a four-country research investigation that directly asked clients about their experiences with financial providers and their thoughts on what constitutes good and bad treatment. The project features research from Georgia, Peru, Benin and Pakistan, based on face-to-face conversations with thousands of lower-income microfinance clients.
- Categories
- Uncategorized