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A Solution to the Drama of Digital Finance
There are advantages to being a digital financial services provider, but also risks surrounding questions such as: Which business model should I choose? Should I develop my own digital platform or leverage someone else’s? Do I want to deploy my own network of agents? Will I partner with an MNO? That's why UNCDF’s MicroLead program, PHB Development and The MasterCard Foundation are working together to provide toolkits for FSPs.
- Categories
- Technology
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Women Struggle to Repay Loans Taken From Microfinance Institutions in India
The demonetisation of Rs. 1,000 and Rs. 500 notes has severely affected women who had borrowed loans from microfinance institutions. While some of them have resorted to mortgaging gold and sell household items to pay weekly instalments, there have been cases where some attempted suicide as they were unable to bear the burden of repaying the loans.
- Categories
- Uncategorized
- Region
- South Asia
- Tags
- lending, microfinance
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Viewpoint: Why Microfinance Is an Ugly Word in India’s Villages
Vidarbha, the cotton bowl of India - which has been periodically witnessing the spectre of suicide with farmers plagued by unmanageable debts taking their lives - is now back in news for almost similar reasons. This time, in the centre of the storm are microfinance institutions. Borrowers in four districts - Nagpur, Amravati Yavatmal and Wardha - have started defaulting on their loans, egged on by politicians.
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- Uncategorized
- Region
- South Asia
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Opportunity International Sells Share of Rwanda’s Largest Microfinance Bank to HOPE International
Opportunity International and its affiliates in Canada and Germany have completed a share purchase agreement to sell its 50 percent ownership of Urwego Opportunity Bank (“Urwego”) to HOPE International, a network of Christ-centered microenterprise development programs in 16 countries.
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- Uncategorized
- Region
- Sub-Saharan Africa
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Demonetisation: How to Get Cash-Stuck Microfinance Institutions Digitally Ready in India
The overnight demonetisation of R500 and R1,000 currency notes shook the entire Indian economy, for good or bad is yet uncertain. An estimated 85% of the value of currency has ceased to be a legal tender and the release of the new currency has been rationed for the next few months. Such a move from the government will most likely put a check on black money circulation in medium- to long-term, however, it will also impact businesses in the short-run given the fact that more than 90% of the consumer payments in India still happen in cash. The move is also expected to be a boon for digital financial services ecosystem in India. While the penetration of digital payments infrastructure has rapidly increased in the last two years, the value of consumer payments that happen through cards or other digital means in India is still far behind some of the other comparable economies. The point-of-sale terminals per 100,000 debits cards are lower in India compared to other BRIC nations (India-2; Russia-6.1; China-12.5; Brazil-14.8).
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- Technology
- Region
- South Asia
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Online Micro Credit on the Rise in India
Paving the way for migration of a large section of the population dependent on unofficial credit transactions into the formal sphere, the demonetisation move by the central government has boosted the prospects of online credit platforms.
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- Technology
- Region
- South Asia
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Cash transactions surge at Indian microfinance firms after note ban
Restrictions on cash withdrawals have had the perverse effect of boosting cash transactions in microfinance companies. Microlenders are hoarding cash received in repayments and then disbursing it to customers directly rather than depositing it into bank accounts, officials of at least three firms said.
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- Technology
- Region
- South Asia
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How Catalyst Fund Helped PayGo Energy Build a Foundation for Growth
As startups move past a proof of concept and start to scale, they require whole new sets of systems, operational processes and skills that will allow them to grow and expand. A well-thought-out backend system can help make the transition, but building it requires a team with the technical expertise to implement the right changes.
- Categories
- Finance, Technology
- Tags
- fintech, microfinance
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