wealthyDid you know that about 2 billion adults around the world do not have access to a bank account? Yet, this population still needs to gain access to credit, store money safely, or send it to relatives across borders. It goes to show that banking the unbanked could prove very beneficial to both parties.
Now, with the integration of regional economies such as the ASEAN (Thailand, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Brunei, Myanmar, Cambodia, and Laos), there is new hope for the unbanked.
Why People Become Unbanked
Being, unbanked has more than its fair share of challenges. Besides the lack of access to credit, can you imagine not having any sort of insurance whatsoever – no health cover, car insurance, or even life insurance? Some people can’t even save money for their children’s tuition or anything else for that matter.
It makes one wonder; why would someone (who is not a drug dealer for instance) continue to live in that state? Here are some reasons;
- Between the cost of opening an account, the minimum balance, and the cost of maintaining it, some people simply can’t afford to be banked.
- Sometimes it is not economically viable to finance people who do not meet the minimum financial threshold.
- Geographic inaccessibility for those who live in regions where there are no banks nearby.
Why Banking the Unbanked has Long-Term Benefits
As mentioned before, the world’s unbanked population is an outstanding 2 billion people. Some of these individuals receive daily wages or government grants in cash. Others are either foreign workers or students.
A good percentage of these people have a credit history and would love to be financially included. It is a ready market for bankers, and the people who seize the opportunity will earn trust and a reputation that will last for ages to come.
- The integration of regional economies such as the ASEAN countries and the East African Community is increasing the market base and introducing more favorable laws. Investing in the unbanked in these regions is an opportunity to become part of the economy and the people’s daily lives. Both the unbanked and the banker will reap long-term benefits.
- Banking the unbanked will result in empowering previously excluded people financially. If the past is any indicator, people don’t like to jump from one financial institution to another (otherwise the large banks we know today wouldn’t be that big). Therefore, substantial investment in the unbanked will be met with loyalty, forming a long-term relationship.
AssetStream aiming to bank the unbanked
AssetStream is a P2P microfinance platform. It is leveraging blockchain technology to create sustainable microfnancing for growth and poverty reduction of the unbanked population.
The platform targets countries with the largest unbanked population, especially in places where the laws and user behavior is much more favorable – such as Thailand.
The AssetStream Platform has the following features:
- Credit rating and badge system
- Immutable credit data
- Transparency
- Flexible lending – you can either handpick the borrower or have the matching system do it.
- Lower transaction costs by cutting off middlemen and employing the existing infrastructure.
- Smart contracts
Grow your Money by Taking Part in Banking the Unbanked
Every expert in the fintech industry believes that the world’s unbanked population is ready for unlocking. AssetStream, through P2P financing, holds the key. You can become part of this financial revolution by investing in AST Tokens.
What do you think about investing in the unbanked?
Disclaimer: This is a guest article. The views, opinions and positions expressed within it are those of the author alone and do not represent those of Cryptopolitan. The accuracy, completeness and validity of any statements made within this article are not guaranteed. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.
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