Hiveonline is featured in CitiBank’s “Banking the Next Billion Digital Financial Inclusion in Action”

Hiveonline is featured in CitiBank’s “Banking the Next Billion Digital Financial Inclusion in Action” 1

The report released recently by Citi’s Global Perspectives & Solutions division, explores digital initiatives for financial inclusion targeted to the 1.7 billion people who remain without access to financial institutions. 

In the article titled, “Can Technology Drive Micro Finance?”, hiveonline founder and CEO, Sofie Blakstad, presents the case for driving formal financial inclusion through digitalising Village Savings and Loan Associations (VSLA) in the least developed countries with blockchain.

Sofie explains factors that have traditionally hindered formal lending to these community savings groups and describes the benefits for both the lenders and borrowers of the hiveonline solution which digitalises the VSLAs and further explains some of the things that have hindered these women from lending in the first place. Transportation is expensive, infrastructure is poor, and most of the time the women themselves avoid banking because fees, charges, and minimum account requirements and KYC. 

Building an alternative credit score through recording VSLA transactions on the blockchain establishes a creditworthiness for group members while the opportunity for group lending minimizes the risk to lenders. 

Banking the Next Billion Digital Financial Inclusion in Action” further explores the roles of mobile money, microcredit and microfinance in reaching the unbanked.

Download and read the full report here: https://www.citivelocity.com/citigps/banking-next-billion/