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kenza_abdelhaq

Peer-to-Peer Lending: Best Websites of February 2021 - 0 views

  • If you can’t or don’t want to borrow money from a brick-and-mortar bank or a conventional online lender, peer-to-peer (P2P) lending is an option worth exploring. P2P lending works differently from the financing you may have received in the past. You are not borrowing from a financial institution but rather from an individual or group of individuals who are willing to loan money to qualified applicants. P2P lending websites connect borrowers directly to investors, as these lenders are called. Each website sets the rates and the terms (sometimes with investor input) and enables the transaction. P2P has only existed since 2005, but the crowd of competing sites is already considerable. While they all operate the same basic way, they vary quite a bit in their eligibility criteria, loan rates, amounts, and tenures, as well as their target clientele. To jump-start your search, we scoured the online P2P marketplace and came up with these top six platforms, depending on your exact financial situation.
    • nouhaila_zaki
       
      P2P lending could be a strategy pursued by the eligible fintech companies that we have this semester. P2P lending means that the company would not be borrowing money from a financial institution but rather from an individual or group of people that are willing to lend money to qualified applicants/organizations. This article enumerates the most prominent platforms for P2P lending.
  • Types of Loans Available Through Peer-to-Peer Lending P2P loans can be used for many of the same purposes as personal loans. Here are a few of the loan types you may find on popular P2P websites.  Personal LoansHome Improvement LoansAuto LoansStudent LoansMedical LoansBusiness Loans
    • kenza_abdelhaq
       
      If a company does not want to borrow from conventional banks or a fintech company want to offer this service, Peer-to-Peer lending is a great alternative.
nouhaila_zaki

Developing a P2P lending platform: stages, strategies and platform configurations | Eme... - 1 views

  • Our process model contributes an in-depth view of how P2P lending platforms should be established and nurtured to complement the existing studies in this rapidly growing research area. In addition, our study also hints at the strategies that can facilitate the various stages. Our model can potentially serve as the foundation for formulating guidelines for the managers of P2P lending platforms, so that they are able to optimize the development of their platforms and extend the benefits of P2P lending to a broader base of customers.
    • kenzabenessalah
       
      P2P lending would help EasyEquities expand their platform and optimize the development of their platforms for constant success.
  • Online Peer-to-Peer (P2P) lending platforms are becoming increasingly popular globally in recent years. Our knowledge of how to develop and manage the digital platforms that make P2P lending possible, however, is limited. Through an in-depth examination of the strategies deployed and actions taken across the various stages of development of Tuodao, one of the most successful online P2P lending platforms in China, the purpose of this study is to develop a process model of P2P Lending Platform Development to address this knowledge gap.
    • nouhaila_zaki
       
      This article is important because it investigates how to develop and manage digital platforms that make P2P platform successful through the consideration of Tuodao, one of the most successful online P2P lending platforms in China.
mehdi-ezzaoui

Recommending teams promotes prosocial lending in online microfinance | PNAS - 1 views

  • This paper reports the results of a large-scale field experiment designed to test the hypothesis that group membership can increase participation and prosocial lending for an online crowdlending community, Kiva. The experiment uses variations on a simple email manipulation to encourage Kiva members to join a lending team, testing which types of team recommendation emails are most likely to get members to join teams as well as the subsequent impact on lending. We find that emails do increase the likelihood that a lender joins a team, and that joining a team increases lending in a short window (1 wk) following our intervention. The impact on lending is large relative to median lender lifetime loans. We also find that lenders are more likely to join teams recommended based on location similarity rather than team status. Our results suggest team recommendation can be an effective behavioral mechanism to increase prosocial lending.
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    Lending Teams or Consistent Open or Closed Membership Groups formed and classified by reach. These credit teams present modes of multi- and sub-group credit collaboration based on tenuous identification principles. Groups differ by category, scale, reach and operation, thus impacting the participatory energy of crowd lending.
kenza_abdelhaq

ᐉ Peer-To-Peer Lending * How We has Contributed to P2P lending - 0 views

  • Despite the fact peer-to-peer lending has numerous benefits over the classic model, it also has certain potential drawbacks, such as lower level of security and personal guarantees as compared to bank loans. This is why only the most reputable P2P lending marketplaces with a positive track record are potentially able to boost the entire fintech industry.
    • kenza_abdelhaq
       
      Peer to peer lending has great potential with regard to the fintech industry. It could also be an alternative for farmers to have access to funding.
nourserghini

4 Apps You Can Use To Access Loans in Ghana - 0 views

  • Fido LoansFido money lending is our second money lending app here. Fido loans is a licensed institution, specialised in giving short term loans.Fido gives loans up to the sum of 200 cedis on first time applications.Based on how soon and how well someone pays for their loans, they can qualify for loans up to the sum of 600 cedis.You can download the Fido app from google play store and apply for your first ever Fido loan.Loans are usually paid into the mobile money accounts of applicants.Orbit Lending GhOrbit Lending is one of the fastest growing online loan companies in Ghana.
    • nourserghini
       
      This article is interesting because it states the most popular lending apps in Ghana which are competitors to Carbon, which are FidoLoans, Orbit Lending Gh and Sika Master.
mehdi-ezzaoui

FinTech startup Ocrolus partners with Kiva to launch a new lending program to offer zer... - 1 views

  • Kiva is the world’s first and largest crowdfunding platform for social good with a mission to connect people through lending to alleviate poverty. By lending as little as $25, anyone can help a borrower start or grow a business, go to school and realize their potential. Since 2005, Kiva and its growing global community of 1.7 million lenders have crowdfunded more than $1.1 billion in microloans to over 2.9 million entrepreneurs in 85 countries, with a 97 percent repayment rate.
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    FinTech startup Ocrolus and Kiva are unveiling a new lending scheme for zero-interest loans
mehdi-ezzaoui

Kiva.org: Crowd-Sourced Microfinance and Cooperation in Group Lending by Scott E. Hartl... - 1 views

  • he “Kiva.org: Crowd-Sourced Microfinance and Lending Team Cooperative Behavior” study focuses on evaluating the extent to which Solidarity as a design-lever impacts social behavior. Looking specifically at Kiva.org as a prominent community for peer-to-peer lending, this study seeks to evaluate the advent of “Lending Teams,” their subsequent impact on group lending behavior, and the extent to which group openness, size, and categorization substantively alters online cooperative behavior.
nourserghini

Online Lending Companies In Ghana For Loans - 0 views

  • Carbon (Formerly Paylater Ghana)Paylater or Carbon is another Ghanaian lending platform which operates online and is for all calibre of people. The company believes in giving out financial assistance to deserving individuals without the need for collateral or any physical contacts.All payments and application are done solely via Paylater’s mobile application which is currently available on Google Playstore. With Paylater, you can borrow money from 5 cedis and above depending on how you have been able to pay the previous loan you took and the availability of funds at the time. Also, there are no late payment fees with Pay later or Carbon. It’s just your loan amount plus interest.
    • nourserghini
       
      This article is interesting because it states that Carbon was previously called Paylater Ghana, also, because it explains how payments can only be made through the Paylater mobile application and that there are no late payment fees, only the loan plus interest.
mehdi-ezzaoui

Should online micro-lending be for profit or for philanthropy? DhanaX and Rang De [1] |... - 1 views

  • The basic model of the Kiva intermediary model, illustrated in Figure 1, is that small lenders lend to Kiva. Kiva lends to MFIs. These MFIs then lend to poor people. Thus the MFIs are using Kiva as a financing agency. Kiva is actually providing a service to small lenders who want to participate directly in the microfinance movement. In the Kiva model, there is no interest given by Kiva to the lender and no interest charged by Kiva to the MFI. However, the MFI charges normal interest rates to the poor borrower. Kiva is a not-forprofit.
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    Kiva as an example of the article if whether microlending should be profitable or not
mehdibella

FarmDrive Helps Unbanked Farmers in Kenya | The Borgen Project - 0 views

  • FarmDrive combats this lack of financial visibility by calculating alternative credit scores for Kenyan smallholder farmers. The startup requires users to input their expenses, revenue and yield via SMS and creates a platform for farmers to record business activity. FarmDrive then uses a complex algorithm to combine individual financial information with additional factors like the climate in the farmer’s region.
    • tahaemsd
       
      farmdrive eliminates some of the risk for banks by considering both the self reported financial history of farmers as well as exogenous variables that will affect their crop yields
  • By accruing farmer data, FarmDrive eliminates some of the risk for banks. FarmDrive has partnered with African financial firms who accept their alternative credit scores and determine appropriate loans for smallholder farmers. Lending institutions thus consider both the self-reported financial history of farmers as well as exogenous variables that will affect their crop yields.
    • mehdibella
       
      FarmDrive collects data from farmers via and combines it with satellite imaging, alternative data points to create detailed yield estimates and assess credit risk.
  • FarmDrive depends on aid organizations, like USAID, and private firms that operate in the agricultural industry. FarmDrive is expanding its data collection through new partnerships with Planet, a satellite company, and The Impact Lab, a data analytics group, to potentially incorporate climate information gathered via satellite imagery into its algorithm.
    • kenza_abdelhaq
       
      In addition to financial firms, FramDrive partners up with aid organizations, private firms operating in the agricultural industry, satellite company, and a data analytics group.
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  • There are 50 million smallholder farmers in Kenya, but less than 10 percent of this population has their economic needs fulfilled by traditional lenders. The agricultural sector makes up 32 percent of Africa’s GDP and employs 65 percent of its population, but less than 1 percent of bank lending goes to agriculture. Worldwide, there is an estimated $450 billion agricultural lending gap. African smallholder farmers face barriers to traditional lending because they are labeled high-risk borrowers by financial institutions. Traditional banks use credit scores and bank statements to determine a loan applicant’s riskiness. However, the average farmer in Africa cultivates fewer than five acres of land and owns no collateral or financial records.
    • aminej
       
      Unfortunaely for most farmers, they can't access credit from traditional banks because they are considered as high risk borrowers since they face many risks such as climate change, theft, lack of fertilizers. Now, through farmdrive everything changed with these new Fintechs who started giving more importance to farmers
mehdibella

Carbon reveals the appeal of fintech transparency in second profitable year, with $17mi... - 0 views

  • Lending through a pandemic COVID-19 has prevented them settling into Kenya, where there are no less than 50 digital lending platforms competing for an adult population that is over 80% financially included.  Reports of predatory lending have increased red tape in the East African country. A newly gazetted directive bars digital lenders from reporting defaulting borrowers below certain amounts to credit bureaus, among other rules.  It increases the time it will take for a new entrant like Carbon to comfortably express its various services. “We haven’t really had a chance to test the engine,” Dozie says, but they have given out enough loans to calibrate their algorithm. In Nigeria, they have reduced lending to shore up against the uncertainty caused by the pandemic, revising the repayment schedule for 9,016 loans. However, Dozie says they are currently at more than half the level achieved last year, in value and volume. Another profitable year ahead? Carbon’s products need overall improvement, in responding to customer complaints (see responses to this tweet) about deductions, and notification lags, among others. The pandemic’s impact on the Nigerian economy could have an effect on the company’s bottom line. Profit in the next report might as well be less impressive than what this year’s report contains. “It will be easier to beat [this year’s] numbers in naira terms, but we are all at the mercy of macroeconomics on the dollar terms,” Dozie says. He says they will report whatever happens, as part of a long-term pitch to customers who, he believes, will be impressed by an honest expression of financial strength. Otherwise, focus remains on leveraging other strategic moves from 2019, notably the acquisition of payments startup Amplify.  The latter’s intellectual property has gone into developing an SME platform, as well as in developing Carbon Express, a smartphone keypad button that can be used for instant transactions within any app. Carbon acquired Amplify particularly for this feature and their engineering. Maxwell Obi, one of Amplify’s two co-founders who joined Carbon as part of the deal, has left the company, but the others have been instrumental in building valuable aspects like an iOS app.
  • Another value-adding space is credit reporting. Carbon doesn’t produce the reports; they source from partner bureaus, and make them available to customers. 
    • samiatazi
       
      In 2019, Carbon purchased Amplify, a startup for payments. The latter has established a SME platform. Intellectual Property Carbon Express is a keypad button for any application to use for instant transactions. At present, they are more than half the level of value and volume reached last year. The effect of the pandemic on the economy in Nigeria could affect the bottom line of the business.
  • In an audited report published this week, Carbon, the Nigerian fintech company, declared that it made the naira equivalent of $312,905 in profit after tax in 2019. 
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  • Carbon reveals the appeal of fintech transparency in second profitable year, with $17million in revenue
  • Carbon offered 975,000 loans valued at $64.1million in 2019. The average loan offered to borrowers is $65.8 which, according to CEO Chijioke Dozie, is at the same level from 2018. A larger income tax bill ate into the company’s 2019 balance, reducing net profit by 23.5%
  • Carbon lent 76% more and, with $17million, accrued 70% more in revenue. But the real metric for progress last year was in the other lines of business feeding its base in Nigeria, and now being exported to Kenya where it launched last December. 
mehdibella

FarmDrive - 0 views

  • FarmDrive’s alternative credit risk assessment model is providing financial institutions with an agriculturally relevant and data-driven model to assess risk and develop loans that fit the needs of smallholder farmers. Not only will this solution unlock millions of dollars of previously risk-averse capital for smallholder farmers, it will improve the livelihoods of entire communities, thereby alleviating poverty, hunger, and inequalities.
    • sawsanenn
       
      FarmDrive overlaps our focus areas of agriculture and financial inclusion, empowering the world's most vulnerable farmers with the digital financial services they need to strengthen and improve their livelihoods. FarmDrive connected to various partners and expertise to help them scale, as its usage increases in other developing markets in sub-Saharan Africa.
  • Nearly 50 million smallholder farmers in Africa are struggling to support their families and communities through agri-business because less than 10% have their economic needs met by the financial sector. Without access to credit, they remain unable to purchase quality inputs, make productive investments, and improve their production and harvests.
    • sawsanenn
       
      While financial inclusion in the country has increased, many farmers remain excluded. Limited financing for farmers is due, in part, to a lack of available credible risk-assessment information for financial institutions.
  • FarmDrive’s alternative credit risk assessment model is providing financial institutions with an agriculturally relevant and data-driven model to assess risk and develop loans that fit the needs of smallholder farmers. Not only will this solution unlock millions of dollars of previously risk-averse capital for smallholder farmers, it will improve the livelihoods of entire communities, thereby alleviating poverty, hunger, and inequalities.
    • aminej
       
      FarmDrive helps small holder farmers get access to credit and funding in order to develop more and improve their capabilities and ressources. They also offer another service that consist of giving a score to each farmer according to his credits which is a good way to evaluate each one and to include more people that are unbanked.
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  • FarmDrive uses mobile phones, alternative data, and machine learning to close the critical data gap that prevents financial institutions from lending to creditworthy smallholder farmers.
  • $450 Billion Financing Gap Agriculture employs 65% of Africa’s population and makes up 32% of its GDP. However, less than 1% of bank lending in Africa goes to agriculture. In absence of accurate and cost-effective methods for assessing small-scale agricultural lending risk, financial institutions choose not to lend to smallholder farmers, thereby contributing to the $450 billion global agriculture financing gap.
    • mehdibella
       
      Not only will this solution unlock millions of dollars of previously risk-averse capital for smallholder farmers, it will improve the livelihoods of entire communities as the GDPR is maiinly based on agriculture these similar technologies help push it over the limit.
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    This excerpt is important because FarmDrive tries to gather all data needed to create loans that suit farmers situations.
nourserghini

Egyptian Fintech Landscape in 2020: A quick guide [Map] | The Fintech Times - 0 views

  • 2) The rise of lending in different modes. We’re seeing consumer finance products like ValU and Qasatly, credit scoring tools like Raseedi, and credit solutions for businesses like Capiter. ROSCAs (Rotating Savings And Credit Association) based models like MoneyFellows and Elgam3eya are also becoming popular.
    • nourserghini
       
      This article suggests the similar companies that exist in Egypt for lending that we can consider as competitors which areVaIU, Qasatly, Raseedi, Moneyfellows and Elgam3eya.
mehdi-ezzaoui

Lending Marketplace Lendio Provides $500,000 in Microloans to Women Owned Businesses in... - 1 views

  • Kiva is a non-profit lending platform well known for its microloan service targeted underserved markets globally. Lendio states that the program has now provided over $500,000 in microloans to business owners worldwide, 98% of whom are female. Lendio first launched the program in 2016. The company describes the program as part of its commitment to entrepreneurship and inclusivity. Lendio provides a microloan to a low-income entrepreneur for every new loan facilitated on its marketplace platform. This voluntary employee-contributed, employer-matched program reports a 94% participation rate among Lendio employees.
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    The importance of Kiva of empowering those business owners and knowing we're helping them keep their passion with offering microloans
mehdi-ezzaoui

Microfinance in online space: a visual analysis of kiva.org: Development in Practice: V... - 1 views

  • Microfinance practices were originally developed in offline contexts. Modern microfinance practices were based on development models for the financial and social empowerment of the poorest of poor in developing countries. Several of these practices drew from existing traditions of money lending within local communities that were reformed to be in sync with rural development and the empowerment of the underprivileged individual. In present ‘postmodern’ times, microfinance providers are using online tools in the hopes of broadening the reach and extending the advantages provided by such a model of micro-lending and micro-borrowing. In this article, we examine an online peer-to-peer lending and borrowing website, Kiva.org, which uses online social networking tools in microfinance. The study is thus a close look at the actual content of the website with a view to understanding the representational practices of online space through Internet mediated microfinance.
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    this article is interesting because its talks about online microfinance in general and talk about KIVA .
sawsanenn

Frontiers | FinTech: A New Hedge for a Financial Re-intermediation. Strategy and Risk P... - 0 views

  • FinTechs and the Value Chains in the Financial IndustryIt is beneficial to remember how things worked before and after FinTechs and TechFins or big techs in the financial industry.Banking models are shifting significantly from a pipeline, vertical, paradigm, to modular solutions that pave the way to new banking paradigms that entail higher levels of openness toward third parties and a growing number of modular services bundled together.Value is created in platforms through economies of scope in production and innovation (Gawer, 2014). In order for platforms to work, adoption and network effects are essential. Models can go to mere compliance with the prescriptions of openness of PSD2, to the inclusion of new services, the opening of the banking core and data, and the aggregation of those within a platform experience. In particular, we assist both to the evolution of a Bank-as-a-Platform model and a tech-platform-driven model supporting banking and financial intermediation, which both constitute a new interesting field of analysis.Since the wave of digital transformation started entering the financial industr
  • , banking-as-a-business has started moving from a product/service perspective to more contextual solutions where providers are customer needs-driven. This is because customer-driven companies outperform the shareholder-driven ones, and this requires an outside-in approach.Having said that, it is beneficial to remember that digital transformation implies four main categories of innovation (product, process, organizational and business model) (Omarini, 2019, p. 340); all of them require rediscovering that a new strategy paradigm exists. This regards the concept of co-creation, and because of this no single firm can unilaterally carry out a process of continuous experimentation, risk reduction, time compression, and minimizing investment while maximizing market impact. Co-creation requires access to resources from extended networks (suppliers, partners, and consumer communities).Under these new market conditions, FinTechs have become an important piece of a bigger puzzle, each one in its own area of business (payment, lending, etc.), while at the beg
  • inning most of them started as mono-business companies. Only a few of them may become leaders in the market. On the one hand, there are those that make their strategy become international, and on the other, there are FinTechs which enlarge their services-scopes. However, the majority of them will become part of ecosystems where the direction could swing from banks to tech companies or to FinTechs as well, able to manage the network by developing kinds of conglomerate-as-a-service.Another interesting point to outline regards this recent period where all of us have experienced lockdowns around the world, and some effects have also impacted FinTechs as well. The valuations of most unicorns have crashed overnight, while on the FinTechs side there are different situations. Some of them have experienced a dramatic reduction in their
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  • strategy development process, especially when the various units and individuals in the network must collectively execute that strategy. The key issue is this: balancing act between collaborating and competing is delicate and crucial” (Prahalad and Ramaswamy, 2004, p. 197).If co-creation is fundamental to the industry, this needs to leverage on a wider customer perspective that requires introducing the idea of developing ecosystems where the customer is truly free to move and choose the best deal in more competitive markets able to let consumers' ability to make informed decisions against any possible market concentrations among market providers.A business ecosystem (Moore, 1996) reflects the new paradigm of competition in a better way. Traditional management models aimed at gaining competitive advantage, such as vertical or horizontal integration, economies of scale and scope, are not effective anymore. The value of today's companies is determined by the size of its ecosystem (Tewari, 2014). Business ecosystems consist in crossovers of a variety of industries, of which companies cooperate and embrace open innovation to satisfy new customers' needs an
    • samiatazi
       
      Digital transformation implies four main categories of innovation: product, process, organizational and business model. FinTechs have become a significant piece of a greater riddle, every one in its own zone of business. The victors are those that have sufficient liquidity and money to purchase great innovation. This is particularly valid for installments that will be progressively contactless. Individuals costs and per-client commitment edge are key elements, and important markers. The more wellsprings of incomes an organization holds, the better it is for it to be a FinTech.
  • sons can be learnt from difficult times especially due to external factors such as the following:- People costs and per-customer contribution margin are key factors, and valuable indicators. They are valuable for incumbents too. When staff costs rise, then this becomes a burden if growth is not going to move on. Then, if we move on the per-customer contribution margin (revenue, minus variable costs including credit losses), then this makes a FinTech earn more money per bank account than the cost of running those bank accounts.- One more point has to do with the way a FinTech makes its revenues per customer, and net income is the figure to look out for here. This means that the more sources of revenues a company holds, the better it is for it. If we think of some of the best-known FinTechs, they gather their net income from interchange fees, ATM withdrawals, which can diminish during the pandemic, but gathering revenues from other sources such as lending, investing, or again from referring customers to third-party services, and earning commissions from these referrals.Under this oncoming market structure configuration, a focus on control and ownership of resources is giving way to the importance of accessing and leveraging resources through unique ways of collaboration. “The co-creation process also challenges the assumption that only the firm's aspirations matter. (…) Every participant in the experience network collaborates in value creation and competes in value extraction. This result in constant tension in the
  • evaluation, others were quite lucky and suffered less.There are many and different feelings on the way FinTechs will exit this situation, which as far as we understand has overall accelerated some strategic choices.First of all, there are many and different FinTechs in the market. What is critical is to look at the fundamentals of the business. All of them are about answering what society is going to look like in the future (attitudes, behaviors, habits, etc.), so that if we no longer need to go to retail stores anymore, why do we need some services based on this situation? This, again, underlines that banking is a people business (Omarini, 2015) and this requires a business to be resilient to become adaptive to consumer changes or moves into a different market where you can still apply the service because the society is not yet ready to shift somewhere else, which means the same business in different markets. Just think of the ongoing situation where the recent wave of people is rethinking and restructuring their finances, so that they have decided to switch rates to digital banks. In this scenario, the winners are those that have enough liquidity—or better still cash-rich—to buy good technology and invest in new directions, also taking the opportunity to use the pandemic to its advantage. This is especially true for payments that are going to be increasingly contactless. However, some more les
  • One more point has to do with the way a FinTech makes its revenues per customer, and net income is the figure to look out for here. This means that the more sources of revenues a company holds, the better it is for it. If we think of some of the best-known FinTechs, they gather their net income from interchange fees, ATM withdrawals, which can diminish during the pandemic, but gathering revenues from other sources such as lending, investing, or again from referring customers to third-party services, and earning commissions from these referrals.
    • hichamachir
       
      Pula can benefit so much from expanding its revenues streams. It lets the customers use the product or service in different ways which can't make them feel lazy to use a specific way.
  • The emergence of new technologies and players, along with a favorable regulatory framework (PSD2 Directive), is changing the banking industry. FinTechs and TechFins have allowed the introduction of new services and changed the way customers interact to satisfy their financial needs. The FinTech landscape is constantly evolving in the market. Different business value propositions are entering the financial services industry, moving from increasing the user's experience to developing a time to market framework for banks to innovate products, processes, and channels, increasing the cost efficiency and looking for a “partnering on order” to lighten the regulatory burdens for banks. The many businesses of banks are changing their value chains, and banks' business models should do the same accordingly. Strategists could no longer take their value chains as a given; choices have to be made on what needs to be protected and maintained, what abandoned and the new on coming to make banks evolve and become more resilient in doing their job. Banking is shifting significantly from a pipeline, vertical paradigm, to open banking business models where open innovation, modularity, and ecosystem-based bank's business model may become the ongoing mainstream and paradigm to follow and develop. Opportunities and threats for banks are many and new ones to re-gaining their role in the market throughout a re-intermediation process.
    • ghtazi
       
      FinTechs and TechFins have enabled new services to be launched and changed the way clients communicate to meet their financial needs. In the industry, the FinTech landscape is continuously changing.
  • They have brought to the traditional banking industry a wave of competition and broken pipeline value chains, unbundling them into different modules of products or services, which may be combined among themselves. These companies on the one hand and the BigTechs (Google, Facebook, Apple, Samsung, Alibaba, etc.) on the other have been forcing the industry to change, transform, and evolve in a set of new financial intermediation directions. Use of data and customer experience are both FinTechs' major assets and threats as well. On the one hand, they please the customers as individuals and introduce the paradigm of contextual banking. On the other, the two selling points are threatening both the incumbent players and regulators in different ways. For banks, it is even more urgent to react actively because their “no fee zone” is expanding, due to new regulations from the Consumer Financial Protection Bureaus (CFPB) and similar entities in different countries.
    • sawsanenn
       
      Since the digitalization wave entered the banking industry, financial institutions has begun to move from a product/service standpoint to more semantic alternatives where suppliers are pushed by customer needs. This is because the customer-driven firms outclass the investor ones, and this necessitates an outside strategy.
mehdibella

South African lending startup Jumo raises $12.5 million - 0 views

  • CEO of Jumo, Andrew Watkins-Ball, comments: “We have a proven business model, evidenced in the strategic partnerships we have built with forward-thinking banks, mobile money operators and partners like Uber."
  • Since launch in 2014, more than 10 million people have saved or borrowed on the Jumo platform, with nearly 70% of these being micro and small business owners across Africa and Asia. To date, the company has originated almost US$1 billion in loans and maintained savings growth of over 50% month-on-month on its platform, which manages over 45 million customer interactions per month.
  • Jumo currently has offices in Kenya, Uganda, Tanzania, Ghana, Zambia, Pakistan, United Kingdom, Singapore and South Africa. It set up its Asia Pacific headquarters in Singapore earlier in the year and has plans to enter several new Asian markets in 2019.
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  • South African lending startup Jumo raises $12.5 million
  • Since launch in 2014, more than 10 million people have saved or borrowed on the Jumo platform, with nearly 70% of these being micro and small business owners across Africa and Asia. To date, the company has originated almost US$1 billion in loans and maintained savings growth of over 50% month-on-month on its platform, which manages over 45 million customer interactions per month.
    • mehdibella
       
      JUMO secured another funding round of US$55 million to support market and product expansion.
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    The business model is one of the bases of a company success, and making a partnership with a brand name like Uber would increase the number of customers.
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    Through this article, we notice a lot of people have used the JUMO platform and they are happy with it. The company is ready to enter many new Asian markets since it has been successful in different countries.
mehdibella

Carbon , Nigerian fintech startup processed $240M payments transactions in 2020 - Techg... - 0 views

  • In 2012, two brothers, Chijioke Dozie and Ngozi Dozie, founded Carbon, a Nigerian digital bank start-up. Carbon began as a digital lending company, but now the company provides a variety of services, from payments to savings to investments. According to Dozie, “Our annual report will be released in the second quarter after our financial audit is complete, to gain customer trust, Chijioke Dozie, the CEO, told ProWellTech in 2019 that the company will make Carbon’s financials public.” If you note, before we published the 2019 fiscal year update, we released a year under review in January 2020.Gross profits, profit or loss before and after tax, liabilities and equity, total assets, etc. are included in Carbon’s annual report. Carbon’s year of analysis reveals processed payments, client base, disbursed loans, and investments made on the platform. The business with about 659,000 customers processed N96.54 billion (~$241.35 million) according to Carbon’s year of analysis for fiscal year 2020, which is up 89 percent compared to the same period a year earlier. N25.51 billion (~$63 million) was the disbursement volume for its lending arm, an improvement of 9.1 percent from the 2019 financial year. Investments worth N13.02 billion (~32.55 million) were made on the site, up by 365 percent from FY 2019.The factors that affected these numbers last year, according to the company, included the launch of an iOS app that pushed clients Acquisition, introducing its feature for low-income customers with USSD banking services; and a social chat feature to allow faster transactions. Besides that, Carbon obtained a microfinance bank license in an attempt to become a digital bank. The license implies, according to Dozie, that Carbon’s customers are given additional protection by the Nigerian Deposit Insurance Corporation through depositor insurance. The standard Carbon wallet is now a full-fledged bank account, Dozie says, and clients will transact on the platform like any bank would.
    • samiatazi
       
      Carbon's analysis year offers statistics on processed purchases, user base, loans paid out and network expenditures. The corporation has processed 96,54 billion (241,35 million dollars) last year with around 659,000 customers. N25.51 billion represented a 9.1 percent increase over the 2019 budgetary year for the disbursement of the lending arm. Carbon was invested in N13.02 billion ($32.55 million), up 365% from FY 2019.
  • Carbon , Nigerian fintech startup processed $240M payments transactions in 2020 - Techgist Africa | Africa Leading Tech
mehdibella

Kiva's Person-to-Person Claim Questioned | News | PND - 0 views

  • Kiva has promoted itself as a link between individual lenders in the developed world and individual borrowers in the developing world, allowing visitors to its Web site to learn about and lend money to people in poor nations seeking small loans for specific purposes.
  • the loans made by individual lenders through the Kiva site do not actually end up in the pockets of individual borrowers. Instead, those loans are aggregated and used to backstop microfinance institutions that have already paid out microloans to the borrowers featured on the site.
  • Kiva president Premal Shah said he could foresee a day when Kiva really did provide a direct person-to-person connection, once certain legal hurdles are cleared and as more individuals in the developing world began using mobile phones to access credit and make electronic payments. In the meantime, the organization has changed the wording on its homepage from "Kiva lets you lend to a specific entrepreneur, empowering them to lift themselves out of poverty" to "Kiva connects people through lending to alleviate poverty."
hindelquarrouti

South African fintech JUMO to expand in Asia with Goldman Sachs backing - 1 views

  • South Africa-based financial technology firm JUMO plans to expand in high-growth Asian markets after securing the backing of Goldman Sachs GS.N in an equity funding round, the company's chief executive said.
  • Since its founding in 2014, JUMO, which helps individuals and small businesses access savings and credit products through their mobile devices, has mainly focused on Africa where the adoption of mobile money has transformed the banking landscape.
  • JUMO uses behavioural data such as mobile telephone use to help financial services providers and mobile network operators assess lending risk and tailor financial products to those living in developing countries where credit information is scarce.
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  • Since its founding in 2014, JUMO, which helps individuals and small businesses access savings and credit products through their mobile devices, has mainly focused on Africa where the adoption of mobile money has transformed the banking landscape.
  • More than 9 million people have saved or borrowed using JUMO technology since it was launched in 2014. The platform has originated over $700 million in loans and manages over 25 million customer interactions per month, the company said.
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    African companies gain more fame and improve their brand names while expanding their businesses into other continents.
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    JUMO offers financial services to individuals who do not have access to these services. It also provides a reliable and inexpensive option for local unregulated lenders.
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    As it targets low-income people, Jumo has focused a lot on Africa, and it has provided its users with credits and saving options using mobile devices. This company is characterised by using behavioural date in order to help financial services providers to asses lending risks because credit information are usually minimal
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