Unbanking: Bridging the gap in financial inclusion

How do we implement fintech in developing countries?

The issue 

Informal borrowing is common in developing countries, with only 23 percent of adults using a formal bank account to borrow money. Compared to formal institutions, however, informal money lenders charge significantly higher interest rates. This disproportionately affects marginalized communities that are less able to access formal credit due to a lack of collateral, distance from financial institutions, and insufficient documentation. Unfortunately, the unbanked^[1] are also the most likely to be exploited due to lack of information.

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[1] The unbanked are more commonly “women, poorer, less educated, and living in rural areas.”