Microfinancing didn’t begin as a traditional financial product. As ecommerce took off in the 90s, merchants and consumers needed a way to initiate micro transactions in a two-sided model, leading to innovative microfinancing solutions.
With this disruption, the provision of small, impactful loans became cost efficient for fintechs. Smartphones increased reach and reduced cost, allowing microfinance to reach everyone, everywhere. But what can fintechs do now to harness the next wave of tech innovation and reduce barriers for the financially excluded?
Frederic Nze, CEO and Co-founder of FinTech microlender Oakam, and Guy Shone, CEO of Explain the Market & Business Presenter for Euronews, discuss the evolution of microfinancing and how technology is the key to financial inclusion in underserved markets.