Get a Formal Financial Identity using MicroMoney
Most people have possibly had the experience of going to a retail store and applying for their store credit just to have your application denied. You have a stable job and can prove your income which is not bad at all. You have enough savings in the bank for your needs, so you ask yourself: What’s going on? It turns out that having an eligible profile based on age, income, having a job, for example, is not going to take you very far when you need to apply for credit of any sort. The key is being able to prove you are indeed eligible. This is where your credit history serves as your own formal financial identity.
MicroMoney understands this challenge very well and is solving the difficulties that business owners, entrepreneurs, and people in general have when their financial habits are not properly recorded, resulting in their own credit history.
Let’s step back for a while and think about what has caused this situation. They key to achieving a better formal financial identity lies in understanding its current shortcomings:
Informal Databases
It is important to understand that unbanked people are not necessarily missing out entirely on accessing loans or other forms of alternative financing. They are still getting these but they are, usually, coming from very informal entities or even individuals. Take for example pay day cash loans from pawn shops. These are very disadvantageous for end-users because they carry huge fees that the shop keeps and in turn the end-user builds absolutely no credit history for their profile in order to unlock better financial options for them in the future. As a matter of fact, the proliferation of informal databases that do not communicate with each other and are not centralized at all can lead to financial records of individuals simply being lost at the moment they move out of town! This is a huge setback that is preventing entrepreneurs and business owners to reach their potentials.
MicroMoney is using blockchain as a powerful database tool to store credit behaviors and record information for all individuals who are interested in building a formal financial identity. With blockchain technology and the user interface for Micromoney’s platform, any lender will be able to do a quick evaluation and find out what an individual’s credit record looks like — allowing them to offer financial solutions ad-hoc to the end-user. This makes Micromoney a powerful ally for end-users and financial services companies to maximize their business relationship.
Lack of Standardized Scoring
FICO is a credit scoring service based in the United States. They provide scoring and predictive analytics to predict what’s likely to happen when a person uses their credit. This is a standard that is much needed in this industry. This is part of the financial awareness that entrepreneurs business owners, and individuals need. It’s just like asking someone to go through a test: before they can get a good score, they should study and prepare.
Our vision is for end-users to understand what comprises a standard credit score so they can manage it properly. The result is a proper standard credit score that truly reflects an individual’s financial behavior and capacity and leads to an accurate prediction of how this person can reach financial success. We are breaking down these barriers by using our platform to educate and raise financial awareness and bringing financially excluded people to the new global crypto economy.
Underdeveloped Regions
Statistics show that a large number of unbanked individuals are actually in the Asia-Pacific region, which, additionally, is now home to more than half of the world’s internet users, including social media users, and mobile social media users. If anything, what this trend proves is that although most Asian people may be unbanked, they have access to a digital era of services using their smartphones or online platforms for financial transactions. There is a clear opportunity in which these unbanked individuals can benefit from Micromoney’s platform and the fact that it will be available for mobile and internet users anywhere, provided there is an internet connection.
We are now completing daily milestones in efforts to improve the future for every individual that is currently unbanked.
MicroMoney as an open source credit & big data bureau using blockchain technology is here to serve the billions of unbanked people and to provide much needed solutions for the improvement of life, education, technology and innovation.