Is blockchain the missing piece to financial inclusion?
As blockchain technologies advance, global organisations like the United Nations are exploring how blockchain can be used to meet the Sustainable Development Goals (SDG). As the Chief Operating Officer from Consensys Media stated, “Blockchain in particular is uniquely positioned to accelerate our impulses toward inclusivity, solving hunger and poverty, and creating sustainable jobs”.
Blockchain has the potential to boost inclusivity in many ways. One of the most promising applications is creating blockchain-powered tools that enables individual’s to access financial services. BanQu is a promising example, where they are using blockchain to accumulate an individual’s transaction history to build a credit history. About blockchain’s social impact, one of BanQu’s co-founders said in an interview, “An economic identity is one that values, documents and connects core components like land rights, harvest information, mobile money transactions, education, etc. This is the first step out of extreme poverty. This is the first step out of the stigma of being a UN Refugee for the next 17 year”.
But what are the future applications of blockchain toward building a financially inclusive economy, where access to financial services is universal? To gain insight about blockchain and financial institutions in remote, hard-to-reach communities that are best positioned to boost financial inclusion, IBS Intelligence interviewed financial institutions in Asia, a European non-profit organisation that supports African MFIs and Oradian.
From operational pain points for microfinance institutions in frontier markets to practical recommendations, read IBS Intelligence’s full report on the future of blockchain and its potential impact on financial inclusion.