SINGAPORE – 23 Oct, 2017 – MicroMoney, the first blockchain credit bureau and a social lending services provider, announced new franchise partnership with Prosperous Capital & Credit Limited, a leading microfinance organization in Sri-Lanka. In under a month the lending company has opened a new office in Colombo to provide financial opportunities to the unbanked and underbanked population in the region. This latest expansion brings MicroMoney’s count of Southeast Asian operations to five countries including Cambodia, Myanmar, Thailand, Indonesia, and Sri-Lanka.
MicroMoney’s Sri Lankan franchise is an award-winning, sustainably-driven Micro and SME finance company. In 2015 Prosperous Capital & Credit Limited won the “Best New Micro and SME Provider” awards from The Global Banking and Finance Review and The International Finance Magazine. The lender is also the first microfinance structure in Sri Lanka to receive full ISO certification and a member of the United Nations Global Compact Programme.
The decision to move into the Sri Lankan market may prove to be one of lasting social benefits. Despite being a bank-based economy, the country has low banking penetration compared to its counterparts in the region. According to the Central Bank of Sri Lanka, the banking sector penetration, measured by M2 (Broad Money) to GDP ratio, stands at 40%. This is well below the regional peers – India (85%), Singapore (137%), Thailand (141%), and Malaysia (157%). Sri Lanka also has lower levels of savings and formal financial structures. With more than three quarters of the adult population unable to get a loan, many turn to loan sharks and other dubious lenders. Such lenders take advantage of vulnerable members of society with disastrous consequences for the borrowers and their families.
This creates an opportunity for financial companies, such as MicroMoney, to build a culture of savings amongst rural low-income earners through uplifting their livelihood. MicroMoney plans to use its unique approach, which leverages the remittance technology of Everex and allows all applicants to have a credit score intelligently assessed in under 15 minutes. All they have to do is install the MicroMoney app on smartphone, and their data is analyzed on a neural network. Using over ten thousand correlations in total, ranging from social media activity to musical preferences, the network calculates the odds of a loan amount being repaid with 95% accuracy. Once approved, customers can get their first small loan of $20. As their credit history improves, the loan amounts increase.
All credit scores are stored in the blockchain, and with the client’s consent can be shared with banks and other financial organizations, as well as with traditional credit bureaus. By making this information accessible to banks and other interested parties, MicroMoney brings new clients into the global financial world.
Having already established successful businesses in Asia, MicroMoney is on track to expand globally via a franchise model. “We have found a win-win strategy to build our worldwide presence and leverage our technical and business excellence. With MicroMoney now available to Sri-Lankan citizens, we will drive global inclusion for all people who previously lacked access to the financial system. They can take advantage of short-term loans to solve immediate challenges and plan ahead when their credit score becomes a door to more opportunities such as travel, entrepreneurship, and better quality of life,” said Anton Dzyatkovsky, MicroMoney co-founder. “With our ‘blockchain-based credit bureau’ approach, we are setting up a vast database of new clients with arguably lowest acquisition costs. Making both parties enjoy the benefits is the cornerstone of our business model.”
Prosperous Capital & Credit Limited’s managing director Mr. Madhawa Edussuriya is equally enthusiastic at the prospect of doing business in Sri Lanka. “There is huge potential for what we are doing. This is already being recognized abroad, and we have attracted two Japanese hedge fund investors,” he said. “As we work hard to give loans to tens of thousands of customers per year, MicroMoney has committed to assisting us with client inquiries at their multilingual call center in Bangkok. It’s a partnership built for success.”
Founded in 2015, MicroMoney International (micromoney.io) is a global fintech company offering financial services for the unbanked in the emerging markets, and access to the unbanked audience for banks, trade, and financial organizations. MicroMoney is a fast-growing company valued at $1.85 million, with over 85 employees in six international locations.
MicroMoney makes lending decisions using a proprietary, A.I. algorithms and neural networks-based mobile scoring system. MicroMoney’s lending process doesn’t require any collateral or paper-based documentation. MicroMoney collects customers’ opt-in mobile phone data to establish potential borrowers’ credit score. MicroMoney uses the score to generate credit profiles, stored with MicroMoney Blockchain Credit Bureau, which in turn shares this data with financial institutions worldwide.
For more information or to register your exchange please visit: https://micromoney.io/
Company Name: MicroMoney
Contact Person: Vladimir Grinevsky