For our latest round of the Fintech Forum, we’re combining several topics. At heart of this post is a guest blog from Gururag Kalanidhi of Habile Technologies looking at the Latest trends in Loan Origination. His post dovetails well with some of the research briefs that several of our GCI students did on digital credit.
This research and the guest blog post nicely complement a couple ongoing conversations we’re having across the community related to the product roadmap as a whole for Fineract CN and how our ecosystem is leveraging artificial intelligence, machine learning, and big data to make faster and better credit decisions while also delivering more impactful products and services.
To give your feedback on what you’d like to see in Fineract CN in general but also specifically as it relates to loan origination, please fill out this quick survey.
Digital credit is the next great frontier for financial inclusion as mobile money coupled with big data analytics is offering unprecedented access to credit.
This round of the Fintech Forum looks at three recent articles that herald the scale, potential, and impact of digital credit but caution against the risks it poses to the consumer as well as the risk of unfettered growth leading us to another credit crisis and looming bubble.
There are numerous opportunities to leverage open standards and open platforms to enable more tailored product innovation, greater access and control of data to consumers, as well as better transparency. Already, a number of innovative fintech companies like Mines.io and RuPie are heeding our motto of Build Apps, Not Infrastructure using Mifos X and Apache Fineract as the banking core to power their digital credit solutions.
Here at the Mifos Initiative we are going to begin posting a rundown of the most pressing topics and trends in fintech for financial inclusion providing you a place to follow the latest news and a forum to openly discuss what’s happening with other members of our open source community. This is the second article of this campaign. Expect to see these on our blog on a weekly basis.
Typically we’ll post snippets from several announcements or articles on a topic but this week, we’re lucky enough to have one of our partners, Habile Technologies, share a post from their blog on Self-Help Groups:
Self-help groups. Sound familiar? Perhaps you recognize the name, but do you truly understand what a self-help group is? Well, thanks to Shivasankari Bhuvaneswaran, now you can truly grasp the origination, concepts, and practices of a SHG.
Shivasankari dives into the topic of self-help groups and presents them in a detailed manner so the reader can realize their dramatic impact. Read the blog post here to learn how SHGs are playing a crucial role in “promoting gender-equality, economic independence, political participation, shared responsibility, and social development”.
Learn more about Habile Technologies by visiting their website at www.habiletechnologies.com. They’re always posting insightful information on financial inclusion and fintech.
FOR IMMEDIATE RELEASE
Seattle, WA ⎯ May 5, 2017 ⎯ The Mifos Initiative (Mifos.org) announced the launch of its Financial Inclusion 2.0 initiative, to continue its mission of bringing financial inclusion to the world’s poor and ending poverty, one line of code at a time.
“There has been great progress in financial inclusion, thanks to the work of the global Mifos community,” said Ed Cable, President/CEO of Mifos. “Now, to help the financial inclusion world move to digital and mobile, we have a powerful new initiative: Financial Inclusion 2.0.”
The Mifos Financial Inclusion 2.0 vision is the fast, low-cost mobile delivery of digital financial services. First published in Spring 2016, the vision statement calls for the creation of a digital financial services platform (DFSP) that can bring the world of financial inclusion to the next level.
Bryan Barnett has been one of the long-time advisors to the Mifos Initiative. We’re fortunate to have his insight and guidance in helping us shape how we can build open standards for innovation and open source digital financial services platforms to improve transparency, increase the effectiveness of regulation and ensure high consumer protection.
Recently he published an informative and eye-opening post to the Alliance for Financial Inclusion blog in his role as Banking Advisor to the U.S. Treasury, Office of Technical Assistance. His post, The Supervisory Challenges of Financial Inclusion, closely examines the growing challenges that regulators faces in both developing the rules and regulations to govern the authorization and operations of financial inclusion providers as well as supervising those institutions to ensure regulations are followed and risks are addressed.
Hello Mifos Community!
This past week, the Indonesia Fintech Festival and Conference 2016 took place in Tangerang, Banten, Indonesia. The conference is a joint event between the Financial Services Authority (OJK) and the Indonesian Chamber of Commerce and Industry (Kadin). Although the conference is based on fintech, there was a special focus on Financial Inclusion this year, as technology continues to transform Financial Inclusion.
The conference was two days and covered topics including “Improving Financial Inclusion Through Fintech”, “Accelerate Financial Sector With Fintech”, “Digital Currencies”, and many more.
Mifos had an exciting presence at the Indonesia Fintech Festival and Conference this year.
Steven Hodgson, Director of Kanopi, was present at the conference. Kanopi has been a partner with Mifos for a long time and is working on deploying the Mifos platform within Indonesia.
Mifos was also present through BTPN. BTPN is a financial institution in Indonesia that has been using Mifos since we were a project with the Grameen Foundation (roughly 5 years ago). They are still using Mifos and have around 2 million clients processing around 630,000 transactions per day.
In a country with significant mobile adoption and devotion to financial technology, there is a great opportunity to reach the unbanked. It’s amazing to see the Mifos community come together like it has in Indonesia, joining partners, financial institutions, and ordinary people together to promote Financial Inclusion for everybody.
-Jacob Kobzi, Business Development Intern
This past weekend, one of our premier early partners, SolDevelo (http://www.soldevelo.com), opened their Seattle office, expanding all the way from Poland. To celebrate the event, they were kind enough to invite some former members from the Grameen Foundation and the Mifos team to attend their opening celebration. I, Drew Fass, was lucky enough to be the Mifos guest of honor.
The Mifos Initiative began as an open source project under the Grameen Foundation. The Grameen Foundation was formed by Alex Counts, to further the mission of Grameen Bank and Muhammad Yunus, who won the Nobel Prize for his pioneering efforts in microfinance. His method of Grameen Joint Style Liability lending, in which all the women in a community were jointly responsible for everyone else paying off their loan, is what our first generation of Mifos software supported. SolDevelo was a key contributor in our shift out of the Grameen Foundation into our own non-profit. They were also pivotal players in the ongoing evolution of Mifos 2, our first generation of our open source platform. Since then, they’ve continued to work closely with the Grameen Foundation and other international development NGOs on the West Coast.
After arriving at their office, I was welcomed by a group of other SolDevelo supporters, including some key Mifos contributors from back when the project was under the tutelage of the Grameen Foundation. These members included Adam Monsen, Software Engineer and Kay Chau, Technical Program Manager. It was great to see that even 5 years from our departure from the Grameen Foundation that it’s original members are still able to connect over common ground.
All in all, it was a wonderful day at SolDevelo’s new headquarters. We would like to thank Krystian and Jakub for their hospitality and we wish them the best of luck in future endeavors.
Welcome to Seattle!
After the Mifos Innovation Team finished their week in Ecuador, Luisa had the opportunity to stay in Pindal to hold a couple more meetings. Pindal is a small town in Ecuador that borders Peru. Even though it is composed of just 6000 people, it produces 90% of the corn in Ecuador. Luisa was joined by the Assistant Director of Banco Desarrollo, Juan Carlos Aguirre, to experience first-hand the effect that the Electronic Money system would have on these rural areas.
Luisa and Juan first met with Pablo Saritama, the manager of Banco Desarrollo in Pindal. They discussed the various types of loans that would be implemented using Mifos, similar to the conversation that the team had at the Banco Desarrollo headquarters.
After the meeting with Banco Desarrollo, Luisa and Juan then met with the Corn Producers Association. They were able to answer questions and gain valuable insight from the corn producers regarding what kind of loans were needed and which loans work best. Luisa and Juan were able to explain Mifos and the Electronic Money System and everyone there seemed excited and willing to embrace this new system.
Jacob Kobzi, Business Development Intern
Friday, July 15th, 2016
The team met with the Dinero Electronico team in order to discuss regulations. Dinero Electronico saw eye-to-eye on the prospect of providing nano loans as a financial service. They also directed us to the right people to talk to next.
That was the last meeting for the team’s week in Ecuador. The Mifos Initiative is extremely excited for what the future holds and we are looking forward to making the vision of Financial Inclusion 2.0 a reality.
-Jacob Kobzi, Business Development Intern
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