NEL NETWORK, NEM BLOCKCHAIN, MICROFINANCE
New Economy Ledger is a community-based ecosystem of investors supporting microfinance institutions through blockchain technology.
Banking and financial services are quintessential to progress and development, however, despite efforts of providing mainstream financial services to communities in developing economies the recent findex reports present disappointing figures. With over 2 billion people - mostly in developing countries - with no access to any form of financial or banking services financially empowering rural and semi-urban communities in developing economies yet remains a challenge; not to mention the fact that such acute lack of financial services is an impediment to growth diminishing effective production.
Though microfinance models like that of the Gramin Bank (founded by Mohammad Yunus who was awarded a Nobel in Economics for his efforts) in Bangladesh have been instrumental in providing such services there is yet a long way to go. Integrating Blockchain technology with its innovative microfinance model, NEL, a Singapore based blockchain project is developing a unique mechanism to empower such communities by providing access to secure and better financial services by ensuring better interest rates for borrowers and also motivating lenders by safeguarding their interests.
The absence of any regulated or quality financial institution in communities allows unauthorized lending sharks to exploit those in need by levying exorbitantly high-interest rates. NEL identifies the problems facing such communities including the issues that limit the extent and reach of financial institutions in such communities.
Addressing these issues, the