FinTech at the frontier: Technology developments supporting financial inclusion in Niger

Sofie Blakstad and Latif Amars
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Sofie Blakstad: hiveonline, Applesbys Plads 7
Latif Amars: hiveonline, Norrsken House

Journal of Digital Banking, 2020, vol. 4, issue 4, 318-331

Abstract: Micro-, small- and medium-sized businesses struggle to access growth capital, particularly in the developing world. They are critical to economies everywhere, but banks and microfinance institutions (MFIs) struggle to reach rural businesses because of data challenges, large distances and low profits. FinTech solutions have transformed financial inclusion both for businesses and individuals across the developing world, and Africa, in particular, has been impacted by the development of mobile money, primarily in East Africa. CARE International introduced its first Village Savings and Loan Association (VSLA) in Niger in West Africa, and VSLAs are now the largest financial institution in Niger, transforming women’s economic empowerment, although with limited overall funds. Commercial ecosystems based on hubs are also a natural focus for community finance because of the role they already fill for primary producers. Financially excluded populations with very limited access to infrastructure tend to have very low literacy and limited exposure to technology; however many, especially women, are eager to engage with a connected society. Digitising VSLAs and commercial ecosystems to create secure records not only helps microbusinesses and local lenders, but can also create investment opportunities in global capital markets. Blockchain-based solutions can help to overcome barriers faced by mobile money providers. This paper shows how solutions deployed in frontier territories like Niger can bridge the gap between rural populations and the formal financial system to build more sustainable and secure communities.

Keywords: financial inclusion; blockchain; savings groups; last mile (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jdb000:y:2020:v:4:i:4:p:318-331

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