From Informal Financial Intermediaries to MicroFinTech Valuation

Roberto Moro-Visconti ()
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Roberto Moro-Visconti: Catholic University of the Sacred Heart
Authors registered in the RePEc Author Service: Roberto Moro Visconti

Chapter Chapter 11 in Startup Valuation, 2021, pp 281-295 from Springer

Abstract: Abstract This chapter goes beyond the traditional model of for-profit startups, showing how Microfinance Institutions—a good template for NGOs—can follow the typical startup patterns, with some adaptations. Microfinance is a renowned albeit controversial solution for giving financial access to the unbanked, even if micro-transactions increase costs, limiting outreach potential. The economic and financial sustainability of Microfinance Institutions (MFIs) is a prerequisite for widening a potentially unlimited client base. Automation decreases costs, expanding the outreach potential, and improving transparency and efficiency. Technological solutions range from branchless mobile banking to geolocalization of customers, digital/social networking for group lending, blockchain validation, big data, and artificial intelligence, up to “MicroFinTech”–FinTech applications adapted to microfinance.

Keywords: Financial inclusion; Sustainability; Scalability; Mobile banking; Social networking; Digital platforms; Big data; Blockchains (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-71608-0_11

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DOI: 10.1007/978-3-030-71608-0_11

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