Accounting and Finance : Finance | Learn All About Alternative Lending: Emerging Markets
Finance, Accounting and finance, Financial Investigator, Online Finance Courses, Online Accounting and Finance Course
Simpliv LLC
Summary
- Certificate of completion - Free
- Tutor is available to students
Overview
The $500 billion global remittance market has attracted many fintech startups. Migrant workers living abroad frequently need to send money back home to relatives, a need that was met for decades by giants like Western Union that charged exorbitant fees. BitPesa uses bitcoin to enable the speedy transfer of money to and from African countries, with payout options to bank or mobile money accounts.
Description
INTRODUCTION
The world’s next 1 billion middle class consumers are coming online in Africa. Mobile money is enabling Africa’s transformation to a digital economy through the delivery of affordable financial services. Africa has been a global leader in innovating payments technologies and has important lessons for fintech practitioners.
COURSE OVERVIEW
What does the emerging markets fintech opportunity look like? What is the potential here?
There has been a lot of hype around U.S. fintech, an industry now saturated with thousands of companies doing lending, insurance, payments, regulation, and wealth advisory. I believe the industry will begin to consolidate. VC investment into U.S. fintech has slowed down recently but is picking up in emerging markets. African, Latin American, and Asian markets are ripe with opportunity: the world’s 2.5 billion unbanked consumers are coming online. In Africa alone (from Irrational Innovations):
- Over 85% of people have a mobile phone
- Only 20% have access to financial services
- $4 trillion consumer and business spending
- $528 billion credit gap for Small and Medium Enterprises (SME’s)
Commercial banks, microfinance institutions (MFI’s), and traditional lenders have not yet adapted to digital finance. The mobile generation in developing countries is growing quickly and needs financial services now - smartphones and mobile money enable the low-cost delivery of financial products to this captive audience. Emerging markets fintech is the trillion dollar opportunity of this decade. According to the GSMA's 2017 State of the Industry Report on Mobile Money :
- 690 million registered mobile money accounts in emerging markets, a number that’s rapidly growing
- Mobile money transactions worldwide topped $1 billion per day
- Generating $2.4 billion in direct revenue
What does the emerging markets fintech landscape look like? Who are the major players?
- Emerging markets fintech landscape
- Vertical - Innovations
- Lending
- Insurance, Supply Chain, Pay As You Go
- Merchant Services
- Personal Finance/Savings
- Money Transfers
- Tools for Financial Institutions
Case Studies
Rainfall Insurance
WorldCover uses satellites and remote sensors to predict drought and underwrite smallholder farmers for rainfall insurance in Ghana. Subsistence farmers are sometimes more interested to protect their downside risk than to increase their upside. For example, getting a loan to buy twice the typical amount of seeds and fertilizer could potentially double a farmer’s crop yields for the season. But if there’s a drought, then the harvest won’t come through and the farmer’s family won’t be able to eat. In this scenario, having an insurance payout triggered by drought would be more useful as it ensures a baseline level of household consumption.
Credit Scoring
Lenddo uses up to 12,000 data points from a user’s smartphone to construct a behavioral profile indicating the willingness to repay a loan. Its credit scoring algorithm analyzes psychometric qualities like honesty, patience, and resilience and other characteristics like the size and diversity of one’s social network to determine the default risk of a loan. Lenddo recently partnered with Experian to expand its financial inclusion efforts in Indonesia and Vietnam. In the absence of traditional financial data like credit scores, Lenddo’s algorithm makes it possible to lend to previously unbanked populations.
Remittance
The $500 billion global remittance market has attracted many fintech startups. Migrant workers living abroad frequently need to send money back home to relatives, a need that was met for decades by giants like Western Union that charged exorbitant fees. BitPesa uses bitcoin to enable the speedy transfer of money to and from African countries, with payout options to bank or mobile money accounts.
Who is this course for?
- Anyone with an Open mind to learn New things
- Anyone who is Interested in learning what is Alternative Lending
Requirements
- Anyone with an Open mind to learn New things
- Anyone who is Interested in learning what is Alternative Lending
Career path
Finance
Questions and answers
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Certificates
Certificate of completion
Digital certificate - Included
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Legal information
This course is advertised on reed.co.uk by the Course Provider, whose terms and conditions apply. Purchases are made directly from the Course Provider, and as such, content and materials are supplied by the Course Provider directly. Reed is acting as agent and not reseller in relation to this course. Reed's only responsibility is to facilitate your payment for the course. It is your responsibility to review and agree to the Course Provider's terms and conditions and satisfy yourself as to the suitability of the course you intend to purchase. Reed will not have any responsibility for the content of the course and/or associated materials.