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Alternative Lending: Emerging Markets

Alternative Lending: Emerging Markets


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.

Overview

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.

Basic knowledge
Anyone with an Open mind to learn New things
Anyone who is Interested in learning what is Alternative Lending

Course Information

Anyone with an Open mind to learn New things
Anyone who is Interested in learning what is Alternative Lending

What will you learn
How do financial services differ in developed and emerging markets?

Features
Legacy Infrastructure
Formality vs. Informality
Returns on Investment
Practical advice on regulatory issues.

Blockchain and emerging markets.

Anyone with no experience or less than 3 years of experience with financial markets, investing and trading
Regardless of your background, this course is universally applicable for everyone

• Lifetime Access to Each Course
• Certificate on Completion of Course
• No Extra Charges Or Admin Fees
• Easy Access to Courses
• High Priority Support After Sales.
• Big Discounts on Individual Courses

Course Specifications

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Course duration is 24 hours.

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