LendLedger Review – A Connection Between Lenders and Digital Data
In many emerging markets it is difficult for sole proprietors and small businesses to acquire loans to expand their businesses. According to a study conducted by the World Bank, 42% of Indian adults borrowed money during the last year, but just 7% did it with traditional financial institutions and formal lenders.
This poses a strong risk to the development and growth of the small business sector. Some grocers, for example, are invisible to the traditional lending system, even when their shop is using different digital systems to collect financial data. The owner may pay for mobile data with a mobile wallet or use a Point-of-Sale (PoS) device to accept debit card transactions, among other things. All the information about the finance of the store and individual’s creditworthiness is there, but it is not easily accessible to give to financial institutions.
As a result, the grocery store owner may have a profitable business but it may not have access to funds from traditional and registered lenders. This creates a dependency on family, friends, or local lenders who charge exorbitant rates.
A new platform, built on Stellar Blockchain and called LendLedger, aims to help bridge the gap between small business owners in emerging markets who can’t get loans and traditional lending institutions. LendLedger’s approach seeks to eliminate these barriers and close the credit gap. Let’s take a closer look.
Mind the Gap
LendLedger’s platform aims to solve a multi-trillion-dollar gap in the lending market.
Blockchain technology appears to be a good fit for what ails this sector. It allows for the creation of a trust-based ecosystem where each party controls the transfer of their encrypted data.
The company believes that while centralized intermediaries can gain the trust of data providers and lenders, they are inherently inefficient and require the trust of all parties to function. Ultimately, this limits their scaling potential, and thus ability to impact the industry on a global level.
Their product is designed to give borrowers control over their data, and the option to share it for loan evaluation with lenders, while ensuring that sensitive info is kept private. The company uses open APIs and the blockchain to standardize how lenders and data providers collaborate with each other.
Through the platform, lenders can access the data they need and reach untapped market segments. Borrowers can also gain access to different lenders and paying competitive rates. In addition data-providers are able to monetize their data, which will be accessible to hundreds of potential lenders. In order to achieve accessibility, LendLedger ensures that borrowers and lenders never have to deal with cryptocurrency if they choose not to.
Gautam Ivatury, co-founder and CEO. Innovator in emerging market fintech since 2002. Founding or CXO roles at SKS Microfinance, Gates Foundation-funded CGAP Technology Program, Signal Point Partners, Jipange Kusave, MeraDoctor, and ArthImpact.
Manish Khera, co-founder. Pioneering banker in India for over 25 years. Founder or CEO at Fino PayTech, YTS (sold to Bharti Airtel), Airtel Payments Bank, and ArthImpact. World Economic Forum Young Global Leader.
The company behind LendLedger is Arth Labs, the arm in charge of technology and innovation of ArthImpact Finserve, an important Indian lending venture. ArthImpact collects data on potential borrowers building relationships with digital service providers.
In the past, the company was able to prove the opportunities that the MSME lending market opens. As of today, the company has disbursed over $7 million dollars to over 13,000 micro-enterprises across 400 different cities in India.
This open network will allow lenders to get access to qualified borrowers using LendLedger. LendLedger has been designed to enable and efficient, affordable and inclusive lending and financial market.
If you want to learn more about LendLedger, you can do it here:
Official Website: www.LendLedger.io
Email: [email protected]
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