HashCash partners Nigerian fin-tech startups to tackle financial exclusion crisis

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New York, Sep. 04, 2018 — Conventionally one is prone to associate blockchain exclusively to cryptocurrency, often bypassing the technology’s versatility to solve a wider range of financial problems. Take for example its increasing demand by governments and commercial organizations to resolve the contention of financial exclusion, and the resulting hit the national economy takes for not tapping into a large chunk of a bankable population, especially in rural areas.

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The possibilities of blockchain to solve this problem are immense and several software solutions companies have taken the initiative to visit regions plagued by this problem to ideate remedies to take the bull by its horns. A team from Hashcash- a U.S. based software development company – has surveyed the remote regions of Africa’s largest economy, Nigeria, which paradoxically remains significantly isolated from the rest of the world’s economic machinery. This can be attributed to mainly two reasons – first, Nigeria still depends on buses as a primary means of transferring cash money to its outskirts, an option that makes the asset highly susceptible to being looted en route to its destination; second, a large percentage of the country’s 150 million strong population is devoid of bank accounts.

Oddly, even in the absence of easy access to technology, like desktops, and traditional bank branches, there is a wide dominance of mobile phones. This device is all it would take for blockchain based banking to overturn the current economic exclusion crisis on its head.

Instafin – Oradian’s innovative core-banking platform – is a popular choice of microfinance institutions all over Nigeria, and aims at making banking and wealth management accessible mainly to women in the outskirts. The advantages of replacing the traditional banking model by one powered by blockchain technology are many. Take for example, the use of wallet based micropayment options would let individuals in inaccessible regions, and those who do not have bank accounts, to transfer money seamlessly from one wallet to another, regardless of any geographic divide.

A blockchain based banking infrastructure is infinitely more secure – a key concern in regions facing political unrest or other civil disruptions. The transparency it provides allows for improved traceability of funds moving across the network, and ensures better accountability of where finances are dispersed – a feature sought by NGOs that actively participate in uplifting a demography most likely to be excluded from the larger economy.

In recent times, a litany of civil strife has plagued South Asia, Southeast Asia, and some African and Middle Eastern nations, affecting people not only at an individual level but also the businesses and enterprises they run, their health care. A survey conducted in 2016 by McKinsey Global Institute revealed 200 million businesses and two billion individuals in emerging economies do not have access to basic banking services such as savings and credit.

In a bid to tackle this crisis the United Nations, in collaboration with governments, civil societies, and fintech companies have drawn up the Sustainable Development Agenda to be achieved by 2030, and this includes the financial inclusion of the poor, women, rural societies, and businesses.

Since it would be a herculean task requiring tremendous effort and investment to penetrate such regions with traditional financial business models, banks are increasingly adopting digital finance, particularly the immutable public ledger for its many advantages. This includes low operational cost and investment for added infrastructure, circumventing the need for extensive use of cash, traditional bank branches, related paper documents, middlemen and lengthy processing time.

The digital financial services have an immense potential in a market where the primary goal is to enable one and all to participate in the finance industry especially in emerging economies, possibly giving their GDP an enormous boost.

Opting for blockchain powered banking services would have an immediate effect on productivity, investment, support of women’s and marginalized communities’ empowerment, and overall transform the economic prospects of unbanked people in any part of the world.

Peter Okafor
Peter Okaforhttp://Naija247news.com
Peter Okafor Financial Journalist | Editor | Contributor Overview: Peter Okafor is a seasoned Financial Journalist, astute Editor, and valued Contributor at Naija247news Media Group. With an unwavering passion for dissecting complex financial landscapes, Peter has become a trusted name in delivering incisive and insightful coverage of economic events, market trends, and corporate dynamics. Professional Journey Peter's journey in financial journalism has been marked by a commitment to excellence. Joining the ranks of Naija247news, he has consistently demonstrated a keen understanding of the intricate interplay between finance and the global socio-economic fabric. Expertise: Specializing in financial markets, economic analyses, and business developments, Peter Okafor has honed his expertise over the years. His ability to unravel intricate financial narratives and present them in a comprehensible manner sets him apart in the world of financial journalism. Contributions As an Editor and Contributor, Peter has played a pivotal role in shaping the narrative of Naija247news. His contributions extend to thought-provoking articles, in-depth market analyses, and coverage of key events that impact the financial landscape. Educational Background: Peter holds a degree in Journalism, complemented by specialized courses in Finance and Business Reporting. His educational foundation has provided him with the tools to navigate the intricate world of financial journalism. Innovation and Adaptability: In an era of evolving media landscapes, Peter Okafor exemplifies innovation and adaptability. Leveraging digital platforms and emerging technologies, he ensures that financial insights reach a diverse audience, fostering financial literacy and awareness. Awards and Recognition: Peter's commitment to journalistic excellence has not gone unnoticed. He has been the recipient of several awards, recognizing his outstanding contributions to the field of financial journalism. Vision for the Future: Looking ahead, Peter Okafor envisions a future where financial journalism continues to empower individuals, shape economic policies, and drive positive change. His dedication to staying at the forefront of financial news underscores his commitment to this vision. Connect with Peter Okafor: - LinkedIn: [Peter Okafor](#) - Twitter: [@PeterOkafor_N247](#) In the dynamic realm of financial journalism, Peter Okafor stands as a stalwart, combining experience, expertise, and a forward-looking vision to illuminate the path of financial understanding for a global audience.

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