Security and Education for Prosperous Microfinancing in Developing Countries

Micro-financing is a financial tool that developing countries and their citizens often address. But due to the lack of education and awareness or financial instruments, chances of fruitful interaction between banks and unbanked are low. There are several important factors which determine whether a micro-financing institution will prosper and thus help the people in a developing country. One of the most important factors, which determine the improvement of microfinance in developing countries is the level of security and data protection, lenders and borrowers are offered. To provide their clients with a sufficient level of data and privacy protection, and to offer secure arrangements, platforms like AssetStream are based on blockchain. It allows them to perform transactions through smart contracts, which are protected against outside interference, and only the parties involved can access them. One of the primary purposes of microfinancing in developing countries is to help provide funding to underbanked and unbanked people. However, getting to trust them into putting their money in an online platform may not be that easy, as they most likely do not trust financial institutions, which is why they have remained without bank accounts.