Across developing countries, finance remains a major challenge. This is reflected in high poverty rates and in low rates of economic development in those countries. Developing countries are also plagued with issues of financial inclusion, unstable currencies, limited access to affordable finance, and much more.
The emergence of technology has helped deliver solutions such as improved payment systems, mobile money, savings, and many more at scale. However, more needs to be done. Financial innovations need to move beyond the status quo to begin designing products that improve productivity and deliver on economic empowerment.
Developing countries need financial products that directly impact economic productivity, either by improving access to finance or by impacting other sectors that drive economic productivity.
Access to Finance
Credit access is important in driving a thriving economy because it boosts economic activities and drives. However, access to credit remains one of the highest challenges for businesses in developing countries. Beyond Microfinance, there is a need to deliver more robust credit facilities to nano, micro, and small businesses, who need them.
In-sector Financing
Innovation is also required within sectors that indirectly drive economic productivity, such as the energy sector. Financial products or credit facilities that provide access to power would significantly improve the productivity of businesses in these countries. By re-engineering power as a financial product, more businesses can tap into it to drive profitability.
