Covid19 — Impact and Wayforward for The Microfinance Industry

  1. Moratorium on the existing term loans
  2. Reduction in new loans processed
  3. Digitisation of the loan process

The Way forward for Microfinance Institutions

Technology as an Enabler

Using Blockchain Technology

Advantages of joining Cognitochain network

  • Reduce operational costs due to reduction in reconciliation issues and tapping into blockchain data to generate MIS reports.
  • Use borrowers credit score for making credit decisions, which helps with fully automated loan decisioning.
  • Institutions that are part of the consortium can share data securely and privately, which helps detect fraud.
  • Blockchain-based member identities can enable paperless loan agreements, thereby simplifying the loan management process.
  • Take advantage of machine learning algorithms to mine data on the blockchain to identify specific risk groups.
  • Credit rating established based on a member’s economic history will be a digital asset which can be used as collateral for accessing micro-loans
  • Credit score enables financial literacy and inculcates/encourage good financial behaviour.
  • Borrowers can utilise their digital identity along with credit score to access financial services from formal institutions.
  • Increased transparency and auditable financial metrics.
  • Enhanced supervision and regulatory oversight on risk-taking activities by MFIs.

About Cognitochain:



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