“When there are three billion people surviving on $2 or less a day, reaching a few thousand is like aspirin in the face of raging cancer,” laments one concerned citizen when told of the advances being made in the field of microfinance.
That’s truly a frightening projection for the poor when people think of them as a herd clamoring for help, unable to do anything for themselves. Here’s the thing: Sometimes the smallest step in the right direction ends up being the biggest step of your life. We all need to step up to help the poor in our own sustainable way.
Enlightened individuals and leaders accept the principle that having a society with huge inequalities is not good for anyone including businesses. Governments, businesses, financial entrepreneurs, investors, and innovators are keen on creating a society that is based on the ideas of equality, solidarity, and dignity for each and every human being.
The beauty of blockchain is that it’s steadily making its way through communities and now seeking to engage 1.7 Billion unbanked productive individuals through making funds accessible to micro, small and medium enterprises.
Taking its microfinancing advocacy a notch higher and using blockchain technology for microfinancing, AssetStream will create a layer of trust and security between borrowers and lenders. It is a new paradigm of the finance business to connect with the individual lender while enabling a new source of finances for small enterprises to fuel global economic growth anywhere, anytime.
AssetStream will develop the ecosystem that delivers services not only to lenders and borrowers but also to agencies that choose to partner up with it. AssetStream funds will be financed from purchasing of AST tokens.
Microfinance is not a panacea for poverty. However, in concert with other interventions in areas such as health, education, infrastructure, market access, and a functioning and responsive government, microfinance can play an important supporting role in helping poor families around the world create more secure and rewarding lives for themselves and their communities.
AssetStream will create their own rating criteria and it will be divided into a personal loan and business loan. Lenders will sift through available “Loan Contracts” manually and can opt for the automatic system through AssetStream autonomous matching system.
Here’s the AssetStream Process
AssetStream will scrutinize all credit ratings for SMEs as the loan will comprise of a higher amount and follow strict procedures:
- The manual method for lending consists of a lender handpicking a loan application from the platform.
- In an automated lending process, the lender sets up a certain criterion for his ideal loan and the system will find projects that match and are in the fundraising phase.
- Examples of criteria are minimum credit rating of the borrower, minimum interest rate, maximum duration of the loan, maximum lend out the amount.
- Automated matching is not yet available. It is still under development
- The credit rating of small and medium enterprises will always be done manually but for individual borrowers, it will happen automatically.
- If individual borrowers are not satisfied with their credit rating or they can choose for a manual credit rating. This manual credit rating will have a fee in ASD token.
Investors can expect small businesses to continue to operate in such a way as to maximize the achievement of both financial and social returns. Social return on investment in microfinance helps reduce poverty and increase economic opportunities for the poor.
AssetStream recently signed an MOU with Max Property Group (MPG), an international property investment company. Max Crowdfund is a crowdfunding platform and together with AssetStream, projects on massive numbers of their communities to support direct integration of their blockchain platforms.
250+Million Members applaud as the English Learning platform English Forward entered into an MOU with AssetStream to access microfinance resources for its teachers and learners community.