Lending Models and Microfinance Institutions

by Paul Jones Introduction This paper will compare and contrast the group lending and individual lending models used by Microfinance Institutions, which first emerged in the later decades of the 20th century, and discuss the situations where one model may be preferable to the other. The academic literature on this topic is growing, and there are many subtleties to consider when comparing the pros and cons of group versus individual lending. An in-depth analysis of this complex topic is well beyond the scope of this essay. Rather, a high level synopsis will be presented that attempts to compress the salient points. The concept of crowdfunding is also discussed, and how it relates to the group and individual lending models frequently

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Financial Access and the Special Role of Internet Connectivity in the Developing World

Introduction This essay will examine the accessibility of financial and banking services in both the developed and developing world, and the enabling role played by digital technologies such as the Internet, especially in less developed countries. First, a pre-Internet, bird’s-eye view of the diffusion of banking and financial services in more developed countries is reviewed to provide background. Second, important prerequisites for improving the destiny of the unbanked and under-banked in LDCs are enumerated. Third, the modern Internet as a leapfrog technology, with an expanding role as an essential platform for financial access in emerging markets, is explored in light of these prerequisites. And lastly, a conclusion briefly summarizes the ideas advanced in this paper. Financial Services Pre-Internet in the

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Case Study: A Rural Farmer in a Less Developed Country

Background and Assumptions The premise of this paper is that I am a farmer living in a rural region of a LDC; Mexico in my case. I have an entrepreneurial streak. My farm is a modestly successful enterprise, and in order to increase my profits, I have plans to expand and purchase 10 hectares of land next to my present farm. Fortunately, I live in a region with cell phone and Internet access, and use a smartphone to help manage my business affairs. I have also had the good fortune to be educated in a MDC institution of higher learning and am fully aware of the potential digital currencies and blockchain technologies can bring to my situation. My parents made

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Case Study: Demographic Influence on Digital Currency Adoption

Introduction This essay is a mini case study that compares and contrasts the lifestyles of two men and their families, and the potential for digital currency succeeding in their respective countries. Anrom Bulla hails from a rural section of a LDC which is very low on the spectrum of development. In contrast, Rana Tilla lives an affluent life in a thriving coastal city located in a MDC. The lifestyles of Anrom and Tilla are taken as data points and assumed to be representative of their respective nations. These family circumstances will be used to infer the broader demographics of each country and the corresponding style of living implied in each case. Based on these conjectures, the likelihood for digital currency to be adopted and make positive impacts in both

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