INTRODUCTION
In order to solve a problem within a project, platform, sector or industry, there is first a need to pinpoint the problems, barriers or restrictions withholding the Industry or sector from growing. The individual or platform that solves these problems will forever remain relevant in that said industry. According to research, marketplace lending has been growing tremendously since 2008 but irrespective of this growth, players such as MSMEs (Micro, Small, and Medium-sized Enterprises) has been sidelined from accessing the right services which will, in turn, cause them to grow.
The big question is, what actually is the reason why these MSMEs are finding it difficult to access the needed services; by knowing these problems will pave way for the right solution.
This is the approach taken by Pngme to ensure the right disruption takes place.
Why MSMEs Are Not Growing
A study has shown that MSMEs are finding it difficult to grow as a result of lack of adequate friendly banking system, cross-border payment restrictions etc which the negative impact is lack of access to affordable capital; "the financial gap between these MSMEs and the financial systems keeps increasing".
To make it worse, without any formal credit history MSMEs finds it difficult accessing loans. Furthermore, even if they are able to get access to loans or capital, marketplace lenders set loan rates which will end up killing them more, all thanks to the inefficient and manipulative credit model.
HOW PNGME WILL GROW THE MSMEs SECTOR
I believe the first question someone might ask is, WHAT makes Pngme the adequate platform which will or have the capacity to cause the rapid growth of the MSMEs sector?.
The answer to this question is rather simple, by being an easily accessible platform where access to digital-based capital markets is made very easy makes Pngme the solution to the issues withholding MSMEs sector from growing. This further leads to Pngme being a competitive lending marketplace. Therefore, by opening access to digital base capital while drastically reducing the cost of credit conforms to the vision of Pngme, which is to close the finance gap affecting millions of MSMEs worldwide while causing the economic growth of the countries these MSMEs are found.
Now we have carefully answered the question as to why Pngme is capable of causing the growth of the MSMEs sector, the next question is, HOW?
In order to make the MSMEs sector to grow, the team created a mobile banking application with the following features;
a. Savings,
b. Digital credit score,
c. Mobile-to-mobile payment.
This mobile banking app is built solid thus increasing the chances of MSMEs to access capital; not just MSMEs but their associating consumers will also be able to access financial services from anywhere in the world.
In the same way, aside from mobile banking application, Pngme also uses another strategy to ensure the MSMEs sector grows; this is seen in its utilization of blockchain technology. With blockchain technology, Pngme results to a decentralized lending platform which will work together with its mobile banking application thus making the usage of a digital and tokenized physical asset or Non-fungible token (NFT) within the marketplace to be possible. This will further make the collateralization of loans, asset settlement and processing of transactions easy and convenient.
However, since accessing loans or capital makes the MSMEs sector a kind of borrowers, Pngme sets in strategies which unlike the traditional system will reduce unforeseen risks in this way adding more to the growth of the MSMEs sector; now what is this strategy?
Pngme made loans within its marketplace to be contained in digital bonds thus making collateralization with digital and traditional asset possible thereby reducing borrower risk and default.
The beauty of this strategy is that Pngme uses a matching algorithm to connect lenders with borrowers whereby based on proprietary risk assessment and digital credit score loans are made accessible.
Furthermore, like earlier stated one of the issues causing MSMEs not to grow is lack of formal credit history; since Pngme is in the business of ensuring the MSMEs grows, the team built a hybrid credit score feature which is designed to make it possible for borrowers to access capital without any need for formal credit score.
CONCLUSION
Pngme is a platform created out of the need to ensure the betterment of humanity; thus providing services which will cause the MSMEs sector to grow which will reciprocate the growth of various countries economy.
To further fulfil its goals, Pngme platform created a white and grey label non-custodial mobile banking application with the capacity to allow MSMEs access low-cost credit at the same time transferring it to their customers.
Therefore, one can say in affirmation that Pngme is indeed the first mobile finance platform offering various services wherein MSMEs are duly connected in the emerging markets with accessible and low-cost credit.
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YouTube: https://www.youtube.com/channel/UCmUPIgu-xfdYijOS7eOwYyg
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Website: https://pngme.com/
Author: Chuky92
Author's Bitcointalk Profile Link: https://bitcointalk.org/index.php?action=profile;u=2084586