In much of Africa, many people still lack access to basic financial services for many reasons. One of the reasons is that financial institutions have set standards or thresholds that make it impossible for low-income earners to even open a bank account.
Access to soft loans or other forms of financing is even more cumbersome while the punitive interest rates charged ensure that SMEs, farmers, and other groups do not even entertain the idea of borrowing banks.
The fact that this has been ongoing for many years is a clear indication that the conventional banking system has failed these groups. This particular failure is another example of why an alternative financial system is needed. It also explains why more emerging fintech start-ups are now attempting to solve this. One of such start-ups is Koinwa, a crypto borrowing platform.
Bitcoin.com News recently discussed solving the problem with the startup’s CEO, Disu Hakeem to understand how the application is helping financially excluded groups from