Microfinance USD 40bn(2021), bloated with intermediates = lack of transparency + efficiency of investment process + impact measurement
Feasibility study of the microfinance sector to determine an appropriate design of a Cardano based microfinance investment platform dApp
This is the total amount allocated to Microfinance on chain 3.0
More about Microfinance
The microfinance asset class was the first impact investing segment with a track record (since early 2000)
Description of microfinance investment value chain
The attached ppt presents the MicroFinance key players:
Today the value chain includes many intermediates which leads to a lack of transparency and lack of traceability - the investors do not have traceability about how the money is distributed and what is the actual impact on the entrepreneur. From discussions with senior people in the industry this is a growing issue for impact investors demanding more transparency and a huge opportunity to use blockchain technology as a key part of the solution.
Attachments more reference reading:
The Proposal focus
This proposal will conduct a feasibility study of how the microfinance industry could adopt blockchain technology and Cardano in particular.
Bringing together a group of Microfinance experts with Cardano community members (research and technology) to analyse the current supply chain and suggest the key infrastructure required to transform the Microfinance industry to be more transparent and to be able to trace funds and impact on the ground.
Out of this process we expect to both suggest transformation of the traditional MF industry as well as come up with ideas for new opportunities.
The following are key activities for the team of this proposal to succeed:
The Expert Group
The expert group will be assigned by Fabio Sofia the lead proposer. Fabio is based in Geneva, Switzerland which is a significant player in the microfinance industry, and has over 20 years experience dealing with financial inclusion. Fabio has a strong network and will bring onboard key experts from the industry and the expert group will include at least:
Some key technology models that will be evaluated includes:
Challenge question: How can Cardano-based solutions help meet real business needs and what would be their impact?
The Microfinance industry is an impact driven industry,transferring funds across borders too developing countries. Using Cardano infrastructure and technology solutions could support more transparency, traceability and higher efficiency of fund transfers for lower interest rates imposed on the entrepreneurs. This leads to more funds for on the ground impact, avoiding excessive fees charged by legacy middlemen of necessity.
Why is it important? Companies are finally discovering the power of blockchain technologies and Cardano is ready to onboard exciting B2B and B2C solutions.
The microfinance industry is an important one, highly aligned with Cardano values and work in developing countries. However, this is unventured terrain for players to use Cardano’s tech and apply it in this industry and solve real problems.
What does success look like? Innovative products and services that increase efficiency, transparency, and stakeholder engagement as well as expand business to new areas.
Well, this is exactly what this proposal is all about as described before.
Feasibility study budget:
Analysis phase 4 weeks with various team members dedicating time for research and report USD 4000
3 sessions expert group USD 1500 per session = USD 4500
3 sessions with IOG and CF USD500 per session = USD 1500 (CG & IOG will be also included in the expert sessions)
Final analysis and report production USD 4000
Logistics/misc (in person meetings) 2000
Total Budget 16000
Fabio Sofia, has dedicated most of his career to finance, which intends to contribute to positive impact. Co-created Symbiotics in 2005, which has become a world-leader in microfinance investments in emerging markets, going on to join WeCan Group, a fintech specializing in digital financing solutions and blockchain. Following with Asteria Investment Managers, an asset manager aimed at providing impact investing solutions across all asset classes. In parallel, I am also President of Sustainable Finance Geneva, an association promoting sustainable finance.
Yoram has 20+ years of business experience working with technology companies (strategy, partnerships, investors). In the last years, Yoram is focused on combining impact and business. 4 years ago he left his comfort zone and worked for 2 years for an NGO Earthworm.org focusing on sustainable business models across agriculture supply chains. Yoram also constantly works with startups as an advisor and mentor i.e. GivingWay.com. https://www.linkedin.com/in/yoram-ben-zvi-446836
Within Catalyst, Yoram is an active community member, CA, proposer, and very active with Cardano4Climate
Razali Samsudin, Research lead https://www.linkedin.com/in/razali-samsudin
Educator, Editor, Digital Economy, Blockchain & Sustainability Researcher, Social Entrepreneur, Catalyst Proposal Mentor, Wada UN SDG and Education Coordinator, Co-Founder of Sustainable ADA, Contributor for Positive Blockchain & Catalyst School Core Member.
Cole Bartlett, Youth lead, https://www.linkedin.com/in/cole-bartlett
UNITE 2030 Youth Delegate, a recent graduate in Economics & Sustainability, Founder of Sustainable ADA, Blockchain & Sustainability Researcher, & Social Entrepreneur, Ecoquest Education Foundation - Sustainability Research, B Impact Clinic part of UNH's Changemaker Collaborative - Kikori, Sustainability Splash Program Organizer, Bronze UNH Sustainability Award Winner
Trishala Adwaine Suresh https://www.linkedin.com/in/trishalasuresh/
Impact Lead at SmartChain, Impact Assessment Lead Cardashift, Active Cardano Community Member, Project Catalyst Proposer since Fund 7, Co-founder of YouthBlock and Debug Lab, a podcast series.
Raz and Yoram are part of Cardano AIM (Assembly Inspiring Masses) which brings together active Catalyst Community members to design and build tools that support the community. Some examples: include the popular voter-tool (https://cardanocataly.st/voter-tool/#/), the Community Advisor Tools (CA and vCA-tools) (https://cardanocataly.st/ca-tool/#/ & https://cardanocataly.st/vca-tool/#), the SDG Proposer Tool (https://cardanocataly.st/proposer-tool-sdg/#/), the SDG Search Tool (https://cardanocataly.st/sdg-search-tool/#/), as well as the Community Landing Page (https://cardanocataly.st/). AIM continues to focus on developing the best services and tools for the benefit of the Cardano community.
Sessions/meetings will be carried out with sessions being recorded (with consent of all parties) and shared in a publicly viewable Google folder.
Deliverables (summary report and findings) will be shared on relevant sites for open access benefit. Including the new international partnerships, and collaborations with organizations.
A feasibility study completed, and summary report findings published, enabling a framework and strategy to be fine tuned to determine the next steps in developing a MVP.
The MVP built upon the learnings and blueprint resulting from the feasibility study and expert working group sessions.
The blueprint can be used to benefit the Microfinance industry and other relevant sectors, helping stakeholders make the theoretical and applied transition away from a legacy traditional finance system, towards a system that incorporates solutions available today.
This is a new proposal
Goal 1. End poverty in all its forms everywhere
Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
Goal 17. Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development
1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance
8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services
8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all
9.1 Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all
9.3 Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets
17.16 Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the Sustainable Development Goals in all countries, in particular developing countries
17.3 Mobilize additional financial resources for developing countries from multiple sources
A think tank of Microfinance experts, legal advisors, deal structurers, research team and Cardano & blockchain tech experts.
Fabio Sofia: microfinance veteran, Symbioticsgroup.com, sfgeneva.org, Impact finance for 20 years