Skip to main content
Top

2021 | OriginalPaper | Chapter

6. Microfintech Applications

Author : Roberto Moro-Visconti

Published in: MicroFinTech

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

This chapter analyzes MicroFinTech applications after the microfinance background, examined in Chapter 2, the microfinance issues, illustrated in Chapter 3, and the impact of technology (discussed in Chapter 4) and FinTechs (illustrated in Chapter 5). Technology-driven sustainability boosts scalability and outreach. Crowdfunded resources can back microfinance projects, as shown by well-known templates like Kiva.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 390 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Maschinenbau + Werkstoffe




 

Jetzt Wissensvorsprung sichern!

Footnotes
1
See ASHTA (2018).
 
2
Saksonova and Kuzmina-Merlino (2017) and Sinha et al. (2018).
 
3
See Benami and Carter (2021).
 
4
Hussain (2017).
 
5
See Palanivelu and Narmada (2020).
 
6
See Macchiavello (2017).
 
7
See Chauvin Alarcon (2011).
 
8
Source: Global Envision, Microfinance Goes Mobile, http://​www.​globalenvision.​org/​library/​4/​1708/​.
 
10
See, for instance, IAS 7 for an International accounting standard.
 
11
See Garcia-Perez et al. (2020).
 
12
https://web.archive.org/web/20170708185027/https://thegiin.org/assets/GIIN_AnnualImpactInvestorSurvey_2017_Web_Final.pdf.
 
14
Younas and Kalimuthu (2021).
 
Literature
go back to reference Allison, T. H., Davis, B. C., Short, J. C., & Webb, J. W. (2015). Crowdfunding in a prosocial microlending environment: Examining the role of intrinsic versus extrinsic Cues. Entrepreneurship Theory and Practice, 39(1), 53–73.CrossRef Allison, T. H., Davis, B. C., Short, J. C., & Webb, J. W. (2015). Crowdfunding in a prosocial microlending environment: Examining the role of intrinsic versus extrinsic Cues. Entrepreneurship Theory and Practice, 39(1), 53–73.CrossRef
go back to reference Anglin, A. H., Short, J. C., Ketchen, D. J., Allison, T. H., & McKenny, A. F. (2019). Third–party signals in crowdfunded microfinance: The role of microfinance institutions. Entrepreneurship Theory and Practice, 44(4), 623–644.CrossRef Anglin, A. H., Short, J. C., Ketchen, D. J., Allison, T. H., & McKenny, A. F. (2019). Third–party signals in crowdfunded microfinance: The role of microfinance institutions. Entrepreneurship Theory and Practice, 44(4), 623–644.CrossRef
go back to reference Ashta, A. (2012). Co–creation for impact investment in microfinance. Strategic Change, 21, 71–81.CrossRef Ashta, A. (2012). Co–creation for impact investment in microfinance. Strategic Change, 21, 71–81.CrossRef
go back to reference Ashta, A. (2018a). News and trends in fintech and digital microfinance: Why are European MFIs invisible? FIIB Business Review, 7(4). Ashta, A. (2018a). News and trends in fintech and digital microfinance: Why are European MFIs invisible? FIIB Business Review, 7(4).
go back to reference Assadi, D., Ashta, A., & Jung, A. (2018). A tale of three musketeers of alternative finance: Stagnating microcredit, growing P2P online lending and striving for slow money. Journal of Innovation Economics, 26(2), 13–36. Assadi, D., Ashta, A., & Jung, A. (2018). A tale of three musketeers of alternative finance: Stagnating microcredit, growing P2P online lending and striving for slow money. Journal of Innovation Economics, 26(2), 13–36.
go back to reference Attuel-Mendes, L. (2016). Crowdfunding and crowdmicrofinance, an evolution of models for entrepreneurship of the poor. Open Access Library Journal, 3, 1–7. Attuel-Mendes, L. (2016). Crowdfunding and crowdmicrofinance, an evolution of models for entrepreneurship of the poor. Open Access Library Journal, 3, 1–7.
go back to reference Badruddin, A. (2017). Conceptualization of the effectiveness of fintech in financial inclusion. International Journal of Engineering Technology Science and Research, 4(7), 959–965. Badruddin, A. (2017). Conceptualization of the effectiveness of fintech in financial inclusion. International Journal of Engineering Technology Science and Research, 4(7), 959–965.
go back to reference Barabási, A. (2016). Network science. Cambridge University Press. Barabási, A. (2016). Network science. Cambridge University Press.
go back to reference Benami, E., & Carter, M. R. (2021). Can digital technologies reshape rural microfinance? Implications for savings, credit & insurance. Applied Economic Perspectives and Policy (in press). Benami, E., & Carter, M. R. (2021). Can digital technologies reshape rural microfinance? Implications for savings, credit & insurance. Applied Economic Perspectives and Policy (in press).
go back to reference Berns, J. P., Figueroa-Armijos, M., da Motta Veiga, S. P., & Dunne, T. C. (2020). Dynamics of lending–based prosocial crowdfunding: Using a social responsibility lens. Journal of Business Ethics, 161(1), 169–185. Berns, J. P., Figueroa-Armijos, M., da Motta Veiga, S. P., & Dunne, T. C. (2020). Dynamics of lending–based prosocial crowdfunding: Using a social responsibility lens. Journal of Business Ethics, 161(1), 169–185.
go back to reference Berns, J. P., Shahriar, A. Z. M., & Unda, L. A. (2021). Delegated monitoring in crowdfunded microfinance: Evidence from Kiva. Journal of Corporate Finance, 66, 101864. Berns, J. P., Shahriar, A. Z. M., & Unda, L. A. (2021). Delegated monitoring in crowdfunded microfinance: Evidence from Kiva. Journal of Corporate Finance, 66, 101864.
go back to reference Blakstad, S., & Allen, R. (2018). SME microfinance, fractional ownership and crowdfunding. In FinTech revolution. Palgrave Macmillan. Blakstad, S., & Allen, R. (2018). SME microfinance, fractional ownership and crowdfunding. In FinTech revolution. Palgrave Macmillan.
go back to reference Bos, J. W. P., & Millone, M. (2015). Practice what you preach: Microfinance business models and operational efficiency. World Development, 70, 28–42.CrossRef Bos, J. W. P., & Millone, M. (2015). Practice what you preach: Microfinance business models and operational efficiency. World Development, 70, 28–42.CrossRef
go back to reference Buckley, R. P., & Webster, S. (2016). Fintech in developing countries: Charting new customer journeys. Journal of Financial Transformation, 44, 151–159. Buckley, R. P., & Webster, S. (2016). Fintech in developing countries: Charting new customer journeys. Journal of Financial Transformation, 44, 151–159.
go back to reference Chakhar, S., Ishizaka, A., Thorpe, A., Cox, J., Nguyen, T., & Ford, L. (2020). Calculating the relative importance of condition attributes based on the characteristics of decision rules and attribute reducts: Application to crowdfunding. European Journal of Operational Research, 286(2), 689–712.CrossRef Chakhar, S., Ishizaka, A., Thorpe, A., Cox, J., Nguyen, T., & Ford, L. (2020). Calculating the relative importance of condition attributes based on the characteristics of decision rules and attribute reducts: Application to crowdfunding. European Journal of Operational Research, 286(2), 689–712.CrossRef
go back to reference Chauvin Alarcon, M. F. (2011). The business model of microfinance institutions: Value creation and sustainability. Akademiker Verlag. Chauvin Alarcon, M. F. (2011). The business model of microfinance institutions: Value creation and sustainability. Akademiker Verlag.
go back to reference Dorfleitner, G., Oswald, E.-M., & Röhe, M. (2020). The access of microfinance institutions to financing via the worldwide crowd. The Quarterly Review of Economics and Finance, 75, 133–146.CrossRef Dorfleitner, G., Oswald, E.-M., & Röhe, M. (2020). The access of microfinance institutions to financing via the worldwide crowd. The Quarterly Review of Economics and Finance, 75, 133–146.CrossRef
go back to reference Gabor, D., & Brooks, S. (2017). The digital revolution in financial inclusion: International development in the fintech era. New Political Economy, 22(4), 423–436.CrossRef Gabor, D., & Brooks, S. (2017). The digital revolution in financial inclusion: International development in the fintech era. New Political Economy, 22(4), 423–436.CrossRef
go back to reference Hussain, A. H. M. (2017). Financial inclusion through mobile micro banking: Building a prototype for transaction cost efficiency in microfinance practice. Global Disclosure of Economics and Business, 6(1), 19–28.CrossRef Hussain, A. H. M. (2017). Financial inclusion through mobile micro banking: Building a prototype for transaction cost efficiency in microfinance practice. Global Disclosure of Economics and Business, 6(1), 19–28.CrossRef
go back to reference Jarrow, R., & Protter, P. (2019, December). Fair microfinance loan rates. International Review of Finance, 19(4), 909–918. Jarrow, R., & Protter, P. (2019, December). Fair microfinance loan rates. International Review of Finance, 19(4), 909–918.
go back to reference Kim, H., & De Moor, L. (2017). The case of crowdfunding in financial inclusion: A survey. Strategic Change-Briefings in Entrepreneurial Finance, 26(2), 193–212. Kim, H., & De Moor, L. (2017). The case of crowdfunding in financial inclusion: A survey. Strategic Change-Briefings in Entrepreneurial Finance, 26(2), 193–212.
go back to reference Macchiavello, E. (2013). A new frontier of socially responsible financial sector: Microfinance and peer–to–peer lending. Banca Impresa Società, 2, 277–336. Macchiavello, E. (2013). A new frontier of socially responsible financial sector: Microfinance and peer–to–peer lending. Banca Impresa Società, 2, 277–336.
go back to reference Macchiavello, E. (2017). Microfinance and financial inclusion: The challenge of regulating alternative forms of finance. Routledge. Macchiavello, E. (2017). Microfinance and financial inclusion: The challenge of regulating alternative forms of finance. Routledge.
go back to reference Marakkath, N., & Attuel–Mendes, L. (2015). Can microfinance crowdfunding reduce financial exclusion? Regulatory issues. International Journal of Bank Marketing, 33(5), 624–636. Marakkath, N., & Attuel–Mendes, L. (2015). Can microfinance crowdfunding reduce financial exclusion? Regulatory issues. International Journal of Bank Marketing, 33(5), 624–636.
go back to reference Marom, D. (2013). Crowd-empowered microfinance. In J. P. Gueyie, R. Manos, & J. Yaron (Eds.), Microfinance in developing countries. Palgrave Macmillan. Marom, D. (2013). Crowd-empowered microfinance. In J. P. Gueyie, R. Manos, & J. Yaron (Eds.), Microfinance in developing countries. Palgrave Macmillan.
go back to reference Martínez-Climent, C., Costa-Climent, R., & Oghazi, P. (2019). Sustainable Financing through Crowdfunding. Sustainability, 11, 934. Martínez-Climent, C., Costa-Climent, R., & Oghazi, P. (2019). Sustainable Financing through Crowdfunding. Sustainability, 11, 934.
go back to reference Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340.CrossRef Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340.CrossRef
go back to reference Ozili, P. K. (2020). Contesting digital finance for the poor. Digital Policy, Regulation and Governance, 22(2), 135–151.CrossRef Ozili, P. K. (2020). Contesting digital finance for the poor. Digital Policy, Regulation and Governance, 22(2), 135–151.CrossRef
go back to reference Palanivelu, V. R., & Narmada, S. (2020). Impact of demonetisation on the micro finance sector. International Journal of Advanced Science and Technology, 29(4), 705–712. Palanivelu, V. R., & Narmada, S. (2020). Impact of demonetisation on the micro finance sector. International Journal of Advanced Science and Technology, 29(4), 705–712.
go back to reference Rothman, T., & Grunstein, D. (2020). Valuation of early–stage companies and disruptive technologies. Palgrave Macmillan. Rothman, T., & Grunstein, D. (2020). Valuation of early–stage companies and disruptive technologies. Palgrave Macmillan.
go back to reference Royal, C., & Windsor, S. (2014). Microfinance, crowdfunding, and sustainability: A case study of telecenters in a South Asian developing country. Strategic Change, 23(7–8), 425–438.CrossRef Royal, C., & Windsor, S. (2014). Microfinance, crowdfunding, and sustainability: A case study of telecenters in a South Asian developing country. Strategic Change, 23(7–8), 425–438.CrossRef
go back to reference Saksonova, S., & Kuzmina-Merlino, I. (2017). Fintech as financial innovation—The possibilities and problems of implementation. European Research Studies Journal, XX(3A), 961–973. Saksonova, S., & Kuzmina-Merlino, I. (2017). Fintech as financial innovation—The possibilities and problems of implementation. European Research Studies Journal, XX(3A), 961–973.
go back to reference Salampasis D., & Mention A. (2018). FinTech: Harnessing innovation for financial inclusion. In Handbook of blockchain, digital finance, and inclusion (Vol. 2, pp. 451–461). Academic Press. Salampasis D., & Mention A. (2018). FinTech: Harnessing innovation for financial inclusion. In Handbook of blockchain, digital finance, and inclusion (Vol. 2, pp. 451–461). Academic Press.
go back to reference Sancha-Navarro, J. M., Sanchís-Pedregosa, C., & Oliver-Alfonso, M. D. (2018). Relationship between crowdfunding and microfinance: A theoretical approach. Finance, Markets and Valuation, 4(2), 63–72. Sancha-Navarro, J. M., Sanchís-Pedregosa, C., & Oliver-Alfonso, M. D. (2018). Relationship between crowdfunding and microfinance: A theoretical approach. Finance, Markets and Valuation, 4(2), 63–72.
go back to reference Sherwani, N. U. K., Junaid, I., & Zeba, M. (2018). Microfinance and crowdfunding: Alternative approaches for entrepreneurship development. International Journal of Management, IT and Engineering, 8(2), 233–243. Sherwani, N. U. K., Junaid, I., & Zeba, M. (2018). Microfinance and crowdfunding: Alternative approaches for entrepreneurship development. International Journal of Management, IT and Engineering, 8(2), 233–243.
go back to reference Sinha, S., Pandey, K., & Madan, N. (2018). Fintech and the demand side challenge in financial inclusion. Enterprise Development and Microfinance, 29(1), 94–98.CrossRef Sinha, S., Pandey, K., & Madan, N. (2018). Fintech and the demand side challenge in financial inclusion. Enterprise Development and Microfinance, 29(1), 94–98.CrossRef
go back to reference Van Hove, L., & Dubus, A. (2019, January 22). M-PESA and financial inclusion in Kenya: Of paying comes saving? Sustainability, 11(3), 568. Van Hove, L., & Dubus, A. (2019, January 22). M-PESA and financial inclusion in Kenya: Of paying comes saving? Sustainability, 11(3), 568.
go back to reference Younas, W., & Kalimuthu, K. R. (2021). Telecom microfinance banking versus commercial banking: a battle in the financial services sector. Journal of Financial Services Marketing (in press). Younas, W., & Kalimuthu, K. R. (2021). Telecom microfinance banking versus commercial banking: a battle in the financial services sector. Journal of Financial Services Marketing (in press).
go back to reference Yum, H., Lee, B., & Chae, M. (2012). From the wisdom of crowds to my own judgment In microfinance through online peer–to–peer lending platforms. Electronic Commerce Research and Applications, 11(5), 469–483.CrossRef Yum, H., Lee, B., & Chae, M. (2012). From the wisdom of crowds to my own judgment In microfinance through online peer–to–peer lending platforms. Electronic Commerce Research and Applications, 11(5), 469–483.CrossRef
Metadata
Title
Microfintech Applications
Author
Roberto Moro-Visconti
Copyright Year
2021
DOI
https://doi.org/10.1007/978-3-030-80394-0_6