In today’s world, mobile technology has become an essential element that many of us can ill-afford to be without.

In fact, you'll be hard-pressed to find anyone who doesn't have a smartphone or a tablet on hand at any given time. Not only do they rival the features and specifications of most desktop computers and laptops, but current-generation models exceed them. Best of all, these devices are accessible for those with even the most modest of budgets.

From a business perspective, it can be an invaluable tool. One particular area where it can be extremely beneficial is in microfinance. In a nutshell, microfinance or microcredit as it is known as, serves the purpose of allowing financial provision to small businesses or entrepreneurs lacking in funds. Over time, however, it has become more than that, extending itself to poverty-ridden households and giving access to quality products and financial services as well.

Microfinance

Sharone Perlstein, one of the paragons of business and industry, has expressed his attraction towards the concept of microfinance, viewing it as an effectual and potent means of imparting the necessary financial services to billions of unbanked individuals all over the world. While its potential to stimulate economic growth cannot be underestimated, the medium for its delivery has been quite an obstacle for the high expenditure related to the logistics and travel involved.

Benefits of mobile technology for microcredit

This is where mobile technology comes into play. The most notable benefit that it has when it comes to microfinancing is its communications platform. What would have otherwise been a nightmare in terms of arrangement and coordination regarding logistics and cost can be avoided completely, thanks in no small part to the ease of transmitting information and data using mobile technology. It allows both lender and borrower to establish communications with one another, no matter the location.

More importantly, mobile devices are inexpensive investments that anyone can afford. With the popular manufacturers competing with one another and perpetually producing newer models at a rapid pace, and prices are expected to continue dropping compared to previous-generation variants. This will ultimately allow mobile devices to be even more attainable.

The micro and mobile future of today

As mobile technology continues to evolve, so too will its bond with microfinance become stronger. Forecasts and predictions by Perlstein indicate that the digital form of currencies may eventually take the position currently held by the more costly and arguably less accessible services, of the more conventional and traditional banking establishments.

To this end, only time will tell whether the theories behind cryptocurrencies and microfinancing becoming the next leaders in a more secure and reliable form of banking will become a reality.