With the Latest Findex Reports Estimating Around 2 Billion People Across the Globe Without Access to Any Banking or Financial Services, Singapore Based NEL (New Economy Ledger) Foundation, is Taking Unique Initiatives to Empower Communities in Developing Countries with its Blockchain Based Innovative Microfinance Solution

SINGAPORE / ACCESSWIRE / August 29, 2018 / Banking and financial services are quintessential to progress and development, however, despite efforts of providing mainstream financial services to communities in developing economies the recent findex reports present disappointing figures. With over 2 billion people - mostly in developing countries - with no access to any form of financial or banking services financially empowering rural and semi-urban communities in developing economies yet remains a challenge; not to mention the fact that such acute lack of financial services is an impediment to growth diminishing effective production.

Though microfinance models like that of the Gramin Bank (founded by Mohammad Yunus who was awarded a Nobel in Economics for his efforts) in Bangladesh have been instrumental in providing such services there is yet a long way to go. Integrating Blockchain technology with its innovative microfinance model, NEL, a Singapore based blockchain project is developing a unique mechanism to empower such communities by providing access to secure and better financial services by ensuring better interest rates for borrowers and also motivating lenders by safeguarding their interests.

The absence of any regulated or quality financial institution in communities allows unauthorized lending sharks to exploit those in need by levying exorbitantly high-interest rates. NEL identifies the problems facing such communities including the issues that limit the extent and reach of financial institutions in such communities.

Addressing these issues, the NEL whitepaper promises operating with comparatively much better interest rates for borrowers and also provides exclusive benefits to the lenders. By creating a robust, intuitive and interactive ecosystem leveraging the blockchain technology it ensures elimination of unnecessary costs incurred on ledger upkeeping, account maintenance, and sums lost to transaction processing and third-party intermediaries.

Evan Davis, CEO NEL, says: "NEL will be the first microfinance lending organization catering particularly to developing economies. We will be offering practical solutions to the loss of productivity suffered by the microfinance organizations and all NEL users will be able to lend with no risk to developing communities while earning interest."

Tapping Into An Emerging and Expanding Multi-Billion Dollars Market

Microfinance has emerged as an effective solution and that has inspired the development of many microcredit and finance institutions in past two decades. In 2016 an estimated 132 million people were taking services from various microfinance institutions as the overall cumulative financial credit portfolio of such institutions was calculated to be more than 100 Billion Dollars. A +9.4% increase in the credit portfolio owing to a +9.6% increase in the number of borrowers is a strong and positive indicator of the growth and potentials of the microfinance market. South East Asia is the major hub of microfinance institutions with the two countries India and Bangladesh recording highest borrowings and an overwhelming growth rate of 23%.

This is but the tip of the iceberg as despite an unprecedented growth the microfinance institutions manage to reach out to only 20% of the poor and underdeveloped communities in developing economies. Moreover, as only 63% people in developing countries have access to something as basic as a bank account the World Bank through its Universal Financial Access 2020 initiative has committed to enable 1 billion people to get a transaction account.

NEL: Offering a Blockchain based secure and transparent Microfinance solution

Bridging the gap, NEL is creating a platform bringing both the lenders and borrowers together. With Blockchain technology it makes the rather complex processes simpler, secure, and more transparent. With blockchain, the NEL platform will significantly reduce the operational costs involved which in turn will enable them to operate with nominal loan processing charges and fees. It also claims stand out and ahead of the competition by offering quick and seamless payment processing, low transaction fees, and most importantly a high level of security using NEM blockchain features.

Built on the NEM blockchain technology the NEL platform will be powered by unique 'NEL tokens' which have multiple functions on the platform like allowing members to receive privileges on the allocation of smart contracts, the payment of interest by borrowers, receiving profits on the funds loaned and more. The NEL tokens initially valuing 1 NEM are to be developed as dedicated tokens and will be exchangeable and tradable in the open market. The platform will also feature a unique NEL USD token which will be pegged to the fiat currency; 1 NEL USD valuing $1 USD. While the NEL USD will protect borrowers from market volatility as the contracts and lending will be carried out in NEL USD.

The two mosaics/tokens will compliment each other on the platform and have been developed to provide both borrowers and lenders with a comprehensive solution which offers flexibility and is scalable in the long run. Moreover, all members will have access to a dedicated highly secure NEL token wallet which can be accessed from both desktops and mobile devices making it further easy for users to initiate and track transactions and get access to all features on the platform.

NEL ICO: An invitation to participate in the Microfinance revolution

NEL has already announced the launch of an ICO seeking funds to further develop the NEM platform. The ICO crowdsale is due to launch 15 September 2018 and offering benefits to all early investors, those participating in NEL tokensale within the first two weeks get an exclusive bonus of up to 30%.

Get more information about the promising NEL project and their related developments, visit the NEL website here https://nel.network.

Contact: contact@nel.network

Website: https://nel.network

SOURCE: NEL Network