How does microfinancing utilize technology to reach underserved populations?
Microfinancing leverages technology to provide financial services to underserved populations who lack access to traditional banking. Digital platforms enable microfinance institutions to offer loans, savings, and insurance products via mobile applications or online portals, minimizing physical barriers. Technologies like mobile payments and blockchain improve transaction transparency and efficiency, allowing for secure and quick transfers. Additionally, data analytics help assess creditworthiness, broadening opportunities for marginalized individuals. By using technology to facilitate access to financial services, microfinancing empowers underserved communities to engage in economic activities and improve their quality of life.