An oce(a)n of opportunity: anatomy of a lending protocol to lift the bottom of the pyramid
Formal financing is only available for a portion of MSMEs. The Open Credit Enablement Network or OCEN wants to democratize access to credit. The pandemic is forcing a paradigm shift in age-old lending practices, moving from a balance sheet-based approach to a cash-flow-based approach. However, the big players are still waiting on the fence, as the incentives to engage with the bottom of the pyramid are weak.
Remember how Tim Berners-Lee and his team at CERN shaped the future of the internet with HTTP, or how cumbersome landlines gave way to cellphones, or more recently what UPI did to digital payments ? Switch to a new ecosystem now, which will lend to those who otherwise struggle to get it. For, India is shaping a new credit protocol, which will ensure the provision of last mile credit to individuals and businesses at the bottom of the pyramid.
- FONT SIZE
- TO PRINT
Exclusive Economic Times stories, editorials and expert opinions in more than 20 sectors
Stock analysis. Market research. Industry trends on more than 4000 actions
own experience with
Comment and engage with the ET Prime community
Exclusive invitations to Virtual events with industry leaders
A trusted team of Journalists and analysts who can best filter the signal from the noise