by SAFE Financial Group
The nano-finance is designed for people who are excluded from the traditional financial system.
It targets the segment of the population that lack financial resources and, above all, do not meet the criteria or prerequisites of the existing financial institutions (unavailability of historical financial data and classic collaterals). It is considered to be the bottom-missing: the initial step for financial inclusion, combating poverty through formal access to capital for long-term development.
The 4 principles of the Nano-Finance model according to SAFE are as follow :
The foundation of nano-finance is based on the spirit of community.
Indeed, the creation of a community with a shared identity and purpose is the foundation of sustainable development. The participants become responsible partners, suppliers, customers, mentors for one another: this constitutes the so-called social collateral. Members realize that their development will only be achieved by themselves, by working together.
Community leaders are designated to administer certain programs or activities, thereby giving them a sense of ownership.
One of the most important principles of nano-finance is accessibility and inclusion.
Nano-finance has been developed for the population segment which is excluded from the traditional model.
The approach must be flexible, as it must consider the different social groups and their specific needs in order to provide an appropriate solution.
These barriers are related to :
(…) as well as other factors related to the behaviors and economic status of the target group
Trust remains the catalyst for business and commercial relationships.