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Ripple Partner Finastra and ConsenSys Trial New Microfinance Initiative "Trust Machine"

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Tue, 09/22/2020 - 10:04
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Yuri Molchan
Finastra launches a microfinance initiative in Africa to reduce SME funding gap and accelerate financial inclusion to achieve equality of access to financial services
Ripple Partner Finastra and ConsenSys Trial New Microfinance Initiative "Trust Machine"
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According to the website of Ripple partner Finastra, the platform intends to pilot an ambitious microfinance initiative called Trust Machine in Kenya, Africa, to focus on eliminating the funding gap for SME and create 50,000 new jobs.

Besides, Finastra plans to tackle issues of equality in financial services and financial inclusion for the unbanked around the world.

Finastra and ConsenSys to launch new microfinance initiative

Finastra, which partnered with Ripple last year, is pursuing its mission of spreading innovation around the world as part of its open cloud platform strategy and intends to have a go at solving the SME funding gap in Kenya, as well as to diminish inequality of access to financial services with all the new opportunities that people would get from it.

The company believes that the most efficient way to reduce the amount of unbanked people around the globecurrently 1.7 bln peopleis to fight poverty with a rise in employment.

The SME funding gap in Kenya and other African countries that Finastra intends to tackle amounts to a staggering $19 mln. For this purpose, the company has come up with Trust Machine, a microfinance initiative.

Among its partners are ConsenSys, ETH Zurich, Greenpoint Financial and Fusion Optimum.

XRP
Image via Finastra

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Trust Machine to increase economic growth

Trust Machine intends to reduce the $19 bln funding gap by at least one percent by potentially creating 50,000 new jobs in new countries where it begins to operate, thus increasing economic growth and fighting against poverty.

Aside from the push the new initiative gives to the economic sector, it also enables fintech companies to create apps to lend to local businesses.

It also partners with local banks to enable them to spread their financial services to local unbanked people, such as IFIC Bank in Bangladesh, for instance.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.