Being limited when it comes to financing is a very inconvenient position, however, there are ways in which people can still get access to funding, even if they currently have an unbanked status. There are around 1.7 billion people globally, who hold an unbanked status. In Eastern Asia, around 71% of the adult population has bank accounts, while in Central Asia, the percentage drops to 65% in 2017.
What are the main reasons to have an unbanked status?
One of the main reasons why people decide against having a bank account is their distrust in the honesty and credibility of banking institutions. This is why platforms like AssetStream are gaining popularity among people with unbanked status, as they offer a more secure way of funding, through the employment of blockchain technology, which allows for a higher level of transparency and protection.
Another big factor, which motivates people to remain unbanked is an unsteady monthly income, which inhibits them from being able to plan out their budget. This means that managing a bank account may be a difficult task, considering the monthly bank charges for the maintenance of an account.
Having an unbanked status should not stop people from accessing financial tools and funding, which is why it is always a good option to check out the services of nonbanking institutions. Platforms like AssetStream offer comprehensive tools specifically designed for people who want to get away from the rigidity of banks, while still having a level of security and protection when it comes to their financial transactions.
AssetStream makes you financially strong
Platforms like AssetStream are one of the best ways someone can shift from an unbanked status to financial stability, through the use of microfinancing. Their peer-to-peer platform was designed with ease of use in mind so that customers are not required to go to a physical office and fill up a mountain of documents in order to get financing. Another great feature of the platform is the fact that the middleman is eliminated from the equation, which significantly lowers the amount of taxes and additional charges you have to pay when you receive funding, contrary to the policies banks usually adopt.
The main idea behind the AssetStream platform is to provide a source of financing for unbanked and underbanked people and small businesses through the use of microfinancing.
Risks for the lenders are reduced with its Self Regulated community with verified profiles, AssetStream technology and the ability to enforce local laws. Because intermediaries are eliminated, the monthly interest offered is least 0.75% up to 4% on small loans.
As a social mission, AssetStream wants to provide basic financial education. This is done through investment guidance to the financially illiterate which will allow them to make a better financial decision for themselves, ultimately improving their personal lives and less dependant on the loan shark.
AssetStream uses the Stellar Protocol which facilitates the best combination of transaction costs, transactions per second and average settlement time of any major blockchain. Further, it enables smart contracts to be developed and executed. Stellar makes a seamless conversion of currencies possible by the usage of its distributed exchange that is built within the network.
Get rid of your unbanked status with a nonbanking institution
Moving away from an unbanked status is possible, thanks to innovative lending platforms like AssetStream. While such lending companies are still new to the market, they are a trustworthy replacement of traditional banking. If a customer is looking to get financing, but does not want or cannot reach such financing through a bank, some of their best options are nonbanking institutions and online P2P platforms like AssetStream.