Nanda Crypto: KRIPTON

L-Pesa Microfinance is a fintech startup that is ready to take advantage of the burgeoning financial services needs of the developing world. L-Pesa has a strong focus on automation. 95% user acquisition process and automatic loan underwriting and therefore highly scalable. The company has spent two years developing a system that deals with customers and back

office using a team of seven software developers. The user experience is based on the mobile and web interface, and marketing is mainly done through social media and SMS.

The pile of L-Pesa technology builds on Amazon Web Services, a highly scalable on-demand cloud computing platform that has been or used by major brands like Netflix, Airbnb, Pinterest, and Spotify. L-Pesa has integrated a number of third-party applications to perform tasks such as SMS messaging, user verification, and marketing. Fund transfers are handled through integration with mobile money service providers such as M-Pesa, Airtel Money, Tigo Pesa, and MTN.

Network Effects:

L-Pesa is not a charity. L-Pesa purely business. Being a business gives us certain freedoms not owned by a charity. As a business, we must provide returns. In facilitating microfinance, we must be very efficient; costs for

making a $ 1000 loan equal to $ 100, and because operating costs, banks and financial institutions are limited to how low they can go. Blockchain brings transparency and efficiency, and drastically reduces operational costs, making the small loans work. Tokens are transitionally more efficient than fiat, so tokens are more attractive to

target markets of L-Pesa, and they also help in building communities and creating network effects.

We have done it with fiat as an existing operation; blockchain will allow us to expand our reach and lower our costs. The cost of bank financing does not allow us to reach the people who need it most. Expanding operations by extending reach will enable us to make the facilities available to people who can not be served by banks or microcredit providers because they are considered "unprofitable"

L-Pesa was founded with a vision to improve people's lives through efficient access to credit and related financial services. Ron Ezra Tuval, founder of L-Pesa, has spent most of his career working in developing countries and admits about a decade ago that the most effective way to improve people's lives is through access to credit and related financial services. Since establishing L-Pesa, Ron has focused on achieving this vision. It's about making the world a better place for everyone. L-Pesa began offering microfinance services in Tanzania in 2016 and has expanded its service offerings and geographic footprint with increasing speed in pursuing this vision.

The L-Pesa Initiative

The idea for L-Pesa was incubated for a decade, and business

launched at a time when four important market forces gather to allow

fast scaling.

L-Pesa has built a credit ownership underwriting system which is one of the keys to its success. Consumer credit reporting as available in Western Europe and North America is absent in Africa, India, or other developing regions. A number of models have been tried for years, some with more success than others. The L-Pesa model is based partly on the trust ladder: the user starts with a very small loan (usually $ 1.00) and is allowed a larger loan after a smaller loan has been paid on schedule. Successful payments contribute to the credit score. Credit scores are also influenced by other factors, such as completion of identity verification. Furthermore, L-Pesa relies on other service providers to filter users; in the market today,