Blockchain Uses for Microfinance Institutions in the Water and Sanitation Sector: Pilot Study

Microfinance Institutions (MFIs) are organizations that provide small loans to borrowers who typically lack collateral, steady employment, or a verifiable credit history and therefore do not have access to traditional commercial banking. Blockchain technology could be used to create a more holistic view of the financial position of a potential borrower, which could result in better lending decisions. This study explores how blockchain technology has the potential to assist Microfinance Institutions in the water and sanitation sector through a pilot project developed in Peru. The improvements seen in the existing microfinance ecosystem during the implementation of the blockchain platform can be sorted into two main groups: improved institutional performance, and data ownership for the individuals.

Bibliographic Details

Main Author:	Inter-American Development Bank
Other Authors:	Pedro Coli
Language:	English
Published:	Inter-American Development Bank
Subjects:	Microfinance, Water and Sanitation, Blockchain, Sanitation Service, Microfinance Institution, Bank Loan, Q25 - Water,
Online Access:	http://dx.doi.org/10.18235/0003273 https://publications.iadb.org/en/blockchain-uses-microfinance-institutions-water-and-sanitation-sector-pilot-study
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