"Fintech’s play in the <a href="https://m.economictimes.com/topic/rural-economy">rural economy</a> is driven around Aadhaar for transactions where the biggest digitization has happened during Covid," says Sasidhar N. Thumuluri, CEO and MD of Sub-K, a rural-play Fintech. The value lost in regular transactions has been made up for through the jump in the number of people using digital platforms, he adds.

Early adopters of digital banking are emerging in rural areas and there is an increased willingness among microfinance customers to stay digital, according to Thumuluri. "The journey has started and the customers will quickly catch up," he says. Sub-K expects 25-35 per cent of its MFI collections to happen in the digital format in the next couple of years.

The digital push is not the only sign of a shift towards the rural economy. For Mukherjea, the recovery being seen in auto and consumer durables shows a fundamental shift in credit disbursals towards smaller towns and villages. "This could sustain over two to three years and that will give the recovery a specific shape and pattern which could make it far more sustainable than perhaps many of us are fearing at this juncture," he said.

<a href="https://economictimes.indiatimes.com/news/economy/indicators/rural-focused-lenders-a-big-play-for-indias-revival-story/articleshow/77779725.cms" target="_blank" rel="noopener noreferrer">The Economic Times features insight</a> from the CEO of Accion portfolio partner, Sub-K.

Rural-focused lenders a big play for India’s revival story

Going cashless may seem like a simple issue of things like no more cash in birthday cards to piggy banks being a thing of the past, but the issues go deeper, the divides that a cashless society may cause could be a turning point.

Mayada El-Zoghbi, Managing Director for the <a class="color-link" title="https://www.centerforfinancialinclusion.org/" href="https://www.centerforfinancialinclusion.org/" target="_blank" rel="nofollow noopener noreferrer" data-ga-track="ExternalLink:https://www.centerforfinancialinclusion.org/" aria-label="Center for Financial Inclusion">Center for Financial Inclusion</a> (CFI), an independent U.S. think tank, isn’t thrilled for this future when she spoke to Reuters: “A move to a cashless society will not benefit all groups equally. The groups that are most likely to be excluded will be women, rural communities, and the elderly. In some countries, like the U.S. where a large part of the low-income segment does not have a bank account, pushing out these payments has been a challenge,” she said.

<a href="https://www.forbes.com/sites/paularmstrongtech/2020/08/26/what-a-cashless-society-really-means-for-you/#c813e5c55539" target="_blank" rel="noopener noreferrer">In this article, Forbes features the Managing Director of CFI</a>, an independent think tank housed at Accion.

What A Cashless Society Really Means For You

Sub-K IMPACT Solutions Ltd, a leading fintech company, on Monday announced the launch of a new digital finance platform, Sub-K SARTHI, coinciding with the company’s ten-year anniversary.

SARTHI was developed with advisory services provided by non-profit Accion through a global partnership between Accion and Mastercard that aims to power micro and small businesses to successfully operate in, and benefit from, the digital economy, leading to greater financial inclusion, economic growth and job creation.

Through this partnership, Accion has worked with Sub-K since 2018, helping understand client needs, designing the concept for the platform, and developing operating processes, technology architecture, credit methodology and risk models.

<a href="http://www.uniindia.com/sub-k-launches-sarthi/business-economy/news/2115480.html" target="_blank" rel="noopener noreferrer">United News of India reports</a> on a new product from Sub-K, Accion's portfolio partner.

Sub-K Launches SARTHI

<h4 class="cms-Styles-h2">Accion Opportunity Fund</h4>
MacKenzie Scott gave <a href="https://www.opportunityfund.org/wp-content/uploads/2020/08/Press-Release-AOF-MacKenzie-Scott_8.6.20.pdf" target="_blank" rel="noopener noreferrer">$15 million</a> to provide microloans and other types of support to small businesses owned by people of color, women, and immigrants. Scott is a novelist who helped her former husband, Jeff Bezos, start the online retailing behemoth Amazon.

Formerly fairly quiet about her giving, Scott announced late last month that she had recently donated <a href="https://www.philanthropy.com/article/MacKenzie-Scott-Showers-17/249233" target="_blank" rel="noopener noreferrer">$1.7 billion</a> primarily to nonprofits devoted to racial and gender equity. Scott is currently among the top five wealthiest women in the world, with a net worth pegged at $61 billion, according to <em>Forbes.</em>

<a href="https://www.philanthropy.com/article/Twitter-Co-founderWife/249264" target="_blank" rel="noopener noreferrer">In this article</a> titled "Twitter Co-founder and Wife Give $10 Million for Distance Learning in San Francisco Public Schools (Gifts Roundup)," The Chronicle of Philanthropy reports on notable gifts.

A roundup of notable gifts compiled by the Chronicle of Philanthropy

Fintech Sub-K Impact Solutions, an associate company of BASIX Social Enterprise Group, will unveil its new fintech platform, SARTHI (Seamless Advanced Resourceful Tech-driven Hybrid Interface), for the underserved population of the country.

The Hyderabad-based Sub-K facilitates affordable financial services, including loans, savings, and payments to more than three million under-banked households and micro-enterprises across India on behalf of multiple banks as a business correspondent. So far, the company has processed over <span class="WebRupee">₹</span>3,500 crore of credit, mobilised around <span class="WebRupee">₹</span>2,000 crore of savings and facilitated around <span class="WebRupee">₹</span>20,000 crore of transactions on behalf of 11 public and private banks.

<a href="https://www.thehindubusinessline.com/news/national/sub-k-impact-solutions-to-launch-new-platform/article32287672.ece#" target="_blank" rel="noopener noreferrer">The Hindu BusinessLine covers this new product</a> from Accion portfolio partner, Sub-K Impact Solutions.

Sub-K Impact Solutions to launch new platform

In 2020 alone, Apollo Agriculture has been able to close 25,000 farmers. In total, it is serving more than 40,000 farmers in Kenya.

However, the team isn’t stopping there. It has plans to rapidly scale by partnering and securing more farmers and to that end, the four-year-old startup raised a $6m Series A in May 2020. The round was led by Anthemis Exponential Ventures. Also in participation were The Omidyar Group’s Flourish Ventures, Leaps by Bayer, and Sage Hill Capital, among others.

Njenga also mentions that the company is securing working capital funding to finance loans and grant funding to support research and development (R&amp;D).

After bringing its total raise to $7.6m, the chief customer officer says Apollo is focused on growth in the year ahead.

“We have got a great product that farmers love and we want to continue to scale it.”

To drive home its mission of maximising farmers’ productivity and profitability, per Njenga, Apollo is looking to transition its customers from subsistence farming to commercial farming so that they can make more money.

Learn more about the growth of <a href="https://techpoint.africa/2020/07/27/apollo-agriculture-feature/" target="_blank" rel="noopener noreferrer">Accion portfolio partner, Apollo Agriculture, in Techpoint Africa</a>.

How Apollo Agriculture is solving small-scale farmers’ credit problem in Kenya

<a href="https://bukuwarung.com/" target="_blank" rel="nofollow noopener noreferrer">BukuWarung</a>, an accounting and credit management app for micro, small, and medium-sized enterprises (MSMEs), has secured an undisclosed amount of funding in a pre-series A round led by Quona Capital, pushing its total funding to the eight-digit territory.

<a href="https://www.techinasia.com/bukuwarung-bags-preseries-funding-quona" target="_blank" rel="noopener noreferrer">Read more in Tech in Asia.</a>

Accounting app BukuWarung bags pre-series A funding in Quona-led round

A dependence on cash can be linked to the digital divide that exists in both rich and poor countries, said Mayada El-Zoghbi, managing director for the Center for Financial Inclusion (CFI), an independent U.S. think tank.

“A move to a cashless society will not benefit all groups equally. The groups that are most likely to be excluded will be women, rural communities, and the elderly,” she said.

<a href="https://www.reuters.com/article/us-health-coronavirus-banks-britain-trfn/cash-isnt-king-vulnerable-short-changed-by-virus-idUSKBN23X0XE" target="_blank" rel="noopener noreferrer">Reuters quotes the Managing Director of CFI</a>, an independent think tank housed at Accion.

Cash isn't king: vulnerable short-changed by virus

<a href="https://www.inclusivefintech50.com/" target="_blank" rel="noopener noreferrer">Inclusive Fintech 50</a> is now open for applicants. The initiative aims to identify 50 innovative fintech startups driving financial inclusion and resilience for the three billion financially underserved people worldwide.

The initiative, which is now in its second year, was founded by MetLife Foundation and Visa, with support from Accion and IFC, and additional funding from BlackRock and Jersey Overseas Aid &amp; Comic Relief.

<a href="https://ventureburn.com/2020/06/inclusive-fintech-50-initiative-opens-call-for-2020-edition/" target="_blank" rel="noopener noreferrer">Read more at VentureBurn.</a>

Inclusive Fintech 50 initiative opens call for 2020 edition

<div class="vt__body body-text">

Two years ago, Bobby Price began his business, Principal Barbers, in the North Lawndale neighborhood of Chicago, where he was born and raised.

</div>
<div class="vt__body body-text">

To build his business, Price needed money. When his commercial bank turned him down for a business loan, he turned to his community for support

</div>
<div class="vt__body body-text">

Last October, he got a micro-loan to buy new equipment from a Community Development Financial Institution, or a CDFI, called Accion in Chicago. Accion is one of 1,000 CDFI's serving low-wealth neighborhoods across the country, and aims to fill the gap where mainstream lenders aren't present. Brad McConnell is the CEO at Accion in Chicago.

</div>
Brad McConnell, CEO of Accion Serving Illinois and Indiana was <a href="https://www.pbs.org/newshour/show/why-minority-owned-businesses-are-struggling-to-get-ppp-loans" target="_blank" rel="noopener noreferrer">interviewed on PBS NewsHour.</a>

Why minority-owned businesses are struggling to get PPP loans

North America

United States

East Asia and Pacific

Philippines

Kenya

Sub-Saharan Africa

News

Brittany Howard, 2 Chainz, Brandi Carlile, T-Pain, Leon Bridges and more will bring attention to the small businesses close to their hearts during “Small Business Live”: a music event to help minority-owned small businesses across the United States, with a focus on those run by women and people of color. Proceeds will benefit the <a class="css-1g7m0tk" title="" href="https://www.opportunityfund.org/" target="_blank" rel="noopener noreferrer">Accion Opportunity Fund</a>, which provides grants to at-risk small businesses hit hard by the coronavirus crisis.

<a href="https://www.nytimes.com/2020/06/18/arts/livestreaming-coronavirus.html" target="_blank" rel="noopener noreferrer">The New York Times listed an event benefiting the Accion Opportunity Fund on their website.</a>

Livestreams to Watch: A Rock the Vote Concert and Juneteenth Events

“Three and a-half million small businesses are currently at risk of permanent closure due to COVID-19, with a disproportionate number of them being minority-owned,” said Rich Goodstone, co-founder of Superfly in a statement. “We look forward to raising the profile of this issue by showcasing amazing music performances and the stories of small businesses across America that urgently need our support.”

All proceeds from the show will be donated to the <a href="https://www.accion.org/about" target="_blank" rel="noopener noreferrer">Accion Opportunity Fund</a>, which has been working towards creating economic opportunity for all since 1994, providing nearly 90% of their loans to small businesses founded by people of color, as well as supporting immigrant-owned and women-owned businesses since its foundation. Viewers will also be encouraged to donate via a text code that will be revealed later; fans can also donate on Superfly's site before and after the livestream through June 26.

<a href="https://www.billboard.com/articles/news/9400786/superfly-small-business-live-show-minority-owned" target="_blank" rel="noopener noreferrer">Read more at Billboard.</a>

Superfly Books All-Star 'Small Business Live,' Benefit for Minority-Owned Companies

<a href="https://www.rollingstone.com/t/2-chainz" target="_blank" rel="noopener noreferrer">2 Chainz</a>, <a href="https://www.rollingstone.com/t/brandi-carlile/" target="_blank" rel="noopener noreferrer">Brandi Carlile</a>, <a href="https://www.rollingstone.com/t/brittany-howard" target="_blank" rel="noopener noreferrer">Brittany Howard</a>, <a href="https://www.rollingstone.com/t/leon-bridges" target="_blank" rel="noopener noreferrer">Leon Bridges</a> and more are coming together for Small Business Live, a benefit <a id="auto-tag_livestream" href="https://www.rollingstone.com/t/livestream/" target="_blank" rel="noopener noreferrer" data-tag="livestream">livestream</a> to help small businesses in the wake of <a href="https://www.rollingstone.com/t/covid-19/" target="_blank" rel="noopener noreferrer">COVID-19</a>, with a focus on those owned by women and people of color.

The event will be held Saturday, June 20th from 4:00 p.m. to 10:00 p.m. ET on <a href="https://smallbiz.live/" target="_blank" rel="nofollow noopener noreferrer">smallbiz.live</a> and across all major digital platforms.

All proceeds from the livestream will be donated to Accion Opportunity Fund, which provides loans to small businesses founded by people of color, with additional support to women-owned and immigrant-owned businesses.

<a href="https://www.rollingstone.com/music/music-news/small-business-live-benefit-1014967/" target="_blank" rel="noopener noreferrer">Read more from Rolling Stone.</a>

2 Chainz, Brandi Carlile to Play Benefit Livestream for Small Businesses

Presented by live entertainment company <a class="" href="https://superf.ly/" target="_blank" rel="noopener noreferrer">Superfly</a> and in founding partnership with TikTok, AT&amp;T Business, Square, Vistaprint, and GoDaddy, the philanthropic musical livestream [supported] the small businesses across the country that need our help the most.

Viewers [were able to] donate via text using a special code that will be available ahead of June 20. All proceeds from Small Business Live will be donated to non-profit <a class="" href="https://opportunityfund.org/" target="_blank" rel="noopener noreferrer">Accion Opportunity Fund</a>, which focuses on providing grants to small businesses run by people of color, immigrants and women — some of the communities hit hardest by coronavirus.

<a href="https://www.bustle.com/p/bustle-digital-group-is-partnering-with-superfly-for-small-business-live-a-philanthropic-musical-experience-on-june-20-22975968" target="_blank" rel="noopener noreferrer">Read more from Bustle.</a>

Everything You Need To Know About Small Business Live, A Philanthropic Musical Livestream

Majority of Filipinos live paycheck to paycheck, with only four out of 10 of those surveyed by the country’s central bank in 2015 having emergency funds for rainy days. There are also an estimated 36 million still borrowing cash for their daily needs, leaving them vulnerable to predatory lenders that charge high interest rates.

This is why <a href="https://advance.ph/" target="_blank" rel="nofollow noopener noreferrer">Advance</a>, a Manila-based fintech startup, aims to simplify financing for Filipino workers and promote responsible debt management.

<a href="https://www.techinasia.com/advance-secures-seed-funding" target="_blank" rel="noopener noreferrer">Tech in Asia covered Accion Venture Lab's latest investment in Advance</a>, a digital platform providing salary on demand to workers in the Philippines.

Philippine on-demand salary platform Advance secures seed funding

The majority of Kenyans have mobile money accounts; their activity demonstrates digital financial services’ potential. Accion helps Kenyan innovators harness emerging technologies to create new financial services.

Apollo Agriculture believes it can attain profits by helping Kenya’s smallholder farmers maximize theirs.

That’s the mission of the Nairobi-based startup that raised $6 million in Series A funding led by Anthemis.

Founded in 2016, Apollo Agriculture offers a mobile-based product suit for farmers that includes working capital, data analysis for higher crop yields and options to purchase key inputs and equipment.

<a href="https://techcrunch.com/2020/05/19/kenyas-apollo-agriculture-raises-6m-series-a-led-by-anthemis/" target="_blank" rel="noopener noreferrer">Read more at TechCrunch.</a>

Kenya’s Apollo Agriculture raises $6M Series A led by Anthemis

There are a variety of lenders to research, including traditional banks large and small, online lenders, credit unions, <a href="https://www.federalreserve.gov/supervisionreg/minority-depository-institutions.htm" target="_blank" rel="nofollow noopener noreferrer">minority depository institutions</a>, and <a href="https://ofn.org/what-cdfi" target="_blank" rel="nofollow noopener noreferrer">community development financial institutions</a> (CDFIs). To start, determine what matters most to you, says Leach of Beneficial State Bank, which makes business loans of roughly $350,000 to $1 million on average. Efficient deposit services and online bill pay? A banker who you see around town who understands your business? A credit line? Help getting a PPP loan? Help tapping other SBA programs? Accion, a nonprofit lending network, offers a comprehensive <a href="https://us.accion.org/resource/business-banking-10-tips-choosing-right-bank/" target="_blank" rel="nofollow noopener noreferrer">tip sheet</a> on evaluating a lender.

<a href="https://www.bloomberg.com/news/articles/2020-05-12/not-all-small-business-lenders-are-the-same" target="_blank" rel="noopener noreferrer">Read more at Bloomberg Businessweek.</a>

Not All Small Business Lenders Are the Same

<img class="alignnone wp-image-21068" src="https://content.accion.org/wp-content/uploads/2020/05/MES-Quote_050820_PNG-300x157.png" alt="Michael Schlein quoted in The Economist" width="500" height="262" />

"The financial engine for half the world’s jobs is about to seize up,” argues Accion’s President and CEO Michael Schlein in <a href="https://www.economist.com/finance-and-economics/2020/05/05/for-microfinance-lenders-covid-19-is-an-existential-threat">this piece from The Economist</a>. “Decades of progress on reducing poverty and increasing financial inclusion—all of that is at risk,” Michael adds.

The piece highlights the “existential crisis” facing microlenders around the world, who are essential to the global economic recovery from today’s pandemic. It also features numerous Accion partners—BancoSol in Bolivia, Dvara Trust in India, Lulalend in South Africa, and Pintek in Indonesia—that are finding new ways to support underserved populations and small businesses around the world.

<a href="https://www.economist.com/finance-and-economics/2020/05/05/for-microfinance-lenders-covid-19-is-an-existential-threat">Read more.</a>

News

Filter

Filter

Rural-focused lenders a big play for India’s revival story

What A Cashless Society Really Means For You

Sub-K Launches SARTHI

A roundup of notable gifts compiled by the Chronicle of Philanthropy

Sub-K Impact Solutions to launch new platform

How Apollo Agriculture is solving small-scale farmers’ credit problem in Kenya

From the Center for Financial Inclusion

Rural-focused lenders a big play for India’s revival story

What A Cashless Society Really Means For You

Sub-K Launches SARTHI

A roundup of notable gifts compiled by the Chronicle of Philanthropy

Sub-K Impact Solutions to launch new platform

How Apollo Agriculture is solving small-scale farmers’ credit problem in Kenya

Accounting app BukuWarung bags pre-series A funding in Quona-led round

Cash isn't king: vulnerable short-changed by virus

Inclusive Fintech 50 initiative opens call for 2020 edition

Why minority-owned businesses are struggling to get PPP loans

Accounting app BukuWarung bags pre-series A funding in Quona-led round

Cash isn't king: vulnerable short-changed by virus

Inclusive Fintech 50 initiative opens call for 2020 edition

Why minority-owned businesses are struggling to get PPP loans

Livestreams to Watch: A Rock the Vote Concert and Juneteenth Events

Superfly Books All-Star 'Small Business Live,' Benefit for Minority-Owned Companies

2 Chainz, Brandi Carlile to Play Benefit Livestream for Small Businesses

Everything You Need To Know About Small Business Live, A Philanthropic Musical Livestream

Philippine on-demand salary platform Advance secures seed funding

Kenya’s Apollo Agriculture raises $6M Series A led by Anthemis

Not All Small Business Lenders Are the Same

For microfinance lenders, COVID-19 is an existential threat