“In order to create income you have to encourage people to become entrepreneurs.”
LendSend CEO Chris Robinson met with Nobel Peace Prize Winner Dr Muhammad Yunus last week to discuss remittance and loan costs for lower income families.
Dr Yunus, an economist, Microfinance pioneer and the “Godfather of micro-credit” founded the Grameen Bank in 1983 after pioneering the issuance of small (micro) loans to poor women during the 1970’s whist working as a professor at the University of Chittagong in his native Bangladesh. Today Grameen Bank lends over $2.5 billion a year to nine million borrowers, approving about 2,000 business proposals each month; while the microcredit movement has grown and spread throughout the world, operating in the UK and also with over $1 billion invested in the US, with plans to double that in the next few years.
Loans are given to people who have little (or no) ‘creditworthiness’ on the basis of trust only. Some borrowers may not have handled money before. Yet Grameen enjoys a repayment rate of 98.96 per cent. And to think it all started when Dr Yunus lent $42 of his own money to basket weavers, pioneering the concept of microcredit. He showed it is possible with tiny loan amounts not only to help people survive, but also to create the spark of personal initiative and enterprise necessary to pull themselves out of poverty.
Dr Yunus won the Nobel Peace Prize in 2006 for his work lifting millions out of poverty. He continues to challenge the financial system he believes is designed for wealth monopoly rather than wealth distribution and which prioritises banks that are too big to fail while ignoring billions who are too small to matter.
LendSend CEO Mr Robinson took the opportunity to discuss with Dr Yunus how LendSend’s solution is reducing cost and simplifying cash remittances, as well as making transfers possible in minutes, not days.
LendSend provides low cost remittance and loan services for those who do not have access to a bank account or financial institution. Aiming to help migrant workers first and foremost, LendSend’s mission is to disrupt the remittance and lending industry by providing services that until now has not been possible. LendSend is using newer blockchain technologies to allow faster and cheaper cash money transfers and using these cash remittances, help people gain better credit scores and obtain lower cost borrowing.
“We need to think differently and fostering entrepreneurship is the solution” Dr Yunus says. He suggests one way to tackle poverty is to create income. By offering a cheaper, faster and secure money transfer product, as well as affordable loan rates, LendSend empowers families to keep more of the money they earn and spend less on unnecessary money-transfer fees and high interest rate loans.