It is said that about 2 billion people in developing countries are living in situations where banking and other financial systems can not be used now.
These people have to rely only on cash, and there is only a way to borrow from emergency expenses and business establishment expenses from family members and friends.
The major reason why financial institutions can not give credit to these people is said to lack credibility information .
MicroMoney (micro money) is a project to enable more people to use the financial system by processing personal data collected from smartphones etc. by machine learning and building their own credit information system .
In this article I would like to explain in detail the detailed mechanism of this project, the process of building concrete credit information, the significance of existence of tokens and the current development situation.
Outline and structure of micro money
What kind of service is deployed with micro money?
This section introduces the problems related to financial system access in developing countries and emerging economies, and explains solutions to this problem on micro money.
Two billion people worldwide have no access to the financial system
There are many people in the world who can not access the basic financial system. This financial system is an ordinary service in developed countries such as bank account opening and loan assembly .
People with this problem are said to be 2 billion people in total in African countries, India, Middle Eastern countries, parts of China and regions such as Southeast Asian countries .
These people depend on cash, and the major sources of funds in case of emergency or entrepreneurship are families and friends .
Cause is lack of credit information
It is said that the primary reason why people like those mentioned above can not gain access to banking is lack of credit information . Banks also can not form a loan if they do not have a chance to repay them.
People without access to the financial system are commonly referred to as white collar, blue collar, SME (small and medium enterprises) in the case of enterprises, income about 200 to 500 dollars per person per month, mostly own smart phones It is said to be doing.
In micro money, in order to make such people available for banking, we are conducting a project to create credit information using data generated by their smartphone .
Building credit information from smartphone with block chains and machine learning
Smartphone has a huge amount of data about users.
When using this data for machine learning (machine learning), it is possible to estimate user’s personality and tendency from seemingly unrelated data , so in recent years this combination of big data (aggregate of all data) and AI It is useful in enterprise marketing field .
The same applies to micro money, a project to create credit information by analyzing smartphone usage data of each user by machine learning, and to give access to the financial system to more people.
Part of the collected data is released as an example in the white paper of the project. In addition to basic items such as device information, the following items also existed.
- When entering personal information, how long it took to input each item
- How many times he hesitated when filling in the address entry field
- Music playlist
A user who wishes to form a loan provides such smartphone information and these data are used for machine learning to create credit information of the user concerned.
In machine learning, AI reads the above information and calculates “the probability that the user will repay the loan (do not do) “.
Since the accuracy of this calculation improves as the number of data increases , it is thought that it will become more secure as the service deployment progresses (rough estimates and growth forecast values are stated in the white paper) .
We also manage the service of providing big data
Micro money is under development mainly in Southeast Asia since 2015. We already have services in Thailand, Cambodia and Myanmar .
The data collected from users in these countries and countries that will be added in the future, and the credit information generated from it will be huge.
Micro money is supposed to also sell this big data to third parties such as banks .
Also, some of the revenue from the sold data will be returned to the owner user (provider) as a token.
What is an AMM token?
Let’s look at the token issued by micro money, AMM token.
|Currency name||AMM token / $ AMM|
|Main use||Data provision · Compensation for community contribution / purchase of big data / access to partnership / use as collateral|
|Issue number||17, 422, 798 AMM|
|Other||Premain type · Utility token|
Reason for token issuance
According to the project’s white paper, the main reason for introducing block chains and implementing ICOs is to raise funds for the global expansion of services .
As mentioned above, micro money has already started service in Thailand, Cambodia and Myanmar, and we are trying to acquire more markets mainly in Southeast Asia from now on.
A business plan corresponding to the amount of procurement is also published in the white paper.
Purchase big data
User data constructed by micro money can be purchased with AMM token .
Financial institutions and others have the merit of getting customers’ credit information cheaper . Also, there is demand for such information in fields such as e-commerce .
Remuneration to users
The user (the owner of the money) can receive some of the revenue as a reward in the AMM token when his data is purchased in the above case.
Also, if you repay the loan within the due date, you can earn a bonus with the AMM token.
Partnership · Collateral etc.
It is said that AMM tokens can be used for registration in a partnership service that makes limited platform functions available, and as collateral for loan assembly.
Remuneration such as contribution to the community (bounty) is also distributed as an AMM token.
Comparison with similar project
Micro money is a project to create credit information for people who can not use financial services such as banks and increase the number of borrowers all over the world, and this business model is not much else .
Therefore, this time, I would like to compare ETHLend (ESLENDEN) which is famous in the field of micro lending with micro money, and I would like to explain the big difference between these projects.
Micro money is not a P2P lending service
ETHLend is a service that people who want to lend money and those who want to borrow exchange data by P2P (individuals) and secure trust and transparency of transactions using block chains and smart contracts.
Therefore, what ETHLend provides is a platform that matches people who want to provide funds and those who want to borrow .
On the other hand, the core service of micro money is to provide credit information using data generated by smartphones and provide a platform on which users can borrow money.
Financial institutions such as banks will provide funds and Hearts Loans will be MicroMoney.
The merit of this project is that those who did not have access to financial institutions so far can easily borrow money because of lack of credit information.
It also has the advantage that companies can purchase credit information in exchange for AMM tokens.
Summary point of micro money
Up to this point, we explained the outline and features of the project of micro money, and the differences from similar projects.
Here, I will summarize the key points in reviewing the project.
Operational results since 2015 · elaborate market research · Application released
Micro money is a listed company that has been servicing since 2015. We have already started services in Thailand, Cambodia and Myanmar, and Android applications are also released.
In addition, we have disclosed details of projects including investigation of the market in detail, and on our website and GitHub etc. we have all business plans, performance reports and so on.
Target market is wide
We suggest that 100 of the 196 countries in the world are markets for micro money.
In these developing and emerging economies, there are many people who do not have access to banking, so it can be said that the opportunity of micro money is very big.
Micro money also offers Hearts Loans
As explained in the section on comparing with similar projects, micro money is a project to enable existing financial institutions to issue loans to more people through the creation of their own credit information.
However, the micro money project itself also offers Hertz loans to users who can not borrow money from banks.
User’s credit information managed on the block chain
Big data constructed by the micro money service are all stored on the block chain .
By managing personal credit information on block chains that can not be camouflaged or tampered with, it is expected to gain credibility from banks and insurance companies that use the data.
Finally, let’s check the roadmap of the project.
|2018||Entry to Vietnam, Malaysia, Singapore / 100 thousand users|
|2019||Advance to China, Hong Kong, Taiwan, Korea, India / 300 thousand users|
|2020||Advancement to Africa / South America / 1 million users|
|2021||Entry into the Middle East, Europe and America / 25 million users|
2018 – Southeast Asia
In Southeast Asia, there are research findings that only 27% of the total regional population holds bank accounts, and the number is estimated to be over 400 million people.
On the other hand, the Internet economy in Southeast Asia continues to grow, and by 2025 its economic benefit is said to be about $ 2 trillion .
2019 – China
In China, more than 700 million people (about 50% of the population) are said to have access to the Internet, and research that 95% of users are access from mobile phones has been studied.
Also, in China, about 20% of the population has no access to banks.
2020 – African countries
In African countries, about 80% of the total population is said to have no bank account. Also, survey results indicate that 63 out of 100 people have cell phones.
2021 – Middle East
The situation of low bank account holding rate · high mobile phone holding rate is the same in the Middle East.
In Pakistan, we recorded a growth rate of 185% of the number of broadband users, etc., and the population of over 100 million people has not yet accessed the bank.
Because micro money has proven track record of service development in Three countries of Thailand, Cambodia, Myanmar, it can be said that it is a very attractive project.
We are also aiming for technology integration with major projects such as GOLEM, uPort, OmiseGO, etc. You should also look at points such as whether to conclude a strategic alliance with such a project in the future.
If you are interested in micro money, please check out the official website!
Author: Yuya 【Coin Desk News】 – Source Post: https://crypto-times.jp/micromoney/
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