In an evolving world of finance, banking, and investment, the dx5 Africa Fintech Summit brought you insights on how the decentralized system can be integrated into the finance sector and how it has augmented customer services. In this article, we are going to delve into the finance and investment privileges for SMEs and how they can have a smooth business with adequate working capital apparently one of the biggest challenges that hinder and thwarts their progress.
In an engaging presentation at The African Fintech Summit by Jason Einsen, the CEO of UTU Technologies, he tackles and elaborates on the benefits of decentralized services by the African Decentralized Finance (Afri DeFi) Alliance whose mission is to provide a conducive environment for the SMEs making it possible for them to have 10x cheaper access to capital.
Decentralized finance is the emerging model for organizing and enabling cryptocurrency-based transactions, exchanges, and financial services independent of intermediaries the like of brokers, exchanges, or banks by using smart contracts on the blockchain.
Decentralization unlike the centralized finance system gives more power to individuals. Jason Einsen acknowledged the challenges that start-up businesses go through. “Everyone in the continent struggles with working capital whether a small business or big business,” he remarked.
Jason painted a picture of what the future has to offer, especially how individuals could maneuver and evade that broke experience for businesses around the world. Having established Afri DeFi Alliance, anyone has access to loans to secure their businesses and all these transactions are done digitally. Ensuring agile and good business foundation.
The Payment and Lending Committee at the Afri DeFi is composed of innovators who have introduced disruptive concepts, products, and business offers on digital banking, custodian, and digital asset-backed lending.
Likewise, there are other organizations that offer similar service Virgo a thematic investor focused on building meaningful businesses, Cardano a public blockchain platform that can execute peer-to-peer transactions and serve as a platform for deploying smart contracts and Celo a mobile-first that are pushing huge technology advances, and accessibility with wallets.
Businesses can now remain optimistic as they have organizations that can hold their hands while in tough financial times and the future of the world in the digital space remains hopeful.