Collateral and Secured Transactions

Washington, D.C. March 19, 2019 –  Q-Lana became the newest member of the SME Finance Forum, a global membership network that brings together financial institutions, technology companies, and development finance institutions to share knowledge, spur innovation, and promote the growth of SMEs.  

“200 million businesses worldwide need financing to invest, grow and create new jobs. We are proud to have Q-Lana join our network of 150 members who work to expand access to finance for small and medium businesses,” said Matthew Gamser, CEO of the Forum. 

Mobile phones are helping millions of low-income customers to access financial services for the first time, but they are also exposing them to new cyber threats they could never have imagined. The Serianu 2017 Africa Cyber Security Report estimates that cybercrime in mobile-based transactions costs businesses $140 million per year in Africa. Why is this becoming more common? And what can providers and policy makers do to prevent it? The author offers some simple measures that providers and policy makers can adopt to protect other mobile financial services users from cyberattacks.

The ease with which customers access digital financial services (DFS) can make such implementations appear deceptively simple – with just a click on a mobile phone and a customer will be able to make payments, save money, access credit, and even become insured. Launching a digital channel is not a simple endeavor however. It requires a relevant strategy, the right technology solution, the operational know-how, and a very good understanding of customers.

In the G7 Executive Talk Series briefing report, the critical role of women in the cryptocurrency sector is examined. According to the report, 95 percent of males are bitcoin users while on five percent are females. One key element explaining the cause of this imbalance is due to the psychological theory that men take more risks than women, according to the article.   

Steps to take to deter the gap include:

The APEC Policy Support Unit just released a new assessment of its Ease of Doing Business (EoDB), which says that the "area of Getting Credit recorded the greatest progress." This is accounted for improvements in two areas - secured transactions legal framework (strength of legal rights) and credit information - where APFF work (in collaboration with IFC/WBG) has focused on helping economies enact legislation, establish collateral registries and credit information systems and license credit bureaus, among others.

For years, traditional banks shied away from serving many Africans because of the costs of physical branch expansion and the risks associated with serving low-income people. Small entrepreneurs found it particularly hard to access credit as they often lack the required collateral or credit history. But the launch and growth of digital financial services across the continent is changing that situation. This IFC Impact article profiles how mobile money offers Africans a financial future.

Small and medium-sized enterprises (SMEs) play a crucial role for employment, job creation, investment, innovation and economic growth around the world. They account for about 90% of businesses and more than 50% of employment worldwide, and are therefore crucial for the recovery of the world’s economy. Considering this important role, it is critical to ensure that viable SMEs around the world have access to the credit they need to expand.