Social banking redefines traditional banking by leveraging community trust and social capital to provide financial services like credit, savings, and insurance to underserved groups, such as micro-entrepreneurs.
Micro-entrepreneurs, informal workers, and small business owners in developing economies who are often excluded from traditional banking due to small transaction sizes or perceived risks.
It uses alternative data sources, such as group transactions and social relationships, to assess creditworthiness and reduce risks, enabling access to financial services tailored to the needs of informal economies.
Micro-entrepreneurs contribute 60% of GDP in developing countries but are underserved by traditional banks. Social banking empowers them with financial tools to grow their businesses and build resilience.
Social banking offers both individual and group-based services, including savings, investments, credit, and insurance, designed to meet the unique needs of informal economies and communities.
Social banking ensures financial inclusion by leveraging community trust, social capital, and alternative data to provide tailored financial services like savings, credit, and insurance to underserved groups. By focusing on group-based models and informal economies, it reduces barriers like high costs and perceived risks, enabling micro-entrepreneurs and informal workers to access the tools they need to grow, protect their livelihoods, and build financial resilience.