LendSV addresses the Sustainable Development Goal (SDG) #1 as defined by the UN: 'End poverty in all forms'. Our solution is a two-sided web platform for microcredits powered by an electronic payment system based on cryptographic proof, allowing any two willing parties to transact directly with each other without the need for a trusted third party.

According to the World Poverty Clock roughly 600mn people live in extreme poverty. These people are typically excluded from the financial system as they lack identfication documents and have no credit history. As a result local loan sharks charging up to several hundred percent of interest are often the only option. If people have access to Microfinancing, it is primarily done domestically, whereby banks as well as NBFCs typically act as lenders. A continuing low-interest environment, the search for yield and an ever increasing higher prioritization of social objectives makes this market, however, also very attractive for foreign investors who are willing to lend at significantly lower rates. As a first target market we selected South Africa (we will be happy to explain the DD which led to this conclusion) where Microfinancing recorded a volume of USD 2bn in 2018, smartphone penetration is high, and c. 13.3mn people live in extreme poverty. Due to abuse by existing microlenders of the financial hardship of the poor, the regulator introduced an interest rate ceiling of 60% p.a. for Microfinancing. LendSV believes that the interest rate can be cut by at least 50% due to lower interest rate expectations by foreign investors, higher automation and a leaner operational setup. Direct and fast access to financing for the poorest 1 billion people. Depending on the market, up to 50% lower interest rates expected. Global microfinance credit portfolio is USD 114bn with a CAGR of 9%. 600 million people living in extreme poverty until today mostly excluded from the system. LendSV will open up a completely untapped market.

Our technology drastically improves the efficiency of cross-border transactions. Instant settlement, enhanced transparency and transaction costs at a fraction of a US dollar cent will open up an untapped market where micro payments are economical. A blockchain powered digital identity system allows the unbanked to get access to funding. All it takes is a web-enabled mobile device.

Bitcoin is a great medium of exchange, a purely peer-to-peer version of electronic cash which allows payments to be sent directly from one party to another without going through a financial institution. The strongest use case we see is for those who are unbanked, the use of small payments (even under a USD), and for one-off private payments. Bitcoin is better than any other system for the latter specifically. Automated governance of contractual loan obligations, enabling full accountability through the lending process ensured by blockchain based smart contracts. The current financial system, with trusted third parties acting as intermediaries, comes at a cost and hence makes small payments not worthwhile as transaction costs eat up a signficant part of the amount transferred.