Aeloi is a fintech social enterprise whose main vision is to power a green economy led by grass-root micro-enterprises. This enterprise is co-founded by Sonika Manandhar and Tiffany Tong. Also, both of them are Singularity University Alumna. They founded Aeloi to address the current issues of the traditional financial system in Nepal. This enterprise has built a system to monitor the end-use of microcredit business loans.
Currently, there are some gaps in the traditional financial system. The traditional financial systems do not have concrete tracking ability of user’s spending behavior. Also, there is no way one can assure that there is no corruption. These gaps are affecting efficiency and productivity. So, they created Aeloi in order to resolve these issues.
How does Aeloi work?
Aeloi is a social enterprise that has introduced the digital token system in Nepal for issuing and taking loans. For this to work, Aeloi first partners up with the financial institutions. Then, stakeholders vet, sign up, and train service providers and vendors for goods and services. Now, the users will be able to use the tokens to buy product from these vendors. And, lastly , these vendors and service providers can redeem the tokens for cash from the financial institution.
According to this system, the financial institutions issue loans in the form of digital tokens instead of cash. And, the borrower uses these tokens to make their purchases from the recognized vendors or service providers. Later, the vendors and service providers that received these tokens can redeem cash in return for these tokens from the financial institutions.
Advantages of using digital tokens
Since these are digital tokens, these token can be traced. Which means you can track where the borrower is using the token. This helps monitor that they are not using the tokens in the wrong way other than the project field. In addition, they can make this token valid only in related fields. This way, the borrower cannot use it for other purposes unrelated to the project. Also, it helps remove corruption because it transfers funds directly to the user with no in-between management. Also, it is safer than carrying around money with you.
This is a great initiative by the Aeloi team. It will be of great help for the micro finance businesses as well. The adaption of the digital token system will also mark a step towards a digital future for Nepal.
Visit the Aeloi website: Click here
People are Loving
What is an IP Addressing? Can I Trace Location By Using IP Address
We all mobile phone and computer user need to know that all of us has an unique virtual address attached...
Best 5G Mobile Phones for 2021
Best 5G mobile phones is in the rivalry at this current moment. Well famous populars brands are in this game...
How to transfer data from your old iPhone to new one
Transfer data from your old iphone to new one In iOS world, currently there is best iPhone line up i.e...
Step-wise Instructions to Discover Lost Apple Watch
Sometimes people lost their valuable gadgets in house, office or somewhere concerned. In such situation they may get frustrate and...
Background Processing in Linux. Here is what you need to know!
Introduction of Process Process is an instance of program. A new process is started when you gibe any command to...