Traditional group microfinance fails to create individual credit identities for banks
Shivani Siroya · HIBT Lab! Tala: Shivani Siroya · Nov 17, 2022 · at 16:23
Tala founder Shivani Siroya explains the fundamental limitation of traditional group-lending microfinance models like Grameen Bank.
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“What I saw as one of the gaps was that when one of those individuals, let's say, had more potential to grow her business than the others, She was still not able to go into a traditional institution because she didn't have that identity that she could just stand on on her own, and so that lack of data was what I saw as the missing bridge between traditional microfinance and the formal banking system.”
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