Can you believe that in 2017 there are still over two billion adults worldwide without access to financial services? – According to World Bank
Financial services offer choice and freedom in the way in which we use money; they provide a avenue that ranges from buying everyday goods to investing in the future. For many, they are taken for granted, but for underserved populations, simply having access to these services would be a change for the better.
LALA World (LALA), an emerging blockchain-based financial platform, is going to create this change. Aimed primarily at migrant workers who send remittances home to their families and the unbanked populations of the world, this innovative platform provides equal access to financial services for all by circumventing traditional bank systems.
LALA is an easy-to-use, peer-to-peer mobile finance application designed to change the way in which individuals, small businesses, and micro entrepreneurs transact, make domestic and international payments, and borrow money for banking products such as cards and insurance.
This platform will offer fresh opportunities to populations that are in dire need of a change.
Migrants and the Unbanked
One of the leading reasons for individuals including migrant workers to be unbanked is that this segment of the global population is often excluded by banks and financial institutions. In other words, they are not offered financial services due to the difficulties involved in adequately assessing price risks stemming from an absence of reliable identification systems and financial data, credit history, and unpredictable legal systems.
Excluding this market, however, means that large amounts of people, small businesses and micro entrepreneurs are left with little to no access to financing, which effectively stifles any potential for growth and development, which continues the perpetuation of cycles of poverty.
LALA, NGOs, and many global organisations recognise that access to finance and financial products, such as a bank accounts, is a key driver in tackling poverty and boosting economic growth. As such, providing financial services to underserved populations remains a global issue that needs to be solved.
Many organisations have attempted to solve this issue and many solutions have been tried and tested. While some have improved the situation, none have had any long-term effects.
That is where LALA is different. Their mobile platform will affect real and positive change in all groups of society and bridge the gap between those with and those without access to financial services.
Most of all, LALA will provide new opportunities for these individuals and small businesses: to have their money stored somewhere securely, to transfer money to the loved ones overseas with ease, to finance small businesses.
The platform not only aims for financial inclusion, but it also intends to bring communities together at a grassroots level to work to solve real issues through features that have been integrated into their products such as the LALA wallet.
How does LALA work?
The base of LALA’s platform is their signature mobile wallet. The LALA wallet has integrated all of the features required for basic banking purposes. With this wallet, users have access to:
- LALA Transfer: a domestic and cross border remittance program in which crypto or fiat currencies can be sent or received,
- LALA Billpay: a system that can be set up to pay regular bills,
- LALA Lends: a system that will allow domestic and international peer-to-peer lending via crypto and fiat (a significant advantage for small businesses and individuals),
- LALA Card, a crypto and fiat card linked to your wallet.
All an individual needs to access LALA is a mobile phone. It is important to note that even in low income countries mobile penetration is often high.
For people living on less than $2.50 a day in rural areas, mobile money is emerging as a common source of financial transactions hence why the launch of LALA will serve them well.
Complete transparency and decentralisation
One of LALA’s most redeeming security features stems from the fact that it uses blockchain technology.
Blockchain increases transparency through its immutable open ledger on which all transactions are recorded in real time. This means that anyone using blockchain can see the transactions that have been previously completed. This high level transparency is central to the LALA platform and will provide a safer method of banking for all.
Blockchain’s decentralization significantly reduces the risk of hacking or fraud because information is not kept in one place, but rather across a network of computers. This means that the system does not have one point of weakness that can easily be hacked, so all of the information, currency, and transactions on LALA land will be safe from these kinds of security breaches.
Lastly, transactions on the LALA platform will use smart contracts which self-execute. This will not only reduce the risk of non-compliance but will also reduce costs and settlement times in addition to circumventing costly intermediaries such as clearinghouses.
Without intermediaries involvement, payments and remittances will be executed more efficiently, allowing individuals timely access to their capital with minimal fees.
Going global – the LALA launch.
The LALA platform is set to launch at the end of the year and to take the world by storm shortly after.
As a platform dealing in cryptocurrencies as well as fiat, the startup has developed LALA tokens which are intrinsic to many of the platform’s functions. These tokens allow for seamless transfers and payments for various transactions and services.
To get involved in the LALA movement, keep an eye out on the website for their LALA token pre-sale which start on November 25.