The Park Paradigm reports on the boom in microlending -- the ability to lend small amounts of money to anyone anywhere in the world. The post includes a key quote from an Economist.com article:

In the past, the two main obstacles to providing financial services to poor people have been lack of information and costs. Those obstacles are now being overcome. Ultimately lower costs and better information are good not just for the poor, but for everyone. Microfinance may have started as a niche business, but the chances are it will soon be micro no more.

The best businesses are always those that can profitably serve the least valuable customer; their ability to secure the bottom of the market decreases the likelihood of a competitor coming in and taking the market from underneath them. For this reason, microfinancing companies could be the ones most likely to completely disrupt the global financial services market. If such companies can gather momentum and profitability in markets that current financial service firms have cast away as being unprofitable, then market disruption is virtually assured.

Featured Reports

• Web 2.0 and the Assassination of John F. Kennedy [1]
• Culture 2.0 [4]
• SEO 2.0 [5]
• Publishing 2.0 [7]
• Real Heroes [1]
• The Mythology of Web 2.0 [4]
• Psychological Warfare [6]
• Superhero Marketing [5]
• Inverse Universe [6]
• Platform Strategies [6]
• Unclassifiable [6]
• Searchonomics [7]
• Open Source Strategies [12]
• Google [42]
• On Innovation [124]
• My Mistakes [9]

• Yo, Peep This: RSS Feed