farcards

Beyond Remittance Excessive Fees: Tackling the Net Interest Margins (NIM) Problem

Remittances are slow, expensive and extractive—people paying an average of 7% fees.

> This post examine how extractive NIMs in local banking systems stifle economic growth:

> Less developed financial systems will see much higher NIMs—typically 5-10%

> A banking system with extractive NIMs means mortgages are more expensive than they should be

> Fewer people buy houses & few houses are built

> Extractive NIMs eat into all segments of society. 

> They mean lower GDP growth & less employment

> This post explore how an Internet-based financial system can eliminate these inefficiencies by giving large investors the ability to invest in high-yield opportunities in less developed economies👇

Source: https://x.com/theiaresearch/status/1901705825225527580

I have the deepest admiration for people who spent the past two decades solving the technical challenge of building open databases with rule of law. We now have the ability to create scalable, permissionless servers that communicate with each other and interact with smart https://t.co/j7aetF5QOg

everybody knows about the remittance problem — ie remittances are slow, expensive and extractive — but do you know about the Net Interest Margin ("NIM") problem?

Most of us have seen the statistics on remittances — people send each other over $900B annually and pay an average of https://t.co/Jq35j5ZIYB