Quipu Market founded by two MIT alumni, is using data from the informal economy to offer a series of small loans to entrepreneurs. Quipu has developed an online marketplace that helps entrepreneurs publish product catalogs, record transactions, and increase their sales. By digitizing business activity, Quipu can assess credit worthiness in a new way and provide loans at rates comparable to traditional banks. Quipu is the one providing the loans, which gradually increase as entrepreneurs demonstrate the ability to pay them back. By the end of this year, the company plans to open up its blockchain-based lending system to allow anyone to buy interest-bearing tokens with money that is then allocated to entrepreneurs using Quipu’s algorithms assessing credit worthiness.
Quipu is currently operating across Colombia and planning to expand to Mexico by June of next year. The problem is people don’t have access to financial products that are designed for their economy, so then there’s no economic development. Supporting people with loans and providing them with other ways to sell more can improve how their business works, and they can start using the data they already have to access not just our loans but other financial services at better rates.