Hyderabad: Telangana government’s push towards using emerging technologies like Artificial Intelligence, Blockchain, Machine Learning and others is helping many local startups to innovate in every field possible. One such startup is Hyderabad-based Cognitochain which has developed a Blockchain-led framework for the microfinance industry and its first pilot is being implemented in the State government-run Stree Nidhi programme.
Stree Nidhi, PR&RD, Telangana, has implemented B-PoST (Blockchain – Protection of Stree Nidhi Transactions), a blockchain technology-based solution to empower poor women. This solution was developed by Cognitochain Technologies. Started about two years ago, the startup’s main objective is to streamline the whole process of providing loans to the unbanked and underbanked population.
Using Blockchain technology, the startup can innovatively form a consortium of all microfinance companies in turn leading to more transparency and efficiency of the system. “Through our Blockchain-enabled platform, we are looking at providing credit ratings to users and also streamlining the process of providing loans. With Blockchain, members can avail loans from other financial institutions while on the other hand, the institutions can keep record of loan disbursement and repayments without compromising on data security and privacy,” said Murali Duvvuru, who co-founded the company along with Srinivas Anala.
The platform will also do away with the concept of storing documents and records physically and they will be encrypted on the Blockchain platform and a key will be generated thus securing the personal details of the member. The company is doing a pilot of 1.5 lakh Self Help Group (SHGs) with Stree Nidhi and will continue this for at least 3-4 months.
For the next one year the startup is planning to have all Telangana-based microfinance institutions as a consortium and is also in talks with other State governments to replicate the same model.
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