In most of Asia, Microfinance (MFI) has played a critical role in providing much-needed finance to female entrepreneurs, who historically have had little access to formal credit. In addition, MFI uses technology to provide essential financial services to remote regions, a phenomenon that has helped deliver independence to borrowers and lifted millions out of poverty.
While the fault line has been forming for some time, it is about to turn into the Grand Canyon with banks on one side, and tech companies on the other. As of January 2018, the Second Payment Services Directive (PSD2) regulations come into effect across the European Union enabling businesses and customers to use third-party providers to manage their finances.
India has the third largest start-up ecosystem in the world, behind the US and China in terms of number of start-ups registered each year. However, the quality of start-ups leaves a lot to be desired as a sizeable number of start-ups in India fold within the first two years. The take away message from investors is that start-ups need to show clear value creation.
We chatted with a kind-hearted and accomplished founder and CEO of Star Mountain Capital Brett Hickey, who took a community of care culture from a small town in Northern Canada and translated it meaningfully and with purpose to create one of the leading lower middle-market investment firms in New York City.