Digital banking has become a vital part of our everyday life. From mobile check deposit to paying electricity bills, it is becoming seemingly more difficult to find a reason to enter a bank. Taking this new ideological form of banking and attributing it to developing markets, Matt Flannery is creating a new generation of online banking.
In 2006, Matt Flannery created Kiva, a peer-to-peer lender that pays out millions in loans to people who are unable to get help from traditional banks. These funds are distributed across 80 countries to many different small business owners and hard workers. With a new concept in mind– branchless banking– Flannery hopes to create an actual bank and create credit scores from scratch. Through small loans made over the phone, Branch can collect data on users to see how they borrow, the types of loans needed, those loans that are repaid on time and if a flexible deadline would help with receiving the payment. Flannery believes that the new funding will allow for Branch to acquire enough data, leading to the raising of large sums of money without giving up equity. With $9.2 million raised so far, Flannery’s vision seems to be en-route for success in the near future.