Fighting Poverty, Profitably: Transforming the Economics of Payments to Build Sustainable, Inclusive Financial Systems

The Gates Foundation's Financial Services for the Poor program (FSP) believes that effective financial services are paramount in the fight against poverty. Nonetheless, today more than 2 billion people live outside the formal financial sector. Increasing their access to high quality, affordable financial services will accelerate the well-being of households, communities, and economies in the developing world. One of the most promising ways to deliver these financial services to the poor -- profitably and at scale -- is by using digital payment platforms.These are the conclusions we have reached as the result of extensive research in pursuit of one of the Foundation's primary missions: to give the world's poorest people the chance to lift themselves out of hunger and extreme poverty.FSP conducted this research because we believe that there is a gap in the fact base and understanding of how payment systems can extend digital services to low income consumers in developing markets. This is a complex topic, with fragmented information and a high degree of country-by-country variability. A complete view across the entire payment system has been missing, limiting how system providers, policy makers, and regulators (groups we refer to collectively as financial inclusion stakeholders) evaluate decisions and take actions. With a holistic view of the payment system, we believe that interventions can have higher impact, and stakeholders can better understand and address the ripple effects that changes to one part of the system can have. In this report, we focus on the economics of payment systems to understand how they can be transformed to serve poor people in a way that is profitable and sustainable in aggregate

Study of consensus protocols and improvement of the Federated Byzantine Agreement (FBA) algorithm

At a present time, it has been proven that blockchain technology has influenced to a great extent the way of human interaction in a digital world. The operation of the blockchain systems allows the peers to implement digital transactions in a Peer to Peer (P2P) network in a direct way without the need of third parties. Each blockchain determines different rules for the record of the transactions in the ledger. The transactions are inserted in blocks and each one, in turn, is appended to the chain (ledger) based on different consensus algorithms. Once blocks have been inserted in the chain, the consensus has been reached and the blocks with corresponding transactions are considered immutable. This thesis analyses the main features of the blockchain and how the consensus can be achieved through the different kinds of consensus algorithms. In addition, a detailed reference for Stellar and Federated Byzantine Agreement (FBA) consensus protocols is made in order to explain these algorithms, their limitations as well as their improvement. The development of a reputation mechanism is necessary to the improvement of above algorithms

Description of the Chinese-to-Spanish rule-based machine translation system developed with a hybrid combination of human annotation and statistical techniques

Two of the most popular Machine Translation (MT) paradigms are rule based (RBMT) and corpus based, which include the statistical systems (SMT). When scarce parallel corpus is available, RBMT becomes particularly attractive. This is the case of the Chinese--Spanish language pair. This article presents the first RBMT system for Chinese to Spanish. We describe a hybrid method for constructing this system taking advantage of available resources such as parallel corpora that are used to extract dictionaries and lexical and structural transfer rules. The final system is freely available online and open source. Although performance lags behind standard SMT systems for an in-domain test set, the results show that the RBMT’s coverage is competitive and it outperforms the SMT system in an out-of-domain test set. This RBMT system is available to the general public, it can be further enhanced, and it opens up the possibility of creating future hybrid MT systems.Peer ReviewedPostprint (author's final draft

Factors influencing branchless banking for microfinance in Sudan: Theoretical perspectives and future directions

In Sudan more than 40% live below the poverty line and getting basic financial service poses a challenge to financial institutions. Most of these unserved populations live in far-flung areas that make it difficult for microfinance institutions to reach them. But the enormous growth of mobile technology industry has created new opportunity to expand financial services to this unserved population. Branchless banking is one of the latest technologies that have been employed in different developing countries to expand financial services to the unbanked poor. Despite the potential benefits and relevance of Branchless banking to Sudan, there are still very few studies on Branchless banking in Sudan. To address this gap in the literature, this study aims to investigate the factors that are essential to the development of branchless banking in Sudan using mobile technology. This is a research-in-progress paper, the critical review of the literature so far revealed that there are essential factors for the success of branchless banking in Sudan e.g. the identification of the industry key players and their roles, the enabling regulatory environment, the infrastructure readiness and Sudanese cultural values. The paper will provide regulators and policy makers in Sudan a way forward to expedite the development of suitable Branchless banking for microfinance in Sudan

Compensation methods to support cooperative applications: A case study in automated verification of schema requirements for an advanced transaction model

Compensation plays an important role in advanced transaction models, cooperative work and workflow systems. A schema designer is typically required to supply for each transaction another transaction to semantically undo the effects of . Little attention has been paid to the verification of the desirable properties of such operations, however. This paper demonstrates the use of a higher-order logic theorem prover for verifying that compensating transactions return a database to its original state. It is shown how an OODB schema is translated to the language of the theorem prover so that proofs can be performed on the compensating transactions