LendSwap Founder Says AI Tech Can Fill Lending Gaps In Emerging Markets

Recently, the World Bank estimated that there were 1.4 billion unbanked and many more underbanked people globally. The lack of access to financial services is a significant burden for underserved populations, making it harder to get loans and bridge financial gaps, which hurts personal finances and makes it harder to escape poverty.

Lack of access to capital in markets in areas such as Africa, most of Eastern Europe and some parts of Latin America, the Middle East, Russia and Southeast Asia also makes it harder for businesses in these markets to grow. According to the United Nations, “micro, small and medium enterprises (MSMEs) account for 90% of businesses, more than 70% of employment and 50% of GDP worldwide.”

Alex Vert, founder of LendSwap, says web-based solutions incorporating Artificial Intelligence (AI) can help break the cycle of deprivation, bring more people into the global financial system, and ultimately help individual businesses grow in a way that better positions growth.

“Traditional banks often find it unprofitable to offer certain services, such as microloans, or they face regulatory restrictions that prevent them from doing so. LendSwap fills this void by providing access to financial services that would otherwise be unavailable,” Vert said.

Emerging economies like Vietnam, Mexico, Nigeria and India hold significant potential but remain underserved by traditional financial systems. According to the World Bank, over 65% of individuals and small businesses in these regions face financing constraints due to collateral requirements, slow approval processes, high interest rates, and unsustainable repayment terms.

Decentralized digital currencies, most prominently Bitcoin BTC/USD, tend to gain popularity during global economic and political uncertainty as institutional and retail consumers look for a safe haven, independent of the state where they can store value. Vert sees the world as ready for decentralized financing, even in emerging markets, as the Web2 world evolves into Web3.

“We see this shift toward a decentralized, AI-powered financial system as overwhelmingly positive. An open liquidity market will unlock millions of new users for Web3, reduce fees, improve transparency, and make blockchain-based finance an integral part of everyday life through continuous innovation and new financial tools.”

LendSwap uses AI to streamline the loan application, approval and disbursement processes. AI-driven risk assessment models make quick approvals without the need for human intervention. Approved loans, in turn, trigger the instant release of funds.

“We firmly believe that the future of financial services will be centered around Web3. While traditional banks and NBFIs already use AI, these institutions remain opaque, charge high fees, and are burdened with bureaucratic inefficiencies and liquidity costs. Web3 eliminates many of these issues, making it the logical evolution of the industry,” Vert says.

LendSwap says it serves over 11 million customers with a projected goal of reaching 100 million users in the next two years, with the majority of growth in India and Nigeria.

While large tech markets like the U.S. can focus on more specialized use cases like GameFi and memecoins, which address a need for speculation and entertainment, emerging markets have the most substantial need for blockchain services to fill the gaps in traditional financial services.

Liquidity and payments may not be the most disruptive use cases in concept. Still, they are the global use cases most likely to improve users’ lives. A borderless, inclusive financial ecosystem is better for everyone and will ultimately help drive economic progress in markets everywhere.