In a collaborative effort, the United Nations Development Programme (UNDP), the Monetary Authority of Singapore (MAS), the Bank of Ghana (BoG), the Global Legal Entity Identifier Foundation (GLEIF), and the SME Finance Forum launched the Universal Trusted Credentials (UTC) initiative.
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This initiative is designed to enhance access to financing for micro, small, and medium-sized enterprises (MSMEs).
The UTC initiative introduces a comprehensive framework that evaluates the financing worthiness of MSMEs by considering both traditional and alternative data sets, namely source data and derived data.
Additionally, the initiative will concentrate on empowering MSMEs, and fostering collaborations in key emerging markets to enhance access to data and financing.
Sopnendu Mohanty, Chief FinTech Officer for MAS, highlighted the transformative nature of the UTC, stating that it “represents a game-changing opportunity to augment the traditional collateral or asset-backed financing that almost all MSMEs face, towards a holistic approach that includes self-owned non-financial and financial credentials that each MSME should possess.”
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