ARYZE CFO Morten Nielsen was invited to discuss ARYZE on the 8topuz podcast with Anthony Munns. Nielsen covered how Digital Cash will solve the four pillars ARYZE focuses on; credit and market risk, remittances, financial exclusion, and anti-money laundry, and also explained how ARYZE eliminates some of the biggest issues for NGOs working globally. Through ARYZE’s solutions, donated funds can finally be restored and reach local projects worldwide. Digital Cash becomes available for everyone, everywhere, at any time.
Non-governmental organizations working internationally face many implications in their daily practices when it comes to utilizing money. Within their organizations, a large amount of cross-border payments is needed to be made to get resources to local projects. In this process, significant money-losses occur due to high fees and many intermediaries. On top of that, NGOs face the extremely slow flow of money through different silo systems that are unable to work together efficiently. When money urgently needs to reach certain projects, traditional banking services stand in the way of making this happen. ARYZE CFO Morten Nielsen says:
Imagine a situation where an NGO is working in an emergency situation in Africa and the team needs to pay for some local services, for example, assistance at the field hospital, or local equipment like blankets or bed. How do you get the money to them? The NGO has to transfer money from an account somewhere in the world, to their head offices somewhere in Africa who transfers it to local brands, and then someone picks it up in cash.
Moving money through all these intermediaries is expensive to do, but becomes even more costly when it involves sending money to developing countries. In this instance, another two to five percent worth of fees is subtracted from the money that is transferred. With ARYZE, NGOs won’t experience these losses and can be assured of all funds reaching local projects in real-time. Through the MAMA app and integrated technical solutions, money can be transferred to employees working locally, from smartphone to smartphone. Money becomes available at a fraction of a second.
Transfering Digital Cash via the MAMA app
So, what would this look like? Nielsen explains:
Let’s say an NGO needs to buy equipment for one of their local projects. First, we onboard the NGO as a corporate client which will give them a dashboard where they can manage all their different employees and the amount of money that is sent to the wallet of each employee. This means the money becomes available to use locally.
Then the local equipment supplier can download a corporate version of our app with a connection to the NGO that wants to transfer money to that account. By this time, we have already done a lot of our KYC onboarding process by knowing that there is a legitimate reason for this client wanting to be onboarded on our MAMA app. The local supplier will get the transferred money of the NGO without any losses in fees.
Another issue arises for organizations that aim to provide microfinance solutions as they struggle to get their money out in places that need it the most and where financial means can make a difference. Their business plans and intentions are well-considered, yet the simple issue of getting money to local households and businesses in remote and poor areas hinder these initiatives.
Often these people do not have a bank account and will therefore not be able to receive any money to start a business or project. ARYZE can solve this and give these people a bank account and access to financial services. This way, NGOs aimed to provide financial means to local business owners and households, now will be able to get the money to where it needs to go.
This also becomes available through the integration of blockchain that ARYZE’s services offer. ARYZE creates direct blockchain extensions from its database, allowing users to have a digital representation of central bank money based on blockchain technology. Now, people can develop all kinds of tools and applications that link to the blockchain space aimed at anything within microservices or micropayments. The design for new infrastructures makes money flow more efficiently to reach communities in need.
ARYZE’s solutions will restore the funds donated to NGOs to be fully invested in local projects world-wide. From the beginning, ARYZE’s mission has been to have a social impact on a global level, to include the financially excluded and make money flow to where it is supposed to. This will be made possible through ARYZE’s highly efficient cloud-native banking software, corporate dashboards and blockchain integrations, improving payments for all.
Our next article in this series will explain how ARYZE supports the development of innovative projects through their ambassador program. Stay tuned for this if you like to learn more about the program and academy, and how you can become part of it.