Credit NGOs' sustainability in rural financial market: a SWOT analysis on DAYBANG

Purpose - The purpose of this paper is to analyze the sustainability of Credit Non-Governmental Organizations (CNGOs) such as DAYBANG.Design methodology approach - This paper investigates and describes the operating details, through the web, of DAYBANG using SWOT analysis.Findings - By the means of SWOT analysis it is found that clarified information, credit scoring system and the law of large numbers set up by DAYBANG will decrease the asymmetric information influence, which will result in adverse selection and lowering of the transaction cost; while operational risk and moral hazard are the weaknesses to be overcome. SO, ST, WO, WT strategies deserve consideration.Originality value - Researches on informal finance have focused on loans between relatives, friends and usurers. Few literatures, however, have studied the Credit NGOs (CNGOs). DAYBANG is a newly-emerging CNGO which has resulted in immense public interest because of its Web operating platform. This paper discloses its operational characteristics, using SWOT analysis, which expands the research on informal finance.