Asset Financing Solutions for Regional Bank | Virtusa

The Challenge

The Bank had to reject customer segments who did not have enough credit history
When it came to asset financing there wasn't enough information on the performance of the assert

The bank asked for an MVP that envisioned a lending market place using Blockchain, Algo-lending & IoT

The Solution

Internet of Things (IoT) enables information on the health and performance of the asset, thereby it allows banks to extend loans to individuals who might not be eligible otherwise. Idea Summary:

Data from the asset to be captured by IoT and the health of the asset to be assessed
This allowed the bank to reward 'good users' and penalize 'bad users'
A contract to be written on a blockchain and hence the rules would be executed automatically

The Solution

The Results

The bank increased the size of its customer base by providing loans to new segments with no previous credit history