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