Credito – Blockchain to prevent fraud in finance
The future of financial services is on the blockchain. As credit and financial services become more decentralized as a result, what assurances can we have that transactions aren’t fraudulent?
Credito has developed an innovative approach to this dilemma, utilizing AI, Predictive Analytics and big data to offer real-time intelligence that far exceeds the current centralized model in terms of accuracy and reliability.
Credito’s founder, Srikar Govindarajula, was inspired to launch this exciting new service when he discovered that he could beat the margin of visa in supporting the number of high-speed transactions, but with far fewer resources at his disposal. His new model, built on the Ethereum blockchain, offers a platform for a dynamic new system for credit scoring, as well as the next generation of anti-fraud protection.
The Credito platform will offer three core services-
Credit Risk Management
Credito’s Global Financial Intelligence Network will score transactions based on the risk that the transaction is fraudulent. The current anti-fraud system is not fit for purpose and will be hopelessly unable to cope with the decentralization of the financial world.
Credito’s data will be global and instantly shared within the network, so that patterns are identified immediately and instantly communicated, thereby keeping the system one step ahead of fraudsters.
The dominance of the big three credit rating agencies has had a catastrophic effect on the global economy. The financial crash of 2008 was a result of the power of these agencies and their collusion with the banking system. The financial world as it now stands favours the rich and powerful, and credit invisible cannot hope to access loans to start new businesses or purchase the property.
Credito will break this circle of wealth begetting wealth by including the credit Invisibles, decentralizing the credit scoring system and using fairer metrics to determine credit scores. Currently, the centralized system assigns the same credit risk to a transaction of $10,000 as it does to a transaction of $100,000. Credito will offer individualized scores based on realistic models and up to date data.
The platform is ideal for providing a marketplace for low-risk affordable loans, offered peer to peer on the blockchain and collateralized by Credits, the cryptocurrency supporting the platform. With an already trusted safety and credit scoring system in place, lenders and borrowers will feel confident that this platform can provide an efficient and adaptable marketplace for credit transactions going forward. The decentralized nature of the marketplace will keep costs low and offer real competition for traditional financial services.
This three-pronged system will help Credito become the go-to platform for financial services, as traditional high street banks find ways of adapting to the pressures of the decentralized market. The service will benefit ordinary borrowers, who are tired of being turned away based on faulty, inaccurate credit scores, and lenders concerned about the security risks of the lending marketplace.
Get involved in the discussion on their Telegram.
Below are important Credito resources:
Official Website: Website
Credito Blog: Click Here
Credito Telegram: Click Here
Whitepaper: Click Here
Twitter and Facebook
Source: Read Full Article
Leave a Reply
You must be logged in to post a comment.