We’ve taken great strides as a society. Despite these gains, social mobility remains stagnant. Three billion humans cannot access basic credit services; and fewer than 9% of citizens in developing economies have ever taken a loan from a financial institution.
In countries rich and poor, access to credit is a fundamental cornerstone of social mobility. No matter your age, gender, language or nation, credit is the key driving force to boosting prosperity. From looking to buy a first home, to starting a small business, virtually every human on the planet depends on credit. It is the gateway to financial inclusion and ultimately financial freedom.
Credit issues are not limited to developing economies. Ninety percent of top lenders in the United States use the FICO score yet leaves over 45 million Americans with no credit score. In the United States, the most developed economy on the planet, millions of creditworthy borrowers are denied the right to own a home, start a business, or reach financial stability thanks to artificial scoring limitations imposed by central organisations.
In China, your credit score is affected by your political opinions. France, Portugal, Spain and the Nordic countries do not have credit scores, opting to only report negative information to your file.
In the United Arab Emirates, religious restrictions on lending have prevented the development of a consumer credit reporting system. In the United Kingdom, you will have trouble getting a high credit score if you are not registered to vote.
Despite the fact that these inefficiencies squander the potential of billions, nobody questions the status quo of credit. In a world of globalisation, the credit industry is far from global. You should not have to rebuild your credit from scratch when you move to a new country, or be forced to take out dangerous, informal loans.
Governments should not lower your score because of your political affiliation, or require that you register to vote to have a high score. Individuals should have alternative ways of showing creditworthiness beyond incurring a high amount of debt. Three billion people around the globe deserve to have access to basic credit services.
This is the reasoning behind Bloom. That's their logo at the top.
Built on Ethereum and IPFS, Bloom brings credit to the modern age. It is an end-to-end protocol for identity verification, risk assessment and credit scoring, entirely on the blockchain. Bloom is not a lender, but a platform.
Bloom is a standardised, programmable ecosystem to facilitate on-demand, secure, and global access to credit services. Bloom offers solutions to cross-border credit scoring and identity fraud while at the same time expanding credit globally to 3 billion new individuals and improving scoring methodology for all 7 billion people.
Bloom is a platform to migrate all lenders to the Blockchain. From mortgage providers to local credit unions, lenders across the globe will be able to tap into a far more comprehensive credit database and expand their market to three billion new borrowers.
Bloom could well be the future of credit.
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