With the help of the ground-breaking blockchain technology which provides knowledge to overcome the barriers of traditional microfinancing, as a credit scoring and microcredit platform, Colendi has designed to provide financial inclusion for new markets of businesses and unbanked people. This aim of Colendi community is accomplished by the new sources of information about users to assess their creditworthiness through more complementary and distributed credit scoring technologies in comparison to the banks using the conventional and insufficient credit scoring methods. Accordingly, with contrast with the other credit platforms in the market, there are some considerable advantages offered by Colendi to the users, lenders, and merchants.
As it is understood from the aforementioned target of Colendi, the most significant benefit of our platform for users is its decentralized scoring mechanism. Contrarian to to the traditional banks’ methods to evaluate the credit history of customers, Colendi algorithms also consolidate the smartphone and social media data as well as transaction logs showing the repayment performance of borrowers to reach more reliable financial score for each user. So, it is possible to say that Colendi offers a particularly notable benefit for the un/underbanked population by allowing users to attain a credit score, thereby accessing the microcredits without extensive user financial history.
As the second considerable benefit of Colendi; to provide a self-sovereign and mobile credibility identity for the users with the help of its highly developed credit scoring mechanism can be shown. At the same time, since it depends on no country or central bureau, Colendi ID can be considered global. Colendi ID is users’ self-sovereign digital identity including their relevant information in a private and protected model. When you login to Colendi application, your ID is shared with the users on the network to keep your other data private. It means that access to identity parameters is only possible by user-owned smartphone and social media data. It says that your id is yours only, and your score is mobile and valid globally thanks to Colendi Blockchain network.
Another benefit of Colendi for the merchants as well as users is a chance to sell more goods and services with the installment options. The shopping process works as follows; first of all, users begin by signing up to Colendi after downloading Colendi APP and create their ID and score by permitting data access. Borrowers then may use the application at check-out to receive microcredit if their scores are sufficient. They will repay in installments either through the same merchant or paired payment service providers. All transaction details and repayments will be added as a data dimension, and all will affect the Colendi score of the user. Merchants may be the financier of the installment shopping itself; therefore no 3rd-party lender is required. This is the digital alternative for the conventional use case, where merchants provide shopping with installments opportunity to the customers they know and trust. Hence, this option stays exclusive to this particular customer group. Colendi proposes a sensible alternative to transform this approach, which will not only build a higher customer base for the merchant/lender but also provide the customer with the necessary means to access microcredit for shopping. Additionally, lenders can get the access a large number of tools and resources to make more detailed risk analysis about the borrowers in the existence of reduced costs and better resource allocation.
In parallel with the increasing shopping activity, Colendi provides financial reputation for businesses as well as individuals. Any business can use Colendi score as a reputation metric, while integration into 3rd party applications can be done easily. Global platforms such as Uber can make queries for potential drivers, while Airbnb house owners may want to see the financial stability of their guests. Carpooling services may establish an improved trust mechanism between their drivers and customers, particularly in places where such services suffer from the difficulties in carrying out a viable KYC process to develop the user trust. We believe that Colendi will contribute extensively for building a trustless society; and such services that require a high level of trust will present a great chance to deploy Colendi as a trustless and decentralized reputation metric for a wider audience.
Lastly, Colendi creates a mechanism preventing “fraud” as well as creating decentralized scoring. Both real-time and historical data are processed via intelligent algorithms in each node. Therefore, unreliable users, as well as fraud operations, are also detected instantly to enhance overall security and reliability of the protocol. As one of the main tool enhancing the security to achieve “economic finality” in Colendi ecosystem is slashing mechanism. This is a penalty mechanism for bad actors serves as an extra safety measure. Colendi introduces slashing conditions to protect each party as well as the protocol from any imposture and privacy-violating act and to enable the data integrators to provide the congruity of their networks until the completion of the validation of each persona in the ecosystem.
When we look at these advantages of Colendi platform, it can be seen that it has a global mission by forming a sharing economy from zero-knowledge decentralized database for individuals and businesses all around the world. Also, our mission can be summarized as a truly global, decentralized and democratized financial passport for everyone.