Blockchain technology has been hailed as a breakthrough to more secure and open digital transactions. Its iconic features, including validity checking and security improvement, have become an integral part of many types of businesses, from professional consulting to medical services, online gaming, and e-commerce. Considering that one of its speciality is providing security to data and information, it is only a matter of time before blockchain technology is brought into the lending industry.
It has been publicly known that financial institutions always rely on the validity and accountability of applicant’s data and documents before proceeding with the analysis for any loan application. This is because these financial institutions want to make sure that they lend their money to reliable and accountable applicants to prevent any loan being written off as a bad debt.
Realizing that data checking and validation becomes the main requirement for any financial institution in granting a loan application, The Deal Coin capitalize on the situation by integrating the blockchain technology into its online platform. Thanks to the integration, users of The Deal Coin could easily validate any information of the other parties they intend on making a deal with. Take the financial institutions for instance.
They could now be more assured that the applicants who apply for their loan program are all reliable and accountable before they could continue with analyzing their applications. As for the applicants, they could get the accountability and transparency from the analysis process of their application. It is a win-win solution for both sides.
Considering that lending programs are usually being based on fluctuating interest rate, customers rarely get valid information as to why the certain rate is determined. This creates anti-trust towards the financial institutions that lend them the money. They may have the idea of being robbed by these institutions through the high-interest rate scheme.
The integration of blockchain technology into The Deal Coin platform helps to reduce this potential scenario. Customers could, at any time, monitor the most updated situation of the interest rate in the market to obtain the latest prediction on the amount they have to pay as interests. This would add more confidence to the customers to the extent that they know they are not being deceived by the financial institution they loan the money from.
The adoption of blockchain technology could also save the players of the lending industry from financial crimes like money laundering and theft. This is because every data and information uploaded into the system could be checked and validated by not only the involved parties but also by anyone connected to the internet. This creates an open security system in which everyone could participate in keeping confidential information confidential.
Considering the benefits that blockchain brings in its integration with The Deal Coin, I believe that the platform could boost its popularity and attractiveness among players in the lending industry. This advantage should be capitalized as best as The Deal Coin team could.
