With several financial institutions around the world running various credit schemes, many people have been able to benefit from it. The rich, most especially have enjoyed the open door access to credit. The poor on the other hand struggle to secure credit. This is because of the fact that major financial institutions market their credit schemes to the working class segment of the society. The belief is that for anyone to access credit and loans they must be earning enough money. Helpful information is not distributed equally among people who need these credit loans as well as the financial institutions. Because of the intricacies involved in the collating and verifying of data, most credit operators find it difficult to deliver due to the often times questionable information they have access to. Barriers like data falsification, tampering with information as well as missing data are some of the obstacles that financial institutions have to resolve using various algorithms and comparison of several data sources in order to ascertain the validity of data provided before granting credit to applicants.
Although financial institutions in many countries have different approaches to tackling these data hitches, several factors, including regulations from the government, available informal labour or prevalence of poverty will ultimately determine the quality and quantity of information acquired. Countries with high standard of living may also pose a stumbling block as the cost to access such data is usually high. The effect of this is now distributed on the high cost of borrowing, lending and credit access. There is also the problem with data hoarding where some institutions secretly hide certain information regarding their own clients’ financial adventures but provide such information for major corporations at a significant price. The clients won’t be privy to the sale of their data and so won’t get any proceeds from it because of their lack of knowledge. Swapy Network aims to create a balance where data is easily accessible and cost of acquiring credit is lower for all parties involved.
Using a peculiar decentralized system, Swapy Network will fuse all parties involved in the financial market including creditors, borrowers, data producers, data consumers, insurers and many more to connect with one another in a distinct ecosystem so as to rapidly influence a reduction in the cost of financial services. This move will also engineer the participation of debutants in the financial sector giving room for healthier competition. The decentralized platform by Swapy Network will be accessible to only those who hold SWAPY tokens and patrons will benefit from it by getting access to full information required by all parties as they share a common data network.
Upon successful implementation of the Swapy Network decentralized platform, the problem of getting access to credit will be solved as the participation of all parties involved in the financial market will trigger offers of credit as a move to lower the costs of capital. Accurate data will be available and credit companies will find it easier to make wise lending decisions. This can also ripple down to their clients who will end up getting lower rates. As it becomes easier to setup due to its lower cost of capital, new companies can get into the market without hassles and even have access to high-quality data that won’t have been possible before Swapy Network. For more information you can check out Swapy Network’s website and whitepaper below.
Website - https://www.swapy.network
Whietpaper - https://www.swapy.network/SwapyNetworkWhitePaper-English.pdf
BH - Coltpython
