When it comes to the global lending market, there is one segment in particular that lacks transparency, i.e. lending between individuals (usually relatives, friends and acquaintances)👥Although similar in size to the formal lending market (banks, credit card issuers, mortgage lenders, leasing providers), there are significant differences between the two. Now the volume of the informal lending market is about $ 1 trillion per year 💰The LendsBay system creates a new approach to loans between people, solving the problems such as:⠀❌ No formal loan records: disputes arise about repayment dates, terms and conditions; no reminders are sent❌ No contract: there is no mechanism for judicial enforcement of debt repayment❌ No credit history, which can have an impact on a borrower’s ability to obtain subsequent loans❌ No integration with the formal lending segment: behaviour in one segment does not affect financing conditions in the other❌ No market-based mechanism for determining interest rates: the market is either larger or smaller than its potential❌ No tools for risk management: no credit rating, diversification, insurance
⠀⠀We offer the following step-by-step solution to the above-mentioned problems:
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1️⃣ Creating an app to manage loans between relatives, friends and acquaintances: the app is used to find a lender and then to record, document and administer (e.g. send out reminders) the loan.
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2️⃣ Creating social groups (so-called bays) to pool financial resources through mutual lending, e.g. there are social groups centred around work, universities and social clubs that already have a certain level of trust, common values and a high degree of social control, not to mention little tolerance for irresponsible behaviour.
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3️⃣ Creating a blockchain to store individuals’ credit-rating information (LBR)
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4️⃣ Using the blockchain for any financial transactions between individuals (non-credit assessment) (LBU)
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5️⃣ Developing the elements of an ecosystem for financial relations: mutual insurance; purchasing, selling or leasing items; and decision-making systemsLendsBay team have already developed a functional and ready-to-use alpha version of the application 📱⠀⠀
