Peer-to-Peer Lending Fintech Application: Relevantz Approach
In today’s modern economic-centred world, peer-to-peer (P2P) lending networks offer borrowers access to loans with lower interest rates and higher returns for investors. However, there are several concerns related to security, transparency, and trust in these networks.
Blockchain technology has emerged as a potential solution to many of these challenges, providing increased security, transparency, and trust. This technology can also help reduce fees and make it easier for lenders and borrowers to connect with each other.
In this blog post, we will see how Relevantz helped a P2P lending Fintech company address these challenges by taking advantage of blockchain technology.
Customer: Peer-to-Peer platform for microloans
Lendwill is a peer-to-peer lending platform on the web and mobile devices. With the help of this platform, users may borrow and/or lend small sums of money, all while building a verifiable credit history on a blockchain.
How Design Thinking and PoV helped?
Before diving into the solution, we wanted to take a step back and understand the business vision deeper. We conducted a design thinking workshop which brought forth many different approaches, Identified appropriate technology choices, and even future monetization ideas.
We architected the solution with immutable storage of trust score and greater traceability as unique values. These trust score values are shareable with trusted entities whenever required. The Proof of Value model gave the client a clear visibility and go-to-market strategy to acquire a solid customer base.
Relevantz’ solution approach
In this modernised solution, we used the advantages of Open Banking APIs thoroughly to integrate with every Norwegian bank through PSD2 standards. To securely store and present trust scores transparently, we implemented a scalable distributed blockchain architecture with a decentralised data store as Ledger Standard. For better efficiency, the automation in operations enabled real-time settlement and auditing in reduced processing times.
We built a cloud-agnostic smart-contract-based ecosystem to interact with the Hyperledger Fabric blockchain network. Kubernetes is used to deploy the application with on-demand scalability and intensive performance.
Business Benefits of Blockchain in P2P Lending Fintech
Cost-effectiveness: The overhead expenditures are reduced through smart-contact automation. The transaction costs for validating the reliability of participants in the network are lower.
Increased Trust: The investors trust the network of borrowers only through their score. It enables them to invest on this platform without any risk of loss.
Scalability with multiple partners: The architecture is open to adding more business entities for endorsements and partners to claim the benefits of the trust score.
Summary
The fintech industry uses trending technologies such as blockchain and smart contracts to ensure the best value to its customers. Insuretech, Loans, mortgage lenders, wealth management, and payments are using blockchain for speed and convenience in transactions.
Many countries have already adopted digital transactions in their financial roadmap. Digital ecosystems require security, scalability, and traceability to gain confidence in the network of people. Our experience shows that blockchain is agreeably suitable for the future of Fintech and many other industries.
Wondering how your business can benefit from blockchain? Feel free to connect with us; we can help explore and enlighten you!
What Relevantz Can Do for You
We have a wealth of expertise in the blockchain, from implementing payment solutions to building distributed apps for financial services enterprises. Relevantz can assist you in enabling blockchain, tokenization, smart contracts and use cases for digital assets that will meet the expanding demand of your business.
Are you interested in enabling enterprise-grade blockchain in your business?
