Forkcor

мая 08, 2018

UNION: Decentralized Lending Platform For the People

We all need help at some point in time in our life. And, in case of financial help, banks and financial institutions are the answers. They are the destinations of people who need financial help and many others services. But, getting a loan from a bank is a difficult exercise for most of us. The centralised banks have been keen on making profits rather than helping people have financial opportunities.

The long list of intermediaries and agents are another problem in getting a loan from the banks. They charge high commissions for providing their services to the people. Duplication of effort and potential of fraud are a few of the many problems associated with the current banking system. What do you think is the solution for this system? Is there any alternative system where people can easily get financial help without wasting their time?

Solution offered ( https://www.getunion.io/)

UNION is developing a solution for the lending industry by creating a P2P model of lending and borrowing based on the blockchain technology. The decentralised platform will provide security and transparency to the transactions. Cryptocurrency and fiat currency can be utilised for the purpose of lending on the platform. The first product offered by the team is called UNION Pool/ collective investment schemes in which smart contract-based schemes are automatically run for the people. This helps in the building of social capital. The second product offered by the company is called UNION Social commitments in which users can create commitment contract and get a positive score after the completion of the contract.

It helps in the development of trust among users of the platform. The third product offered by the team is UNION Lending authentication in which creditworthiness of an individual is analyzed and scored. An algorithm is designed for this purpose which scores the credit rating of an individual based on many factors. Tokenization of loans, improved efficiency, timely settlements, transparent system, lower operational cost, financial inclusion with the digital identity and Lower platform maintenance and overhead cost are a few of the many qualities of the platform.

ICO INFORMATION AND TEAM

200,000,000 UNI Tokens are created for the project in which 160 million tokens will be sold via crowdsale. The token sale will start on 1st May 2018 and continue until 29th June 2018. The funds collected from the ICO will be utilised for the development of the platform. The team working on the project is determined to develop a decentralized lending platform.

Conclusion

The traditional market for lending and borrowing is highly inefficient and time-consuming. People who need money have no option but to avail the services of the banks and financial institutions. One of the biggest challenges for the Indian financial ecosystem is the inclusion of the 145 million households into the banking system. The banks have very low penetration rates in many parts of India.

Due to the advancement in the technology and growth in the mobile adoption, it seems the total financial inclusion of the Indian population will take place in the near future. I think that they have a very big market and with the right approach and product, they can scale to greater heights. What do you think are the other solutions, which can be implemented in the context of Indian financial ecosystem?