Holistic Credit Rating System for Online Microlending Platforms with Blockchain Technology
The inexorable rise of the Internet has given traditional microlending facilities a new online platform where people from any part of the world can lend their money to those in need of it. With the risk of defaults being tremendously high in comparison to traditional financing, there is an utmost need for the platform to be transparent and trustworthy. Keeping this in mind, we propose a model which is based on the blockchain technology and uses a holistic rating system to rate both the borrower and lender instead of the generally used rating of the Microfinance Institutions (MFIs) or Field Partners (FP), which act as intermediary and have a tie-up with the online peer-to-peer platforms nowadays. This proposed model provides security along with openness in the system and can be integrated into the existing systems for a more efficient system.
KeywordsMicrolending Peer-to-peer Naive bayes classifier Blockchain Hyperledger fabric
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