FinScore Brings Alternative Credit Scoring to DeFi With Chainlink
We’re proud to announce today our forthcoming integration with Chainlink! Through this integration, we will be providing smart contract-based lending protocols as well as the wider DeFi ecosystem with alternative credit scoring powered by advanced analytics.
This integration will allow lenders to access real-world data about their users with the FinScore Social Presence Score, one of our fraud prevention products. The Social Presence Score provides partial information about the identity, existence, and creditworthiness of the borrower, allowing better decision making for lenders and potentially reducing mandatory collateral requirements or interest rates for the crypto-backed trading of loans. The Social Presence Score is known to be a strong fraud indicator, thus allowing the lender to improve their understanding of the borrower.
We believe that this integration — one that connects real-world information about borrowers to the chain — is an important step for DeFi that will ultimately push the space forward, and we’re thrilled to be making it with Chainlink.
We, FinScore, are a world-wide pioneer in analyzing alternative data and transform it to a trusted creditworthiness information that helps borrowers and lenders in the Philippines connect in largely unbanked geography. As the DeFi movement surges forward, we want to ensure this population has access to the growing number of tools and resources available — ideally fulfilling both a company and industry-wide goal of ‘Banking the Unbanked.’
In the absence of information about borrowers, many DeFi products currently rely on over-collateralization and burdensome programmatic guarantees to protect lenders. Together with Chainlink, our Social Presence Score will allow potential DeFi platforms to offer more competitive terms to their borrowers and greater security guarantees to lenders. This is achieved by connecting our credit scoring API to Chainlink oracle nodes, which can in turn feed borrower information directly into smart contracts.
Chainlink already provides highly secure and reliable oracles to a substantial network of DeFi protocols. Identifying the creditworthiness of borrowers remains one of the foremost challenges in the crypto lending market, and by working with Chainlink our data will be able to help a wide variety of teams overcome this hurdle.
“We believe that this collaboration with Chainlink will enable us to deliver an exciting value proposition to the crypto lending market. This integration is important for us, as the market needs better decision-making without jeopardizing the data privacy and market decentralization. Chainlink will provide a key piece of our infrastructure,” said Christo Georgiev, Country Manager at FinScore.
FinScore is an alternative credit scoring company that offers a powerful credit scoring platform and fraud detection tool based on alternative data, including telco-based data. As the pioneer in lending and scoring of the unbanked in the Philippines and Southeast Asia, they continuously empower banks, financial institutions, and credit bureaus with flexible platforms to help them make insightful and reliable credit decisions.
If you’re a developer and want to connect your smart contract to existing data and infrastructure outside the underlying blockchain, reach out to Chainlink here. They can help you quickly and securely launch your data-enabled application or Chainlink Price Reference Data Contract on mainnet today. You can also visit the developer documentation or join the technical discussion on Discord. Learn more by visiting the Chainlink website or following them on Twitter or Reddit.
Chainlink is a decentralized oracle network that enables smart contracts to securely access off-chain data feeds, web APIs, and traditional bank payments. It is well known for providing highly secure and reliable oracles to large enterprises (Google, Oracle, and SWIFT) and leading smart contract development teams such as Polkadot/Substrate, Synthetix, Loopring, Aave, OpenLaw, Conflux, and many others.
Note: chainlinkecosystem.com does not claim any ownership of this content, all credit to FinScore, view official announcement.