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PayPie: Credit Risk Assessment based on Blockchain Accounting

Sep 9, 2017 AltcoinsBlockchainICOInsights 0

In the world of business, a credit score is required for a company to receive credit funding for growth or debt payments and to gauge the reliability of the borrower. Experian, Equifax and TransUnion are the current leaders in the industry for calculating credit scores. Each bureau collects and verifies information from different sources such as vendors, banks, data-gathering trade associations and business credit card issuers. These bureaus determine a business’ credit score using various factors including: number of accounts held, current available credit, payment history and the length of your credit history. However, these bureaus do not directly take into account a company’s financial statements when calculating their respective credit score.

Problem:

  • Fraudulent and inconsistent data entered into a company’s accounting systems 
  • Financial data inconsistencies from external sources due to third party verification of the data

We now have the Blockchain and PayPie to eliminate the lack of transparency from a company’s financial statements.

PayPie, the world’s first credit risk assessment based on Blockchain accounting, enables trust and transparency with a unique “Credit Risk Assessment Score” for businesses worldwide.  – PayPie

Their service offers a more accurate, faster, safer and cheaper lending platform alternative to the current legacy systems employed by most of the banks, lenders and invoice factoring companies.

Solution:

  • Decentralized single ledger approach, with the inputs being bound to the Blockchain in a triple entry accounting structure
  • Performs a real-time audit and analysis of a company’s financial statements on the Blockchain
    • With consideration on historical accounting information of participating businesses

PayPie will secure the entire transaction-checking process between businesses which in turn will generate reliable and unbiased financial data. By having both Company A and Company B report their accounting on the Blockchain, the process for companies being compliant with the tax authorities during audits will be streamlined. Furthermore, real-time and accurate credit scores will be calculated and the decision whether to provide credit and the exact amount available for approval will be seamless for both Company A and B.

In conclusion, PayPie is the first finance technology to develop a credit risk profile for a business on the Ethereum Blockchain. The credit risk calculation is based on an inbuilt algorithm that constantly adjusts to live financial data that includes more than 150 data points. With the PayPie platform, it will transform the way credit risk is assessed by lenders, investors, banks and other financial institutions. PayPie will challenge the status quo of existing institutions such as Experian, Equifax and TransUnion, whom already hold a large share of the credit risk market.

Additionally, It offers companies to become financially transparent and ensures smooth business transactions. This in turn will increase the efficiency of business conducted between various parties which will promote economic growth by allowing the compliant and profitable companies to succeed.

Make sure to follow our ICO calendar to know about PayPie’s upcoming crowdsale on October 15, 2017. Newsletter subscribers will get a notification prior to PayPie’s crowdsale opening.

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Davit K

Davit is a corporate development professional at one of Canada's largest FinTech companies, responsible for strategic planning and execution of M&A transactions. He spends his free time traveling and writing about new developments in blockchain and crypto currency world.

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