How blockchain tech is making an impact in a challenging credit market
The credit market might be challenging at times — but blockchain technology can bring borrowing and lending into the 21st century. Surging interest rates and a challenging economic climate are making it difficult for individuals and businesses to access credit. In emerging markets with a high proportion of unbanked people, such issues are nothing new. Consumers who lack accounts with a financial institution often struggle to apply for loans at competitive rates — primarily because they lack a credit rating. As a result, wary lenders increase the cost of borrowing to applicants perceived as risky. It’s a vicious cycle — a chicken-and-egg situation. You need a reputation to access credit, but how can you build an application without a lender taking a chance on you? Other pain points exist as well. Even self-employed entrepreneurs with access to a bank account can struggle to borrow funds — all because their income may fluctuate from month to month. In some countries, the application p...