CashDab introduces true game-changing borderless, seamless and cost effective financing.
How will CashDab encourage new users to take up credit lines with our application?
We highlight some of the borrower products to be implemented:
Each borrower will be able to set their loan amount plus interest rate manually or have automated guidance rates based on loan type, location, occupation, income and initial credit ratings. If they want access to advanced products, different levels of account verification will unlock more features such as higher margin amounts, specific financing which requires more than basic verifications etc.
Loan products initially available will be micro, personal, home renovations, education, invoice and working capital loans. Car financing, mortgages and larger value loans will follow upon funding requirements.
CashDab’s innovative credit rating and KYC tokenisation:
Every successful repayment will be issued a blockchain token (“DAC’), which will be used as a borrower incentivise to reward them by improving their own blockchain credit rating. This is used for counter-party credit risk assessment by lenders, eg, the more DAB tokens a borrower owns, the better credit rating, of which there will be various uses covered below.
More tokens will allow higher loan values and higher capital lenders will be matched, eg. SME & corporate loan, invoice financing etc. As this personal credit rating token is stored on the immutable internet blockchain, it can used to prove their personal financial track record across country borders, if a user migrates and needs to provide personal financial data for car leasing or mortgage application.
This was not previously possible due to centralised credit information silos and distrust amongst segregated intermediaries. With CashDab’s decentralised global intermediary, credit ratings and KYC for each borrower will be globalised via significantly less intermediaries, which will result in cost and time savings.
DAC tokens can traded between users for the purpose of increasing security collateral for improving their credit rating, with the trade off of decreased credit rating.
Tokens themselves are mined so they have intrinsic value for borrowers as well lenders security collateral. We will advocate to financial institutions to recognise DAC tokens as a robust and secure way of assessing borrowers as part of CashDab’s decentralised global intermediary, credit ratings and KYC push.
Lenders and borrowers remain anonymous to each other as they as communicate entirely in CashDab without race, location, gender or historical bias. What they will see are the necessary information to make an unbiased and guided investment decision. The entire loan processing speed will be increased significantly compared to existing P2P loan funding as CashDab provides real time guidance and high data accuracy due to our blockchain architecture.
This is especially crucial in emerging markets as banking access is limited, but economic growth rates are typically many times higher then developed markets.
If required, each user’s credit rating and KYC data stored in CashDab can be revealed according to each user’s discretion, bearing in mind that release of sensitive personal data is discouraged as CashDab is meant to work seamless and anonymously.
DAC token usage:
Improving credit rating: CashDab’s decentralised credit rating system is based on the amount of DAC tokens a borrower has, whether it was earned from loan repayments, or purchase of them.
Payment of future loans: DAC tokens can be used for future loan repayments
Secured loan collateral: DAC tokens can be used as security to access higher gearing loans
Lender funding: DAC tokens can be used for funding loans, if the borrower wishes to borrow in DAC.
This blog post is part of a series of articles leading up to CashDab’s white paper.