A Blockchain based Credit Analysis Framework for Efficient Financial Systems

摘要

Blockchain the technology of the decade which has disrupted the complete technological sector and moreover has plotted its jurisdiction over almost all other industrial sectors with a significant coefficient. The credit industry in terms of credit cards and also the credit system of the financial supply chain management proves to be one of the competent use cases for the blockchain technology to be tendered upon. In the credit card-based system the structure terms to be quite complicated and also there are a lot of challenges in order to pass a credit fund to a particular customer and also there are huge processing and validation charges that are levied upon. Moreover, the financial organization which is responsible for dedicating a card to the user for smooth processing of the credit funds, also has to fulfil some tenacious check on the customers where the verification procedure lies into multiple segments to determine the pay term history, CIBIL Score and also the capability of the customer to pay out the credit funds. Also, in the financial supply chain management, the credit system is indeed one of the toughest systems to be managed as in Financial Supply Chain Management (FSCM), the transactions are not in lower dimensions of few hundred thousand dollars rather are in millions and billions. Also, in the credit system of the FSCM, the credit exposure or the limit of a particular client is dynamic and the credit limit or exposure depends upon a wide variance of factors such as previous pay term history, average days past due, average term revenue, and revenue insurance. Moreover, the analysis and the validation of the capability of the customer to pay a certain amount is quite a time intensive and depends upon variables from numerous sectors. Therefore, a blockchain based environment may allow to assess the eligibility of a customer over the order limit or credit limit that have been demanded. Hence a blockchain based credit analysis framework can be very useful for gathering information about the customers from multiple financial sectors, analysis of the eligibility of the customer to stand the credit and to calculate the credit score of the customers based on the consensus of multiple stakeholders in the network including banks, insurance agencies and other third-party financial organizations.