Marketplaces have information about 'real and genuine' transactions of buyers and seller - can this be used to raise financing from Banks and other financial institutions - both for consumer and corporate credit?
Hi Angel.. the idea is to be able to use information on transactions of buyers and seller to raise buyer and seller finance from banks. Banks do not have access to real information on transactions except through documents like LCs, BGs, etc. other financial instruments to understand the transactional history hence credit quality of the borrower. If the banks can access marketplace information from the marketplace operators, this information can become a basis of extending short-term credit to companies or individuals that transact on this platform.Short term credit extended by banks to businesses specially micro-finance is primarily just based on unverifiable information but marketplaces provide a unbiased, credible and quality information on transactional history and hence capacity of borrowers.