FinScore announced integrating Chainlink to its system as a way to provide alternative credit scoring. It will use smart contract-based lending protocols next to that feature to gro the DeFi ecosystem. The main reason for integration is to give access to reliable real-world data to lenders in FinScore.
More Reliable Credit Scoring
FinScore is a company that provides financial services based on alternative credit scoring. It uses various security tools and features like telco-based data.
The Philippines and Southeast Asia are the main markets for FinScore in which it provides lending and credit scoring to unbanked people. Integrating the system with Chainlink will help lenders in FinScore have real-world data about their users within FinScore Social Presence Score.
The Social Presence Score is a fraud prevention product that provides information such as identity, existence, and creditworthiness of a borrower to the lender.
“We believe that this integration — one that connects real-world information about borrowers to the chain — is an important step for DeFi that will ultimately push the space forward, and we’re thrilled to be making it with Chainlink,” sais FinScore in the announcement post.
FinScore tries to lessen the collateral procedures for lending and borrowing. Many DeFi products now rely on too many collaterals to guarantee the borrower. All of this is done to ease the mind of the lender.
FinScore wants to use reliable and secure data from Chainlink’s oracle to provide more security guarantees to lenders. It will connect its credit scoring API to Chainlink oracle nodes, which results in feeding borrower information to the lending smart contract.
The partnership between FinScore and Chainlink is focused on user’s privacy, too. Integrating Chainlink’s oracle lets FinScore develop a more secure and private lending infrastructure.
“We believe that this collaboration with Chainlink will enable us to deliver an exciting value proposition to the crypto lending market. This integration is important for us, as the market needs better decision-making without jeopardizing the data privacy and market decentralization. Chainlink will provide a key piece of our infrastructure,” said Christo Georgiev, Country Manager at FinScore.
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