The new financial services platforms have embraced a good spectrum of ICOs that have been presented in recent times. These services also cover the branch of loans, and more specifically, peer-to-peer loans, which are a perfect niche for the application of blockchain technology and tokenization. This time we will talk about SOFIN, a P2P loan platform whose ICO is about to start.
SOFIN (Social Financial Network) is an online P2P lending platform. It brings together the actors of the lender activity (private individuals, banks, microfinance organizations and funds) as well as borrowers (individuals, entrepreneurs and organizations), in which the loans are issued in the fiduciary currency of the country where the borrower resides. This allows you to exchange the currency through the SOFIN token if the creditor and the borrower are from different countries.
The SOFIN team already has experience in the microcredit sector, specifically since 2011, when they carried out the “Expressmoney” project, which was launched offline and comprised 12 locations. With that experience they understood that a microfinance industry emerged in Russia.
So they continued advancing in the microfinance services but this time from an online platform, in which to apply the acquired experience. The “Loan Club” was created online (www.clubzaimov.ru). From this platform they integrated several online payment services in addition to what they had already been implementing, achieving a high quality product with good financial results.
SOFIN believes that every person in any country should be able to obtain money to improve the quality of their life. Thus, the SOFIN objective is to eliminate barriers and borders, to give access to financial resources to people from less developed countries, opening decentralized access to financing on terms convenient for both parties, not for the bank or any other intermediary. On the other hand, SOFIN aims to ensure the profitability of the investment for the creditors by moving their investment in other corners of the world through the SOFIN platform.
The reasons for requesting a loan are diverse, from credit to consumption, payment of accounts, purchase of a car, payment of mortgages, business leverage, education, medical expenses, travel, etc. Each borrower must undergo a verification procedure based on the methodology that the SOFIN team has successfully developed and tested on their previous online platform. After verification, the borrower will receive a credit rating on the basis of which the potential lender will decide to grant the loan. In all countries, a local SOFIN representative connects local scoring sources (analogously to NBCH, FSI, RPF, FSSP, etc.) for a more accurate risk assessment.
The loan is granted in the fiduciary currency of the borrower’s country in accordance with the law of that country. In this way SOFIN seeks that the lender has a clear and legitimate reason for the loan to be repaid. Additionally, SOFIN has its own guarantee fund, with which it seeks to reduce the risks of the lenders.
SOFIN transactions are stored in a decentralized storage facility based on a chain of blocks. There is also a powerful bonus model based on the SOFIN token.
The system uses the Ethereum ERC 20 platform. The SOFIN token performs many functions in the system, especially it will serve as a stimulus for the participants to carry out more transactions in the platform, as well as interactions in it. Up to 20% of the amount of each loan will be available to be granted in the SOFIN tokens. The SOFIN platform will also be an intermediary for the exchange of one fiduciary currency to another.
The SOFIN´s ICO will begin next January 15 and will last until March 15, 2018.