Microloan origination

Microfinance has a beguiling simplicity and a record of success mostly in promoting financial resilience. At its lowest level, microfinance is considered as a form of insurance, where repayment is high. At the next level, which many participants never aspire to, it might involve borrowing to start up a small enterprise, or to expand an existing one.

The microloan origination pilot will be based on an online origination platform that leverages on independently verifiable identity attributes to approve microloan applications. It provides the necessary tools for supporting all the steps of the microloan origination, debt collection and recovery process for financial institutions.

In addition, it can be used by financial institutes and banks in order to provide low-interest loans via an entirely online process. The benefits from the deployment of the microloan origination platform will be apparent not only to the service providers (i.e. banks, financial institutes, etc.) but also to its customers. Time and money savings are common for both parties involved in the process. Convenience, easy access, round-the-clock service and speed are some of the advantages that our microloan origination platform provides in comparison with the traditional process followed nowadays by the people visiting the banks.

Process for Online Application

Customers applying for microcredit will use the b-Verifier product, which is a tool developed by WEDIA, as a multifactor authentication system that provides increased security for banking environments.
Once users establish access to a financial institution’s origination platform through their device, they will upload their financial, and professional credentials which will be certified by reliable authorities (i.e., governmental institutes) or are obtained through trusted identity acquisition.
These credentials are loaded to the user device, and can be used to prove the relevant identity attributes to the EXUS Suite running at the microloan company/institute.
The financial institution will use an access control policy creation tool, developed by CUT, to specify complex credit approval criteria. Several scenarios are going to be tested during the pilot evaluation period, ranging from microloans for medical expenses to credit cards and installment loans.
You can also watch a very short introductory video on the project’s YouTube channel:

or read our white paper with a more detailed technical description in our website https://www.recred.eu/publication-categories/communication