Transactions for Bank credits score

[IMPACT] Please describe your proposed solution.

Context

Globally, around 1.7 billion adults are still unbanked, that means without an account at a financial institution or through a mobile money provider. In 2014, this number was 2 billion [confere https://globalfindex.worldbank.org/sites/globalfindex/files/chapters/2017%20Findex%20full%20report_chapter2.pdf]. Because account ownership is nearly universal in high-income economies, virtually all unbanked adults live in developing economies. This proportion of people is automatically excluded from traditional bank credit. The criteria for access to traditional bank credit do not take into account external data to the banking systems. This drastically reduces the number of people who can access bank credit. However, among these two categories of people set aside by the not really intelligent filter of the banks, there are undoubtedly customers of good character, producing values, making transactions, which, taken into account in the calculation of the credit score, would give them a solvency enabling them to access bank credit.

With the advent of cryptocurrency which offers enormous flexibility, freedom, security, decentralization, as well as cheaper fund transfers, many people have opted for this alternative. They produce a lot of values there. The Cardano platform with its ADA cryptocurrency has seen quite a high flow of transactions lately. These multifaceted transactions constitute values for the customer.

Moreover, crypto-currencies do not have a system that is efficient enough to grant credit, the basis for financing projects that are the main levers of development. On the other hand, traditional banking systems have a system for granting bank credit. But only access to traditional bank credit incorporates filters that exclude a good number of solvent people (who produce values not taken into account in the determination of conventional solvency). Transactions made on Cardano's platform would be quite important elements that would give banks relevant arguments to not only improve the criteria for selecting applicants for bank loans, but also allow the inclusion of those who had no access at all to traditional banking services.

Solution

This will involve providing banking institutions (or any other third-party institution), at the customer's request, with organized multiform information, allowing them to integrate it into the process of calculating the credit score. It is about creating an interactive platform allowing anyone with an account on cardano, to collect, group their transactions information so that they can be used in the process of calculating the credit score and to be able to make it available to the banking institution of their choice. Make banking institutions understand that on the Cardano blockchain multifaceted values are produced and should be taken into consideration in the assessment of the creditworthiness of customers.

The solution will include a client application (web client, mobile application) and a server application deployed on the Cardano blockchain. On the client application, the client will be able to access the values he has produced resulting from his transactions on the Cardano blockchain. The server application will be a combination of artificial intelligence and machine learning that will extract transactions from a client on the Cardano platform, process them and organize them in formats desirable by the client and the banks. . It will make those data available to banks after verification and express authorization by the client via the client application.

How it works?  

1. From an interface, the client requests the collection on the Cardano blockchain, necessary information that can be taken into account in the calculation of the credit score.
2. The application accesses the customer's transactions on Cardano, collects the information, processes it and makes it available to any applicant. This data is updated as the customer completes transactions.
3. From an interface, the institution inserts the public key of the customer requesting the credit and accesses the processed information.
4. The banking entity chooses the format in which it needs the information to be formatted and imports it.
5. The import can be done through sending an email, sending it to a file server, downloading locally, etc.

A use Case

Ewané is a young Plutus developer. He has developed applications on the Cardano blockchain. In his applications, he has integrated smart contracts that take a delta from each user transaction for the benefit of his account. These applications constitute values for Ewané. 

Having knowledge of agriculture as the son of a farmer, Ewané would like to diversify his activities by launching an agricultural project. But he does not have the financial means to achieve his goals.

On the Cardano platform, its applications are gradually increasing in value. The interest of users in its applications, the penetration rate of its applications, the evolution curve of the number of users of its applications, the evolution curve of the number of transactions in its applications are growing .

Ewané goes to a bank to lend money to start his agricultural project. Considering only the classic criteria (Payment history, Total amount owed, Length of credit history, Types of credit, New credit) for the granting of credit, Ewané would be refused credit. Because it would not meet several of the conditions considered by the bank. Its solvency would be quite low. However, Ewané is a trustworthy man. Beyond trust, it produces value on the Cardano blockchain. These values could be used as a guarantee to increase Ewané's solvency and allow it to benefit from the credit.

With the application available, Ewané could convince the bank to take into consideration the values he produces on the Cardano platform in determining his creditworthiness. If the bank agrees to take these values into consideration, it will query the application, which will provide it with information on Ewané's solvency based on criteria such as:

• The balance of Ewané in ADA,
• Consistency in transactions,
• The interest that users have in its applications on Cardano platform,
• The penetration rate of its applications,
• The scalability of the number of users of its applications,
• The evolution curve of the number of transactions in its applications,
• The increase in the accumulation of deltas deducted from user transactions,
• etc

Parameters favoring the increase of Ewané's chances of obtaining credit and then financing his agricultural project.

Added value

1. For anyone active on Cardano and producing values that can be considered on other platforms is a real added value to the Cardano system. The application allows Cardano to make quite an important feature available to customers.
2. The app allows Cardano to contribute to the inclusion in bank credit of people initially excluded by traditional methods.
3. The app will drive people to adopt the Cardano blockchain, build loyalty among common users, and help financial inclusion for a population of over 1.7 billion people.
4. The application allows banks to integrate values other than those considered by traditional criteria (smart contracts) into the credit score calculation process.
5. The application allows banks to integrate values other than those considered by traditional criteria (smart contracts) into the credit score calculation process.
6. The application will allow Cardano to think about integrating the decentralized credit service into its platform thanks to the results of artificial intelligence and machine learning that will be made available. 

[IMPACT] Please describe how your proposed solution will address the Challenge that you have submitted it in.

As mentioned in the list of added values, the future application will promote and encourage the adoption of the Cardano blockchain therefore will bring more users therefore more transactions, it will contribute to customer loyalty. The application will allow integration with other systems such as banking systems.

[IMPACT] What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?

The big challenge in this project is to transform transaction information into data relevant enough for banks to enable customers to obtain the chances of access to bank credit.

This challenge will be mitigated by deepening knowledge in big data and artificial intelligence.

[FEASIBILITY] Please provide a detailed plan, including timeline and key milestones for delivering your proposal.

The detailed plan including timeline and key milestones for delivering this proposal can be seen at the link below: https://docs.google.com/document/d/123WlnvGCRt0EkfN8CmXrHlGAFs7gjldfBTCFa_gqHUw/edit?usp=sharing

[FEASIBILITY] Please provide a detailed budget breakdown.

The detailed budget breakdown can bee seen at the link below: https://docs.google.com/document/d/1w10kSxVs5wZAmfmfHrzmmyNm4ozkNbnILkJoIsFVVwk/edit?usp=sharing

[FEASIBILITY] Please provide details of the people who will work on the project.

1 Phd in maths engineering specialized in Data analyst - for Big data and Artificial intelligence (AI) 6+

2 Software engineers specialized in software engineering - Software architect 12+

5 Software developer 5+ in Haskell

[FEASIBILITY] If you are funded, will you return to Catalyst in a later round for further funding? Please explain why / why not.

No i will not return to Catalyst in a later round for further funding. Whatever, in order to scale the platform, create new version and add new requirement, i will use the fund generated by the platform by retaining a delta on each transaction.

[FEASIBILITY] Are you or any member of your team working on any other proposals in this Fund9?

[FEASIBILITY] Are you or your team working on any other proposals from previous Funds?

[AUDITABILITY] Please describe what you will measure to track your project's progress, and how will you measure these?

As described above, the validation of the various deliverables will tell us about the progress of the project

[AUDITABILITY] What does success for this project look like?

A scientific and technological tool will be integrated into the application to rationally measure the impact of the application on the Cardano platform and financial inclusion. This tool will provide a dashboard on different statistics of data obtained from artificial intelligence and machine learning. Thus, it will be possible to know in real time:

• the number of customers of the Cardano platform who have requested the data necessary for the solvency calculation process,
• The number of times the requested data has been made available to banks,
• Number of credits earned using app data.
• The number of banks that have used the application and the number of times used by each of them
• The number of Cardano customers who like the app.

It will also be possible to know in real time the Cardano customers who have registered through the application.

We will consider the project successful if:

1. The application has generated numerous registrations on the Cardano platform
2. A good number of Cardano customers are interested in the application,
3. Cardano has adopted the app for its credit system

[AUDITABILITY] Please provide information on whether this proposal is a continuation of a previously funded project in Catalyst or an entirely new one.

This project is a brand new project