FintruX is a next generation type of platform for the facilitation of peer to peer lending. The FintruX ecosystems makes getting a loan affordable, fast, and easy. The system uses decentralized blockchain technology for enhanced usability and security. The reduction of costs is extremely important in the loan industry. An unsecured loan is one that is not backed by any assets. FintruX is going to disrupt how the industry has previously handled unsecured loans. They can apply the principles of credit enhancement to reduce interest rates for loans. FintruX has plans to address loan transparency, speed and ease of funding, rates, and risk reduction.
By using credit enhancement, risk of default is lowered allowing for lower interest rates as well. FintruX has four levels for the use of credit enhancements. First, is having over collateralization. Second, there are guarantors from third parties to handle overflow losses. Third, there is a cross collateralization pool. Fourth, there is going to be five percent of all FTX (FintruX) tokens set aside to cover losses that might occur.
FintruX solves three main problems that many startups and small businesses have regarding cash flow problems. The use of credit enhancement reduces risk of lenders allowing for greater loan acceptance. The use of blockchain smart contracts in real time provide unchangeable terms and great security. An instant matching process simplifies applications for loans. Also, after receiving funding, various administration options are available such as prepayment and refinancing.
Additional enhancements to the FintruX ecosystem include making the platform available to other partners like identity services, fraud services, wallets, banks, exchanges, credit scoring agents, and asset managers. The partners will be able to interact directly with the FintruX marketplace. By having these types of partnerships, the platform functionality and user base should grow.
The platform utilizes a token called the FTX token. When people are charged for transactions, the fees are paid in FTX tokens. Lenders are allowed to charge fees in FTX tokens as well as give tokens to borrowers if loans are paid on time. Peer to peer lending is a fast growing market segment. It is estimated that by 2020 in the United States, as much as ten percent of unsecured consumer loans might be in the form of peer to peer loans. These types of loans are a good alternative for many people. The FintruX platform and ecosystem should be a great advancement in this industry.
Blockchain technology is what allows for this new ecosystem to be built. The smarts contracts used can be fully customized to each situation. FintruX will run on the most popular blockchain called Ethereum. There is no risk of failures like power loss or node failure when using smart contracts. Also, there is not a risk of losing someone's data as everything is stored on the public distributed ledger. No changes can be made to these records either, and terms of the contract are not allowed to be changed. This makes for a very secure environment for making and receiving loans. If you are interested to find out more on the FintruX ecosystem, you can find several links listed here.
Whitepaper: https://www.fintrux.com/home/doc/whitepaper.pdf
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