The lending space has actually contributed to the growth of developing economies thus has become a useful establishment by helping some businesses grow into what they are now. Traditional marketplace lending platforms match borrowers and lenders to execute transaction and then charges a fee for the work of matching both parties the system is actually unique in that the involved lending platform who does the matching never lend their own capital nor take deposits. Banks who perform loaning or lending activities holds customer deposits to finance loans and profits from the delta between the interest rates that banks pay back their deposit holders and the interest rates they charge to borrowers, making this sector see a rapid growth.
Even as enticing as the lending sector and the lending process may be it is actually loaded with series of problems that threatens its growth and some of these major problems are;
- The involved platforms still apply traditional technologies and outdated business models which, in this fast-paced world, can be lagging and frustrating to use.
- The whole system of traditional lending is centralized in that it is controlled by a governing body/custodians who match lenders to borrowers and collect charges from both sides instead of performing a peer-to-peer transaction.
- The platform have been dominated by huge institutional investors and technical hedge funds who buy loans directly from big lending platforms. It has gone out of its initial role of assisting struggling businesses who needs it more to grow.
- Due to it being a centralized system there have been manipulations and unfair practices such as fraud affecting customers globally and even the financial market as a whole.
- Because some borrowers do not have a formal credit history this automatically lowers their chances of looking for a lender and as a result face APRs that are to high and in many cases predatory with lending rates frequently exceeding 200% APR.
- The use of inefficient scoring procedures have greatly lowered the chances of Micro, Small, Medium Enterprises (MSMEs).
These problems have greatly affected customers worldwide especially Micro, Small, Medium Enterprises (MSMEs) or struggling businesses who really needs these funds to be able to grow effortlessly.
However, these problems have been assessed by the finest individuals and professionals in the Fintech and general financial market and have designed an amazing technical solution known as PNGME and have been tested by other FinTech companies where it effortlessly proved it can solve not just all the problems plaguing the lending space but also provides other beneficial advantages to non-borrowers.
WHAT IS PNGME?
Pngme is a technological solution for the lending sector, designed with the Blockchain and integrated with banking infrastructure to facilitate transactions, asset settlement, and collateralization of loans using digital and tokenized physical assets.
Unlike traditional marketplace lending, Pngme matches lenders to borrowers using its unique Matching Algorithm which presents loans to lenders based on its proprietary risk assessment and digital credit score and every customer with a good credit score becomes automatically matched to lend or borrow.
The Blockchain makes Pngme perform the functions of decentralization thus transactions will become peer-to-peer thereby lowering cost of transaction and it because of its transparency advantage ensures a non-repudiable audit trail of transactions and repayments, it also offers a secure ground for transaction among peers.
This has eradicated the issues of unfair practices, manipulations and fraud.
PNGCOIN
This is the special digitized asset of the Pngme ecosystem, compatible on the ERC-20 Ethereum blockchain and the powerhouse of the ecosystem. Pngcoin is designed to be utilized by two primary stakeholders namely;
- An Application User: This may be an individual or business who uses the Pngme mobile app to make payments, save money, and take out low-cost credit for their business and can stake Pngcoin for 6, 9, or 12 months to earn a fixed annual percentage yield.
- Network Validators: The Pngme Network will on-board an initial consortium of 10 network validators who will be required to stake Pngcoin to participate as network validators and participate in the governance of the network and are also entitled to the same pool of staking rewards that are issued from the Staking Distribution Pool.
CONCLUSION.
The global acceptance and proper implementation of the Pngme technology will assist MSMEs to grow their business as they wish, boost the growth of the lending sector and equally contribute to the financial sector as a whole and also expand the token economy of Pngcoin.
Refer to the links below for more insights on Pngme;
Website: https://pngme.com/
Telegram Chat: https://t.me/pngmecommunity
Twitter: https://twitter.com/pngmemobile
Facebook: https://www.facebook.com/pngme/
Medium: https://medium.com/pngme
Instagram: https://www.instagram.com/
Reddit: https://www.reddit.com/r/pngme/
LinkedIn: https://www.linkedin.com/company/35697946
YouTube: https://www.youtube.com/channel/UCmUPIgu-xfdYijOS7eOwYyg
BitcoinTalk ANN: https://bitcointalk.org/index.php?topic=5140127
WRITER’S INFO
Bitcointalk username: ezeobulu007
Bitcointalk profile link: https://bitcointalk.org/index.php?action=profile;u=2388805;sa=summary