There are still a lot of people in this world that doesn’t have access to financial services, especially credit. According to the Global Findex report, about two billion people around the world don’t have it. Usually, only the poorest and people who live in remote areas is lacking in this service. This becomes a serious problem because those people who lack in having financial services won’t get many opportunities to make their life better.
Another problem of accessing credit card is the high cost of the capital, the high cost of banking infrastructure and information asymmetry. The problem occurred in developing country are they have a low credit offering and higher interest rate spread. This makes credit more expensive and saving less remunerative. This problem can happen in the less developed country because of the banking sector’s market power, lack of liquidity, systemic inefficiencies, exchange rate volatility, default risks, the complexity of banking operations, and tax regulation. All of this problem combined and contributes to an unfavourable system for consumers so they experience high implicit and explicit fees.
Many poor people in less developed country describe as underserved by the bank and they have limited or no access to financial facilities like credit or loans. The bank categorized them as high-risk potential. A few Banks give them loans or credit with the high-interest rate. This makes credit service in developing country high costly and might be unattainable.
Swapy network has d dream to create a world with efficient credit market when everyone can hold a power and can get the advantages of universal access to credit. Basically, Swapy network is a credit market based on blockchain and incentivized by token so people/user can share their financial data and be investing in all the credit company in many different countries. Swapy network uses token/ cryptocurrency for all transaction and service provided in the network. The currency used in this platform is Swap token and you can buy it only with Ethereum.
Swapy network offers to us 3 main application to solve the credit problem above.
The Swapy Exchange
Swapy exchange is an application which connects all credit service provider and international investors around the world. This will create an efficient money market. For example, the credit service provider or investor from a country with low-interest rate can offer collaboration with a company from the country with the high-interest rate. This kind of collaboration can advantage both of them. The former can get a higher return and the latter can get lower capital cost. The customer from a country with high-interest rate also can get credit with lower rates.
Swapy Financial ID
To put it simply, Swapy financial ID is a digital identification for users that can be used in every country. It holds international validity. With this ID the user can simplify al application process in Swapy network. Usually, for every kind of financial service, the institution need customer AML (anti-money laundry) and KYC (know your customer), with this ID you just need to go to this process once for every transaction or financial service you take. The ID also provides a network with your credit history and it can help you give access to credit facilities with ease in every location.
Swapy Data Market
With current model of credit service, usually the big institution collect individual data without consent and that will make the competition unfair. With the high cost of doing that collecting data, the institution then passed it to the end user and cause high-interest rate.
Swapy network with its data market application eliminates this unbalanced system and make data become available to all user without discrimination.
By these pillars, all the user can get the advantages of all the transaction or service provided in the network and will also solve the current problem of credit and loans globally.