The Royal Bank of Canada (RBC) filed a patent for the credit score platform on Blockchain technology last fall, according to patent application Office of US Patents and Trademarks, published 15 March.
The patent describes a credit score platform based on Blockchain, where "Credit records are recorded using blocks associated with identity data. The credit record keeps historical and prognostic information about borrowers used to calculate credit ratings. "
Advantages of Blockchain Technology
According to the patent, the traditional method of calculating the credit score is "opaque". Customers are not always informed when certain data affect their credit rating, and "they have the tools to take control of their credit rating."
Using the distributed accounting technology described in the patent, customers will be "notified that third party credit checks will occur or when the credit rating changes." For example, in case of a missed account, which adversely affected their credit rating, consumers will receive a credit warning.
With the proposed platform for evaluating the creditworthiness of Blockchain, a "useful visualization" of all data related to the definition of a credit score will be available, thus "giving the borrower an opportunity to obtain a loan."
The patent also notes that the proposed credit score platform will be able to obtain credit data from more sources than traditional credit bureaus.
This is not RBC's first step in digital book technology. In September last year, the bank announced that they are using Hyperledger based on Blockchain for shadow interbank settlements between the US and Canada. Last autumn, the RBC CEO also praised Blockchain, noting that he has "a chance to introduce everything from our capital markets, as well as our trading enterprises, our enterprises to resolve security issues directly to our retail franchise."
Author: Yevgeny Yakubenko, Analyst Freedman Club Crypto News
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