Canadian fintech startup PayPie have announced they are enabling trust and transparency with a unique ‘Credit Risk Assessment Score’ for businesses worldwide in what will be a faster, safer, and cheaper lending alternative.
The startup, founded earlier this year by Nick Chandi and Jag Barpagga, has chosen to challenge the big boys in fintech such as Equifax, Experian, and TransUnion in creating a platform that businesses can trust and feel comfortable sharing information with. This is particularly true with regards to small and medium-sized businesses, the area that PayPie is looking to focus on.
The platform looks to change the way accounting is done by leveraging blockchain to enable live financial audits, speed up credit approval, and improve overall credit scoring processes.
To do this, PayPie encourages companies to input their transactions into a joint register on blockchain. This creates an interlocking system of records, and the data is then distributed into PayPie’s algorithm which in turn creates a credit score for the business.
Information created by this algorithm can then be used by lenders, auditors, accountants, and more.
So why is this such a revolutionary idea? Well, for one, the way the platform operates could potentially save financial players billions in overhead. But also, according to Chandi, it will both simplify the process, as well as make it more effective. Speaking about the announcement, he said, “Often a company’s financial situation is inaccurate, due to a lack of information and the fact that this information is usually outdated.”
“But by harnessing technology – blockchain in particular – we can avoid these issues and make the system fairer both for the businesses themselves, as well as those who wish to access the financial information,” he continued.
This is different from traditional methods, which rely on the user to keep up to date with all of their accounts and make changes to any inaccuracies such as missing account details, or information that doesn’t belong to them. Because of this, credit scores can frequently be inaccurate.
Improved accuracy will not just help those dealing with the numbers, it will also help these small businesses secure funding due to the higher levels of trust. According to a report by the National Small Business Survey, lack of funding was the number 1 obstacle in terms of growth.
PayPie are also hosting a Token Crowdsale, starting October 15th at 1PM UTC, you can sign up for the early pre-sale alert here.