Blockchain Technology For Financial Credit And Loan Training Ppt

Slide 1

This slide introduces the concept of loans in a financial institution along with its key features such as the time period of a loan and the size of the loan. These are dependent on the borrower's need and creditworthiness.

Slide 2

This slide illustrates the process that governs that sanction of a traditional consumer loan. The steps include the filling of application form, document submission, document verification by bank, and loan disbursal.

Instructor’s Notes: 

• When you apply for a loan at a bank, the bank must assess the risk that you may default on your payments
• They look at factors such as your debt-to-income ratio, credit score, and property ownership status, among other things
• To obtain this information, they must consult your credit report, which a credit bureau issues
• Depending on this information, banks factor the probability of default into the fee and interest to be charged on loans 
• This makes the entire process of loans costly and time consuming and also leads to issues of how accurate the risk assessment has been

Slide 3

This slide showcases how blockchain can transform the traditional lending process. Blockchain addresses gaps created in the traditional lending process due to banks’ inability to assess credit-worthiness. It also tackles the issues of time-consuming documentation and evaluation.