FintruX - The True P2P Lending Ecosystem

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ABOUT US

FintruX Network makes it easy for borrowers to connect with reputable lenders and servicing agencies, save money with competitive interest rates, and get an affordable loan within minutes in a fair and transparent process without collateral.

FintruX Network is making decentralized financing with trust a no-brainer for borrowers and lenders, building an ecosystem where transparency, risk reduction, and efficiency is maximized to ensure all participants win.

THE CHALLENGE

The Issues Plaguing Traditional Small Business (SME) Financing

01. Inefficient

Banks prefer to lend cash on cash. This means that they will lend you the same amount of money you have in your savings account, using your money as collateral. Additionally, loan amounts requested are usually too small for financial institutions to do efficiently.

02. Expensive

If a loan is procured from alternative financing sources, the interest rate is generally too high. Finance companies only utilize a few data sets to evaluate SME borrower worthiness resulting in poor representation of credit, and traditional p2p lenders offer high interest rates due to private equity backing.

03. Inaccessible

Capital that could have been invested in small business credit has been largely locked out of the market. Individual investors generally lack the size and access to directly invest in small business credit, and while institutional investors have had some access to this market, they lack the tools to customize portfolios to their specific risk tolerance.

THE SOLUTION

We leverage our extensive expertise and technology to create an ecosystem of lenders, borrowers, and service agencies operating in a true peer-to-peer marketplace to reduce the friction of small business (SME) lending. Our platform makes unsecured financing easy, fast, and highly secure with credit enhancements, no-code generation, and an open ecosystem.

Credit Enhancements

Credit enhancements have historically only available to securitizations of large portfolios. Our background and technology enables us to create novel credit enhancers for our true P2P lending platform, acting as cascading levels of insurances to cover potential losses. This reduces the lender’s credit risk and interest rates for borrowers is lowered.

Level 1: Over Collateralization

10% protection.

Since the over-collateralization coverage is one-tenth of the loan, it is capable of covering one out of ten bad loans from the same borrower.

LEVEL 2: Incented Guarantors

Complete protection by owner and incented guarantors

For loans under their protection, the owner and incented guarantor(s) are responsible for losses over 10% in a cascading manner. The company owner is always the first guarantor to be responsible.

LEVEL 3: Cross-Collateralization

Additional protection via cross-collateralization pools

The cross-collateralization pool is made up of the over-collateralization (10% hold back) of loans in the same class (risk & currency). If all guarantors for a loan default, then the respective pool can cover additional losses, neutralizing the risk for lenders.

Continuous injection of over-collateralization from new loans and recovery from defaulted loans will make this pool one of the safest insurance mechanisms.

LEVEL 4: FintruX Reserve

Ultimate reserve protection

Failing all previous credit enhancers, 5% of all FTX Tokens has been reserved to cover remaining losses. This scenario is extremely unlikely in a healthy ecosystem of good actors, incented guarantors, and loan volume.

No Code Generation

Our no-code generation technology enables us to simplify and streamline the loan application process, increasing efficiency and lowering costs. Borrowers and lenders of various risk profiles and tolerances can easily find each other online. An open-source unique loan smart contract is automatically generated and deployed by FintruX Network for each approved loan in real-time to provide unambiguous, immutable, and censorship resistant records where no arbitration is required and expected obligations are transparent.

Traditional automation is one system for all varieties of transactions – lots of “if-then-else” statements, very complicated. We are shifting the programming paradigm with FintruX Network. We enable the generation of one unique program (“Smart Contract”) for each borrower contract to be deployed at real-time on the blockchain via configurable user interfaces for the platform participants. By generating a new contract for each individual use case, each program is in its simplest form, no more if-then-else statements.

What it means to our programmer: before, we used to make all programs flexible, no hard-coding; now it is just the opposite - all hard-coding to make sure it is in its simplest form and fully customized for one scenario, one situation, one event.

The Smart Contract becomes a binding agreement between the participants - unambiguous, immutable and no arbitration required on the terms and conditions, and status of repayment at any time. Special instructions such as refinance, prepayment, end-of-term processing, are self-executing and previously agreed upon.

Open Ecosystem

To further enhance our offerings, we invite partners to join our open ecosystem such as fraud and identity (KYC/AML) service agents, credit scoring and decision agents, escrow agents, collection and recovery specialists, wallets, exchanges, brokers, insurance companies and technology companies; to develop a new generation of financial products and innovative new tools for use on our platform. By enabling borrowers and lenders direct access to a wide host of financial services, we create maximized opportunities and freedom to make the right decisions.

We provide and maintain a decentralized review platform for borrowers, lenders and all service agencies on the blockchain. In contrast, reviews written on a third-party website are subject to change by the site owner – there is no integrity in the current non-blockchain based systems. The need of gaining qualified feedback/market research data to enhance the quality of risk assessment, service and transparency cannot be over-emphasized.

On the other side, we see borrowers, lacking a reliable source of comparability between different lenders as well as the possibility to give unfiltered feedback to share their opinion and thoughts. The same for lenders who can now rate and write reviews on their borrowers and agencies; subsequently these can be used as part of the credit scoring mechanism for assessment of credit risk.

With true P2P lending, we place decision making directly into the hands of the users. For the first time, ordinary citizens have the opportunity to tap into small business credit and make their own credit decisions based on facts, market insights, and/or third-party analysis; giving them unprecedented control over their investments. Borrowers can choose to be scored by a variety of credit scoring agencies to build a more comprehensive and holistic view of their creditworthiness, unlocking access to additional sources of funding. Incented guarantors improve overall interest rates by guaranteeing loans, earning a portion of the interest for an incentive fee. Service providers are offered the opportunity to expand their offerings from a traditional wholesale model for financial institutions, to a retail model selling directly to consumers.

TOKENIZATION

The FintruX Network is powered by FTX, a utility token that rewards participation in the marketplace.

Supply
All ecosystem participants get paid with FTX tokens for their services.
Demand
Token holders have access to the platform, and earn exclusive benefits and rewards.
Stable
Demand of FTX is directly proportional to the number of loans facilitated by the platform. Costs specified in FTX are tied to Fiat, enabling a self-regulating mechanism.

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NEWS

Tuesday Team Talks № 16

As part of our continuing educational blog series, today we will focus on blockchain as an alternative payment method in online transactions, and provide an example of how we utilize FRX ledger to process loan payments. Until recently, blockchain and cryptocurrencies were just enigmatic words that were used by a community of enthusiasts. However, over the past few years, the number of users of cryptocurrency wallets has seen a steady increase as use cases develop and mature.

- October, 09, 2018

September in Review: Planning Ahead

September has been a busy month for us with several interesting developments. We recently released a blog discussing our strategic plans in re-defining our current business model. We have also had some impressive media mentions, informative articles on fintech regulation, a new addition to our legal team and several strong rounds of discussions with potential partners.

- October, 02, 2018

PRESS QUOTES

FintruX is playing in a clear market, with the goal to become one of the first blockchain applications that starts adding value in the real world. They are a well thought through company with a lot of good ambitions for the start-up sector.

FintruX is a revolutionary new lending platform that incorporates blockchain to provide a fast and safe way of obtaining an affordable unsecure loan.

FintruX Network is a multi-sided marketplace and ecosystem that delivers value not just to borrowers and lenders, but also to third-party guarantors and specialized service agents.

This innovative concept solves major issues for small businesses, especially startups, to borrow from accredited investors and financial institutions.

Harnessing over two decades of experience serving the securitization sector, this team from Canada applies cascading levels of credit enhancements to offer unprecedented risk reduction towards unsecured loans.

FintruX Network seeks to neutralize the lender's credit risk and, in the case of a default, provide cascading levels of insurances to cover the loss – increasing the overall credit rating and lowering interest rates simultaneously

FintruX Network disrupts the way unsecured loans are being originated and administered.

Decentralization is the future and when it comes to having an open and transparent financing market, FintruX is leading the way.

Fintrux Network is making borrowing and lending a no-brainer for both borrowers and investors.

FintruX Network eliminates manual processes through automation and increase user’s borrowing and lending experience.

FintruX has a long history with disrupting the online finance space. The company was the first to create an online credit adjudication platform (in Canada in 1994) and has a background of working with reputable funders with billions of dollars already under management.

Get In Touch

Any question? Reach out to us and we’ll get back to you shortly.

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