It is time to tell you why we have decided to launch our project and what problems of the market we are going to solve. Today’s post will be discussing exactly that.
Banks are inefficient when it comes to working with borrowers and lenders. A lot of potential borrowers have no access to loans due to over restrictive regulation and centralized, slow decision making and operations. In their turn, lenders have no control over where their money goes, and have to contend with low yield rates on their capital.
The banks use for an excuse a variety of general global threats which allow them to deem the all-time-low interest they pay — “the best possible yield in the current state of the world economy” while still keeping in vail where your money is invested and how much they earn. We challenge you to call your bank and ask them what interest they will give you for a deposit of EUR 10 000 and what interest they will charge you for a loan of that amount. We are sure you won’t like the results.
At Credefi we believe that since it is your money, you should have control over where and in what assets they are invested and the return yield from this should be paid in full to the actual provider of the funds — you. We are working on building an efficient pipeline for choosing potential clients and assessing risks, which we have covered in our Medium.
We aim to turn the banking industry into a decentralized system, where each participant has the rights to the majority of the profits for taking the risk of lending their funds.