🏦For ages the banking industry has been controlled by a few privileged powerful institutions that have been in control of most of the world’s wealth. The interest of the average individual, the millions of depositors and non-professional investors has been consistently neglected. Huge profits have been made by those privileged without sharing in an equitable and fair way with those contributing with their funds. Time has come to challenge this model and offer a new convention to the financial industry. The key to finding the new way lies in the hands of technology. Blockchain has shown us that there can be a better way. A system in which decision-making is done by the majority and not centralized with the few. The decentralized finance technologies opened wide doors for technical, but above all functional improvement in most processes in the financial industry. However, so far the real-life application of this new approach and the peer-to-peer financing projects in particular are few and offer limited features. For the time being they do not produce a fair rate of return for the investors.
🙋♂️At Credefi we are committed to:
🔸Giving you back control over your wealth;
🔸Enabling you to make informed investment choices;
🔸Offering you opportunities that bring a high rate of return;
🔸Improving the access to finance to those in need.
👨💻Credefi has designed a system that allows lending and borrowing money on a decentralized platform, where the interest is determined by the users’ individual risk appetite. We aim to provide a full spectrum of services, similar to what the traditional banking industry is offering, however, in a fully decentralized way. The platform will connect users and enable peer-to-peer lending that goes beyond what we have experienced so far. Credefi is going to give its users the option to invest in credit portfolios, individual loans, or do trade finance, directly through their personal wallet.
🚨Current banking services exclude a wide range of potential borrowers due to over-restrictive regulations, centralized and slow decision-making operations.
A traditional bank operates with the deposited money of its customers (depositors) and via centralized decision-making, estimates the risk and return of its operations.This means depositors have zero choice, control or even knowledge where and how their funds are invested. In most cases banks make a considerable profit from their operations based on the interest rate spread (the difference between the interest rate charged to borrowers and the one paid to depositors). Current interest rates for depositors are at a historical low, meaning you receive almost no interest for your funds, and in some cases they are even negative.
💁♂️At Credefi, we believe that you should have control over what assets your money is invested in and that the return from the investment should be paid in full to the actual investor — yourself.
✍️Our platform will provide the means for each borrower to apply and be evaluated using professional risk assessment algorithms. After the assessment, a recommended rate of return is assigned to the application, the projects are uploaded to the platform and all users will be able to make an informed choice on where and how much to invest, as well as what return to expect.
☝️Credefi’s solution offers its users a choice to either passively earn a yield by funding loan portfolios or lend to individual projects with potentially higher returns. Furthermore, in the long run Credefi aims to become a market-driven, automated lending system. All of these features will be launched in three distinct phases. Credefi is the first project offering all the functionalities of a self-service Bank in the crypto space.