NAOS Finance and IoTeX Partnership
Micro, Small & Medium Enterprises (“MSMEs”) generally have difficulties in getting loans from banks, because the conventional credit scoring process relies on analyzing the financial statements. Many MSMEs fail to provide sufficient financial data or proof of assets to meet the requirements.
Though credit bureaus such as TransUnion, FICO and Experian provide additional evaluation support, their focus is still solely on banking, loan and financial data. To date, there are not many non-banking entities participating in this problem space in a unified way.
The NAOS Finance and IoTeX partnership will bring non-financial data on-chain to formulate ACS for MSMEs.
“We are excited to partner with NAOS Finance to connect the real world with the blockchain universe. Together we are introducing a new utility for real world data from “Powered by IoTeX” devices to fuel trusted lending/borrowing of real world assets, as well as transparent valuation of real world assets based on .”— Raullen Chai, Co-Founder of IoTeX
The ACS combines financial data with alternative data such as electricity/fuel consumption, delivery frequency/quality and warehouse activities to predict possible loan defaults. When an MSME applies for a loan, NAOS triggers an API call to obtain the required alternative data from IoTeX for credit scoring. The data are then fed into NAOS’ credit decision engine for further modelling and decision making.
“MSMEs represent 90% of global businesses and contribute to more than 40% of GDP in emerging economies. NAOS is on a mission to expand DeFi beyond the existing 1% of global users, and there is no better place to start than tackling the issue of financial inclusion for global MSMEs.”—Kevin Tseng, Founder of NAOS Finance
IoTeX devices such as Pebble Tracker are designed to capture verifiable data from the real world and make it available to blockchain Dapps. Pebble Tracker is currently being piloted in several supply chain testbeds, which will be a perfect sandbox to bring NAOS-IoTeX trust scores to enterprise clients. Furthermore, since 2020 IoTeX has been developing its TruStream protocol, a real world data oracle designed to work with all types of IoT devices, which will bring even greater variety of trusted data from trusted devices to the blockchain.
ABOUT Naos Finance
NAOS Finance is a decentralized real world asset (RWA) lending protocol that facilitates the borrowing of crypto native assets by using RWA as collateral. NAOS has established a large network of corporate borrowers and is operating with financing licenses in multiple regions. In the effort of connecting CeFi with DeFi, NAOS takes an ecosystem approach and looks to engage in meaningful strategic partnerships to expand the boundary of decentralized finance.
ABOUT IOTEX
IoTeX is the leading blockchain & IoT platform that connects real world devices/machines to Dapps. With a vision to empower the Internet of Trusted Things, IoTeX was founded in 2017 to create a borderless ecosystem where humans and machines can interact in a trusted, secure, and decentralized fashion. With on-chain data from billions of devices/machines — vehicles, smart meters, asset trackers, drones, edge sensors — IoTeX provides builders with real world information that can help construct a more accurate credit profile for lenders, borrowers, and businesses of all sizes.
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