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Royal Bank of Canada Explores Blockchain to Automate Credit Scores

The Queenlike Bank of Canada may be interested in putting credit scores on a blockchain.

In a licence application released Thursday, the bank outlines a platform built on a blockchain that leave automatically generate credit ratings using a borrower’s historical and predictive materials. The application as described proposes a system that would utilize profuse data sources than existing credit rating systems, improving the advance process while creating an immutable record.

Notably, the RBC patent bearing indicates that it would redesign the credit rating system to take under ones wing more transparency for users to understand how their scores are calculated. Another, adding this new level of transparency would help users update their scores more quickly than is possible at present, according to the completing.

One way the system could work is by using marketplace information to analyze accommodation offers based on existing credit histories.

The application explains:

“In another interpretation there is provided a system for credit and digital identity records with a apportioned ledger of a plurality of nodes, each node including at least a estimate device, and the distributed ledger having a plurality of blocks, each barricade comprising identification data linked to a set of identifiers for an individual, transaction information, a timestamp indicating when the block was created, and a hash reference for the disseminated ledger.”

If a loan application is submitted, the system would automatically clinch what sort of loan and creditor would be appropriate before inventing a unique smart contract that contains the terms of the loan.

In other tete–tetes, the blockchain-based system would automate every step of the credit at all event process through a more transparent system, according to the filing.

At thrust time, it’s unclear if the system would use one single blockchain or multiple networks, or whether RBC would be fit to build the system if the patent is granted.

RBC image via Shutterstock

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