In my previous writeup, I talked about why social lending plays a pivotal role in transforming ITMF into a full fledged crypto-bank. To some extent, the point of the article was to highlight how social lending can help ITMF beef up its lending proficiency by using the platform to mine data and experience from.
What I did not cover is that social lending in itself, is a higher-than-bank risk, higher-than-bank reward arrangement for lenders, which is among the factors contributing to a consolidation in the social lending industry. So this article will address just that and how ITMF social lending will be able to stay ahead where others have not.
But first, it is important to remember that ITMF social lending platform is only a facilitator to manifest contact between lender and borrower. It may however, provide collection services and joint lending (as in ITMF lends on the platform with other users).
Borrowers with a history with ITMF
Banks have an advantage with lending because it is able to quickly gain access to the borrowers bank account and activities to form an in-depth profile of the borrower. Social lending platforms are not able to retrieve such granular detail. ITMF however, will have a similar advantage due to the ITCO network and ITMF funds.
As the name suggests, borrowers will be able to put up their properties as collateral. This makes social lending a safer proposition at first glance, it may seem like such activities will be reserved for higher loans, but ITMF is looking into fractional ownership of properties through blockchain technology to create an appropriate collateral value to back against the loan amount. This creates an innovative way for borrowers to stake a part of their property as collateral to get the appropriate financing they want while minimizing risk to lenders which has the potential to reshape the social lending industry.
Consumer Lending with ITMF
ITCO network faciliates everyday payments and transactions. ITMF can allow lenders to co-lend with ITMF in consumer lending when paying through ITCO to allow monthly payment plans for any and all participating merchants. ITCO users will be able to buy the latest and greatest iPhone, or furnish their new apartment on ITCO credit through a monthly payment plan, co-loaned with ITMF and lenders on the ITMF social lending platform.
The Ecosystem Of Value
The way ITMF was envisioned and constructed is to create an ecosystem of mutually benefical relationships between each components in the system. By leveraging on the ITCO network to serve the ITMF social lending platform, the ITCO network becomes a true and fully functional global currency that can be used for everyday payments and transactions with the ability to pay on credit and provide cashback benefits (through partnerships with commerce businesses and funds).