Srijan2022@APAC
Business Challenge: Create a
lending application to manage
smart financial contracts using
blockchain.
Idea Title : Lending Application
Based On Block Chain-Smart
Contract – Bit Fin
Innovators:
• V. Sathish Kumar
• M. Sagayaraj
• Mageshwari Settu
• Mahalaxmi M Confidential & Proprietary 1
Agenda
1 Business Challenges
2
Strategies to overcome the
Challenges
3 Key Features of Solution
Confidential & Proprietary 2
Business Challenge
Business Challenge Title:
• Create a lending application to manage smart financial
contracts using blockchain.
Description as on DEX:
• Create an application to manage smart financial
contracts using blockchain. Solution platform will be kind
of an MVP which uses smart contract information.
• Blockchain based lending application in other words.
• There is also a data problem that need to be solved in
this context.
• Block chain was originally designed to facilitate peer to
peer banking at scale.
• But when enterprises are cruising on this journey, it is
difficult to retrofit first generation blockchain technology
into their environment.
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Define problem as you understood
• There are currently many P2P Lending applications in India
like LendBox, LenDenClub, Finry, Faircent, Lendingkart, i-
Lendbox, Rupee Circle etc. These applications face many
challenges like encouraging riskier borrowers who may
default on payment and providing high loan amount to
borrowers beyond their capacity to repay.
• Data problem: Block Chain based lending apps handle
huge data as compared to earlier apps, which leads to time
delay and performance issues.
• Lack of Regulation: Because P2P lending apps do not
involve Third Parties, there is lack of Regulation.
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Proposed Idea/Solution
• Current P2P Lending Applications in India are
not Block Chain based.
• They also face many limitations like loan
defaulting, encouraging riskier borrowers etc.
• To overcome these challenges, we propose to
introduce a block-chain based P2P Lending
Application which better evaluates the credit
worthiness of borrowers and is highly
scalable.
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Key Metrics
Credit
Metrics like Credit report and Credit
risk. Score of borrowers.
Profitability Profitable for both lenders and
borrowers.
Customer acquisition
costs Customer acquisition costs should be
low.
Data Security
Our solution uses highly secured
cryptographic algorithms (Like AES-
256, SHA-256).
Immutable
Approved records will be irreversible.
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Unique Value Proposition
• Blockchain based P2P Lending Application is
new to India. Very few P2P lending
applications in India are Block Chain
based. Our application would be one among
them.
• Transactions are faster than normal lending
applications.
• Better assessment of credit risk of
borrowers. Reduced time while onboarding
new lender/borrower.
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Architecture
Borrower
Diagram Investor
Setup Profile
Setup Profile
BGV Team
Market
Loan Request
Verify / Reject Place
Loan Approve(By Investor)
Agreed Loan terms embedded in Smart Contract
Smart Contract Smart Contract
BLOCKCHAIN
Receive Payment Send Money
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Business Flow of Bit Fin Application
Lender and Borrower BGV Team Lender checks Display the Borrower
Borrower creates the verify/reject the the verified loan EMI details repay the
step up their loan request loan request request and to the loan EMI
profiles Find interest approve it the loan borrower.
Transfer Transfer the loan
rate using smart amount to the EMI to the
contracts borrower respective lender
A lender and Once the user profile BGV team verifies Once the BGV team After lender approves Borrower can repay
borrower could is successfully the borrower done the loan request, the loan EMI to the
create a profile with created, bit Fin provided details in the verification , borrower can view EMI respective lender for
personal information application validates the loan request , if then the borrower details of the approved each month using
and register. loan eligibility, if the all the information loan request will be loan request meta mask (Ethereum
borrower is eligible are valid then they visible to all lenders. wallet).
to get the loan. Bit will verify, or else If any lender
Fin allows the loan request will be interested to provide
borrower to create rejected. loan . Lender will
loan request verify the loan
details and approve
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Technology Stack
Front End
1 React JS, Redux, Hooks
2 Boot Strap 5
3 HTML,CSS
Back End
4 Ethereum, Solidity
5 Blockchain,Web3
6 Spring Security, OAuth
7Java, Spring Boot, Mysql Database
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Unfair Advantage
Our solution is more secure and offers no unfair advantage to hackers/attackers
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Channels
Path to
01 customers Facebook Twitter LinkedIn
Inbound Outbound
Inbound and
02 Outbound
Web content.-Social
media posts,
TV, newspapers,
magazines, radio.
hashtags.
Direct and
03 Indirect
P2p is mostly direct channel based
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Customer Segments
• Customers with good credit score
Customers with good repaying capacity
Customers whose annual salary is within 10
lakh rupees.
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Cost Structure & Revenue Streams
Cost Structure:
Customer Acquisitions Costs: Low as compared with other
lending applications.
Distribution Costs: Low
Hosting Costs: Low.
Revenue Streams:
Revenue: Fees from Lenders and Borrowers.
Revenue Gross Margin: Average.
Confidential. For internal use only.14
Thank You
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