Blockchain By Oracle Powers Next-Generation Lending Modelbr>
Biz2Credit connects small business owners with lenders and service providers, thus empowering them to effectively compete with big companies, enhance their services and products, and grow their enterprises. The firm’s network consists of 50,000 users, 300 lenders, credit rating agencies such as Equifax, brokers including BizBuySell and major small business service providers such as HP. The company processes 3,000 loan applications each month and claims to have facilitated $400 million in funding since 2007.
Aurablocks is a blockchain consulting, training and software development company. The company implements enterprise level blockchain technology to global businesses using Hyperledger and proprietary smart contract languages. Aurablocks is one of Oracle Blockchain Cloud Service’s early-stage partners.
AuraBlocks said that it has created a “next-generation” lending model for Biz2Credit using the Blockchain Cloud Service. This service provides enterprise-grade blockchain capabilities and is able to accelerate innovation for on-premises enterprise resource planning (ERP) and cloud-based software as a service (SaaS) and platform as a service (PaaS) customers. Using the Blockchain Cloud Service, enterprises will be able to streamline operations across their ecosystem and expand their market reach with new revenue streams, sharing data and transacting within and outside the Oracle Cloud.
“They [Biz2Credit] thought there was an opportunity to help the borrowers lower their rates and get access to more money by using the blockchain cloud platform,” said AuraBlocks CEO Richard Brownstein. “But they didn’t know how to put it all together. We designed the technology on the Oracle Blockchain.”
AuraBlocks created a solution whereby lenders are put under less risk of fraud, which will then theoretically lead to increased deal flow and better-quality balance sheet loans. This will then be passed onto borrowers as increased capatial access and preferred lending rates.
“The analysis that was completed by our team reveals that implementing the AuraBlocks technology, developed on the Oracle Blockchain Cloud Service, could reduce our operational costs by 25% on a $1 billion book of business,” said Biz2Credit chief risk officer Venkatesh Bala. “This could be worth millions of dollars by recapturing lost revenue.”