Distributed ledger technology, or blockchain, is becoming the disruptive force in financial services. We are pioneers in applying this emerging technology to reinvent and diversify investment possibilities in credit products originated by non-bank lenders.
We are cutting out the traditional intermediaries in capital acquisition by introducing simple, transparent business framework and employing immutable ledger technology to integrate processes for balance sheet lenders and institutional investors.
The solution introduces new financial instrument in the credit industry - loan receivables split in future payments, enabling unprecedented tracking capabilities back to the data source. Technology provides undeniable evidence that loans are paid out or repaid. Investors gain 100% clarity about the performance of their investment portfolio. All in real time.
Granular split of the investments adds additional features for investors, like ability to organize their investments based on geographic or time dimension. It also allows for gradual trade of the loan parts based on their expected risk allowing to revitalize the secondary market approach for the whole asset class and introduce new analysis and modeling tools.
The loan receivables are stored on a distributed permissioned database where the copy of the same database is installed with the Originator and the same copy with the Investor. By adding technical features like digital signatures of each activity done by parties, this database is a backbone for the long term trust among the parties, serving as a transaction verifier, custodian and audit trail.
Factury, Inc., 55 East 3rd Avenue, San Mateo, CA 94401