Pave, the innovative online lender, announces the start of the pre-sale period for its upcoming token sale scheduled for mid-October. This token sale will fund the launch of Pave’s new product – a Global Credit Profile (GCP, http://gcp.pave.com). The pre-sale is restricted to accredited investors only.
While the traditional credit bureaus such as Experian, Equifax and TransUnion continue to perform a valuable service by acting as a reliable source of information for third parties, they are plagued with systemic problems including a lack of transparency and control over personal data, vulnerability to fraud and data theft.
One of the key benefits of Pave’s new product is the decentralized and encrypted storage of individuals’ financial data in the blockchain. Rather than a corporation owning and controlling such sensitive information, Pave’s GCP allows each user to store their own encrypted data securely and thereby removes the threat of a central attack affecting millions.
Oren Bass, Pave’s CEO says: “Pave’s new product builds on our 5 year history of lending to those with limited credit histories. GCP will enable an individual to contribute to building a more complete and accurate picture of his financial health, than one provided by traditional credit bureaus. Those with limited credit history, such as immigrants, millennials and new to credit suffer most under the current system. They find themselves caught in a catch 22 situation of having to have credit to obtain credit. Consequently, lenders often only see a partial picture and view such borrowers as risky and ineligible to access prime credit.”
It is estimated that just in the U.S. about 45 million people are kept on the margins of the financial system because they do not have credit records that can be scored. Shockingly 70% of the millennial population in the U.S. have subprime credit scores despite data showing them to have better credit risk than elder population. Pave’s GCP uses data that is currently being ignored by traditional credit bureaus, such as bank account spending data, alternative payment data and educational achievements. By enabling a user to enrich their own credit profile the GCP would help to realize Pave’s mission to unlock access to credit to millions of mispriced consumers.
Pave, a VC-backed company, was founded in 2012 by with the mission to utilize technological innovation to democratize access to funding. Pave has created as an online lending platform focused on providing those with limited credit history access to credit. Pave’s innovative approach to lending enabled the company to successfully lend to nearly approximately 1700 individuals with “thin credit files” totalling close to $23 million in loans.