Credit risk

NAOS and IoTeX Introduce NFD in Credit Risk Assessments

Since the traditional credit scoring procedure focuses on reviewing financial statements, micro, small and medium enterprises (“MSMEs”) have difficulty obtaining loans from banks. Many SMEs cannot meet the standards due to a lack of financial data or confirmation of assets.

According to the International Finance Corporation (IFC), 40% of MSMEs in emerging markets have an annual financing request of $ 5.2 trillion, 1.4 times the current level of global loans to MSMEs.

While credit bureaus such as TransUnion, Experian, and FICO provide additional assessment assistance, their primary focus remains banking, loan, and financial data. So far, few non-bank entities have been united in their approach to this problem.

Additional data resources such as e-commerce transaction records, ridesharing data, mobile micro-loan repayment histories, cellular data and social media are used as Alternative Credit Scoring (“ACS”) for determine the financial and consumption adequacy of consumers in this area. growing market, allowing the penetration of banks and credit cards to be in double digits.

ACS integrates financial data with other data such as electricity / fuel consumption, delivery quality and warehousing operations to predict likely defaults. When the MSME company requests a loan, NAOS sends an API request to IoTeX to collect the alternative data needed for the credit scoring. The information is then sent to the NAOS credit engine, which is used for modeling and making decisions.

Pebble Tracker and other IoTeX devices collect verified data in the real world and make it available to blockchain dApps. Pebble Tracker is currently being tested in multiple supply chain testbeds, making it an ideal environment to bring trusted NAOS-IoTeX assessments to business customers. Additionally, IoTeX is continuously working on the TruStream protocol, real-world Oracle data designed to interact with all kinds of IoT devices since 2020, bringing an even wider range of trusted data from trusted devices to the blockchain.

IoTeX co-founder Raullen Chai said he is excited to be working with NAOS Finance to bring the real world and the cosmos closer to blockchain. Together, they are launching a new utility that uses real data from IoTeX-powered devices to provide reliable lending and borrowing and transparent real-world asset valuation.


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