Is Blockchain the Future of AI-Based Micro Financing Solutions?

Key Takeaways:

• Cognitochain is pioneering the use of blockchain and AI technologies to transform the microfinance sector.
• The London-based startup seeks to automate credit application, approval, and payments through an open blockchain platform.
• CEO Srinivas Anala believes microfinance institutions and non-bank financial companies stand to gain from using the Cognitochain platform.
• Blockchain can increase security, efficiency and transparency in the lending and credit scoring process if widely adopted.

Emerging technologies like blockchain and AI are heralded as transformative for more than just the usual suspects of fintech and banking. Witness the rise of Cognitochain, a startup company based in London that has married the two technologies to great effect, aiming to revolutionize how micro finance is managed and administered.

Cognitochain’s blockchain-based platform serves as an automated, open platform for Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs). In addition, the platform offers digital identity and AI-based credit scoring services, addressing some of the biggest challenges in microfinance today: transparency, security, and efficiency.

Unlike traditional financial players, Cognitochain leverages blockchain technology to streamline credit application and approval processes. One thing that sets the company apart is its use of AI-based credit scoring services. This novel approach not only hastens the credit scoring process but also introduces a layer of objectivity as decisions are made based on data instead of judgement calls.

The startup also maximizes customer identity security through blockchain. Since blockchain is a decentralized technology, customers’ identities are not stored in a central location, reducing susceptibility to breaches and cyberfraud. The use of immutable logs, traceable histories, and authentication features also boost the transparency and accountability of all transactions made.

As Cognitochain continues to evolve, the future certainly looks promising. The combination of blockchain and AI in offering microfinance solutions has the potential to significantly improve financial inclusion, making credit more accessible and affordable for millions of people worldwide. It comes as no surprise that leading NBFCs and MFIs are showing keen interest in implementing this technology.

Blockchain is slowly but surely proving to be the future of AI-based micro-financing. Only time will tell how widespread this innovation becomes. For more details about Cognitochain, their milestones and future roadmaps, you can follow the links here: Twitter, LinkedIn, and their website.