Technology and data advancement is rapidly providing us with tools for greater and data-driven insights. We are looking at new ways to solve old, longstanding problems.
LenddoEFL is a fantastic example. Through data and tech, LenddoEFL provide financial service providers, all around the world, an alternative tool to help measure a consumer's creditworthiness.
We know that blockchain technology walks hand in hand with disruption and innovation, therefore, we wanted to hear what the pioneers at LenddoEFL's thought on this hot-topic.
We had a chat with Jeff Stewart, LenddoEFL's Co-Founder & Chairman, who shared some of his insights into the use of blockchain for companies and how it can impact consumers. Check it out!
"The new innovations are opening up the possibility of consumers having more control over who sees what information when and being able to track who has seen it."
1. How do you see Blockchain Technology supporting LenddoEFL’s business?
At LenddoEFL, we are convinced that blockchain is one of the most innovative technologies since the public internet. We are also convinced it opens up opportunities for further providing access to financial services, cheaper and more conveniently. Since we started LenddoEFL in 2011, we have been continually innovating, anticipating the future and exploring new and upcoming technology solutions, and blockchain is one of these.
We have already successfully deployed our solution in the Ethereum blockchain ecosystem, where we are able to seamlessly provide our services and automate decisioning in smart contracts. As distributed ledger technology is further developed to reduce friction across the customer lifecycle, we believe we can further help lenders make better decisions and extend financial services to the unbanked. Blockchains, smart contracts and new cryptographic distributed architectures will allow us to do this faster and with less friction.
2. Will Blockchain be helpful or a hindrance for consumers owning their own data? How do you see the help or hindrance affecting the consumer?
It is too early to say for sure, but the technology is evolving very quickly. The new innovations are opening up the possibility of consumers having more control over who sees what information when and being able to track who has seen it.
One critical part to remember is that although the Zero Knowledge Proof offers exciting opportunities, consumers face similar challenges that exist today with regard to understanding what data is being put on the blockchain. If a third party uses the blockchain thoughtfully, they will not include any personally identifiable information (PII), but rather just identifiers. This means that the consumer still has the right to be forgotten, and maintains the ability to control and delete their data.
On the other hand, if a third party puts your data or your PII directly on the blockchain, it is permanent and unalterable and potentially accessible to anyone. This is absolutely unacceptable in our view, and problematic for consumers.
With the rise of GDPR protecting European consumers’ data, the Facebook scandal, and at the same time PSD2 putting the consumer in charge of their financial data and allowing it to be shared, it will be interesting to see how the blockchain can facilitate better control and ability to share when so desired.