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A patent application filed by Royal Bank of Canada describes a blockchain platform that stores credit records and computes credit ratings based on historical and predictive data. The patent application titled “Credit score platform” uses blockchain technology to store credit data.
The new system is designed to provide transparency to customers who often find it difficult to understand the manner in which the credit scores are calculated. The transparency will assist customers to improve their credit scores by altering their spending pattern.
According to the system, a credit score is calculated for borrower using disparate data sources to determine credit behaviours and attitudes as an assessment of the creditworthiness of the borrower. Example data sources include retailer data that can be processed to identify spending patterns, social network data to identify association with peer groups, insurance data to identify insurance claims, law enforcement data to identify traffic and legal violations, and so on.
The disparate data sources provide data to credit score platform to generate blocks of data elements that are stored on one or more blockchains. Each block is linked to a digital identity record. Different parties can provide data to generate blocks of data elements.
The individual associated with a digital identify record can receive notification of updates to blocks that make up their digital identify record. Updates to the digital identify record can occur in real-time or near real-time. Data records from different data sources can be linked to different identifiers of the set of identifiers. Accordingly, the set of identifiers can be used an index to generate a credit score and credit history record for the individual.
Blocks comprsing the credit scoring platform
The credit marketplace engine is configured to receive a loan search request with a set of parameters and identify the listing of loan offers based on the loan search request by comparing the set of parameters to loan data.
Interface unit – provides an alert and notification unit configured to generate a credit alert for the individual indicating the credit event and transmit the credit alert to the individual using the first set of identifiers. The credit alert provides a way to keep people apprised of their actions and its impact on their credit score. The interface unit also transmits a credit alert indicating the impact to the interface application.
Identity unit – configures the credit history application to interact with the scoring unit to determine an impact of the credit event on the credit history record of the individual.
Scoring unit – computes a credit score based on the credit history record of the individual and generate a credit score notification indicating the credit score and the credit event.
Advantages
• Traditional credit data used to generate credit scores is managed by credit bureaus and is received from a limited number of data sources. Credit score platform receives credit data from multiple data sources to generate the credit score and credit history record.
• Can verify or validate data sources and credit data to confirm reliability.
• Interacts with interface application to verify or validate data sources and credit data. Data sources can receive data from different databases.
• Receives credit data from an increased number of data sources to compute a credit score that more accurately reflects the credit worthiness of a borrower.
• Credit data can be received from data sources in multiple countries.
• Credit data from a data source can be linked to different identifiers of a set of identifiers for the individual,
