Exclusive interview. Colendi - decentralized credit scoring and microcredit

Exclusive interview. Colendi - decentralized credit scoring and microcredit
Oct 29, 2018 by Rico Wise

BASE.INFO team has interviewed Eray Eren the CPO of Colendi project. We have asked the most topical questions to get acquainted with the project and to learn the future plans of the Colendi team.

Please welcome, Eray Eren.

Please describe your company/project in 2 sentences.

Colendi is a decentralized protocol that provides a democratized credit scoring evaluation with a unique self-sovereign ID which serves the unbanked and underbanked as a global and borderless financial passport. Our primary goal is to create an inclusive tool that facilitates microfinance lending. Colendi serves both businesses and individuals as a viable credit scoring mechanism and acts as a bridge between lenders, merchants and borrowers.

Why did you decide that blockchain should be the basis of your project?

We believe the technology will either boost or change the world. The biggest problem of the current scoring methodologies is the centralization because every system can be hacked in the centralized world even the most significant credit bureaus. Also, the current scoring systems are not transparent enough and thanks to the blockchain, all transaction will be shown in the network.

Another problem is the privacy of the user and thanks to distributed databases we can provide all control of the data to the user. Also, we want to create a borderless credit scoring protocol, and decentralization brings us to the borderless evaluation of the data.

Why did you launch the ICO? Was it the only option to collect the funds?

Colendi Token is designed to be an integral part of the Colendi microcredit platform as a utility. Its unique attributes and the utilization empowers Colendi applications to take it to the next level. We have launched a Colendi Token Sales campaign to distribute these tokens to the participants of the Colendi application. On the topic of funding, I must highlight that Colendi has already completed its seed funding and the product is being created as we speak with the funds that it received.

Briefly describe your team. Why these people became the engine of your project?

We have a strong track record and experience on Fintech ecosystem. Also, we’ve influential advisors who have experienced in both blockchain ecosystem and strong track record on finance ecosystem. We have a rooted culture in our team, and we believe that passion can change the world by combining with the disruptive technology and strong business that includes real-life applications.

What are the main centerpiece and the highlight of your project? What will attract the investors' attention?

We are creating a unique Colendi Score for each user, and the user can access to financing via Colendi Score, so the highlight of our project is the unique score because with this score we build a decentralized credit bureau that serves globally.

The most significant differentiation with other scoring methodologies are the Colendi Score is more comprehensive than others because we evaluate users' creditworthiness with 5 main dimension - demographics, mobile phone usage, social media, data partner-based data, and past credit history, and these patented methodology helps us to provide 5C's of credit (capital, collateral, character, condition, capacity).

What are your thoughts about ICO marketing? Can it be really effective due to all the restrictions and other phenomenas?

ICO marketing is a different type of beast. One that has its ecosystem, different type of habits and people. We have been very careful to create our own community, be open and honest with them, not leading anybody anywhere with false promises. We are one the few, if not only, projects that gave Ether on mass bounty campaigns.

Our community is not waiting for our token to come out, they already have participated in our campaigns, competitions, and surveys and received their amount. Although we have enjoyed the growing amounts of people interested in our project, we cannot wait for our product to come out and combine this ICO marketing with the "normal" marketing plans that we have already prepared.

I believe that the ICO market's recent rise and fall through the community very important lessons. Every cryptocurrency investor and aficionado witnessed the disappearing projects and lost investments. An ICO is an important step in a project's life, one that makes it possible global community to fund the projects as they please.

However, the community found out that the projects are not what they are represented to be on a website or a whitepaper. There are more to look for and see. I believe that regulations and restrictions are not the reasons pushing the prices down and ending so many projects, but the projects and teams that exploited the bull market. Hopefully, people will be cautious next time picking out the projects.

Why is your project better than your competitors?

We can talk about two big competitive advantages.

First one is unique products and their usability. Colendi produces a Score and ID for each user that is original, scientific and agile. The type of agility Colendi presents cannot be matched by any bank at the moment. Colendi enables a fast decision-making process, for every participant in the system regardless of their having an account in a certain bank. None of the other competitors can create a genuine well-rounded score that is connected to their verified ID.

Secondly, the team of Colendi and the founders is also a plus. The founder and team have already founded a payment and prepaid card application that has reached 2.5 million users in its country. These users are mostly unbanked, and therefore the team has had the chance to learn a great deal about the problems, lives, and expectations about the unbanked population.

What are the major ways of monetization for your project?

Our monetization model based on our tokenomics which are designed by our skilled engineers with the consultancy of Consensys (Token Foundry) team. Basically, our revenue streams are scoring query fee (it can be categorized as a service fee) and commission fee (it can be categorized as a transactional fee).

Which markets are the most attractive for you right now? Do you take in consideration the USA and other countries with the legal restrictions for the crypto crowdfundings?

We must not forget that Colendi is more than a token and at the beginning of next year, we will have a product on the market. Colendi is designed to be a global and borderless application, and we will work for this goal as long as we can, and we can already see that our community, I have to say from various places of the world, is supporting us to achieve our objectives.

Regulations are very important for us, and under no circumstance, we will do something contrarian to the law. I have to mention that Colendi team took the safest way when these regulations were still under process, and we have followed what our legal advisors told us to do. With the current laws in China, USA, and other countries, we will keep on abiding the law and play the game according to the book.

Describe your project in 3 years? Will it change something in the world?

We can change the world using disruptive technology and the solution of the fundamental needs of the world population because we believe that the whole population can access to financing easily. Thanks to Colendi Score that is a global and democratic way of credit score everyone can access to financing easily and globally. Becoming the development of the technology, especially blockchain, we can build a system that is protected the privacy of the user, and we can create a trustless system.

So, the user can get a credit score with own data, and all control of the data can be kept under the user's control. With this vision, we will create a decentralized credit bureau, and we will democratize the financing in the world in 3 years.