SOFIN (social financial network) —P2P-lending online service.
It is a marketplace platform which brings together creditors and borrowers:
• Creditor — private individuals, banks, microfinance organizations and funds;
• Borrowers — private individuals, individual entrepreneurs and organizations.
Loans are issued in the fiat currency of the country where the borrower resides.This allows the currency to be exchanged through the SOFIN token if the creditor and the borrower are from different countries.What we have achieved so far:
• A fully developed financial model;
• A package of legal documents to issue loans is established;
• The design of the interface is elaborated;
• App domain logic is implemented on 45%.
Why is the P2P-loaning market growing?
Growth prospects of this segment have already been confirmed in European countries and the USA. The world volume of the P2P-lending market exceeded $50 billion in 2015 and, according to Morgan Stanley, will reach $300 billion in 2020.
Such a high potential is possible due to the low start point. In the USA the size of p2p-loaning market was less than 1% by 2015, and the volume growth was enormous: 123% of the year.
The benefits of direct lending are obvious:
• Rates are loweress;
• Credit approval speed is higher;
• In the open marketplace creditors and borrowers are more transparent and easier to negotiate.
Why have we chosen P2P-lending?
We have professionally engaged in microloans since 2011. The first project «Expressmoney» was launched offline and comprised 12 locations of issuance by the end of 2011. Having gained the experience of creation and development of «Expressmoney», we have learned that a microfinance industry was emerged in Russia. The rate of requisition processing is the main advantage of microfinance organizations over banks.It is gratifying to note that there were no defaults in all cases. There were two cases of delay, but together with the borrower, we closed both loans. At present, our private portfolio of microloans exceeds 100 $ million (over $1.5 million). Moreover, demand is far greater than the supply.It was at the time of the shortage of funds to provide loans that the idea of a P2P platform emerged, and the technical partner, represented by the Elonsoft company, joined the project.
The system uses the Ethereum ERC 20 platform. The SOFIN token performs many functions on the system. Encouragement of participants in a transaction to increase the number and quality of transactions in the system. The more turnover of issued loans is in the system, the higher the cost of the token, since the entire fee will be taken in SOFIN — they will be automatically bought out from the exchanges to repay the fee. The history of all transactions will be stored in blockchain. Up to 20% of the loan will be available to be given in the SOFIN tokens. SOFIN will also be an intermediary between the exchanging of one fiat currency to another. Let’s look at all of these features in detail.