Singapore-based blockchain data collaboration protocol Points announced it raised $8 million in seed funding for the development of a data collaboration protocol for more accurate credit scoring. The solution is aimed to facilitate access to credit financing for the world’s unbanked population, estimated at 1.7 billion, as the configurable protocol “encourages trustless entities, including banks, institutions, tech companies and consumers to participate in sharing their proprietary data”, Points said in a press release.
The company will use blockchain technology and artificial intelligence to develop the configurable protocol which should minimize the risk to banks and other credit institutions who would otherwise not offer loans to high-risk clients, the so-called “unbanked” and would allow such people to gain access to loans and financial products at more favorable interest rates.
The funding round was backed by “prominent venture capital” that includes DHVC, Cherubic Ventures, Ce Yuan, Ontology Foundation, Nest.Bio Ventures, and Zhong Cheng Xin Credit Technology.
"With the support of our VCs and partners, we're excited to be able to launch the first and most accurate market-ready blockchain-based credit network," said Sarah Zhang, Founder of Points. "Our vision is to serve the underrepresented community, and with blockchain as a core technology for Points, we're able to incentivize partners to participate in risk-free data sharing, which combined with AI, means truly accurate credit scores."
Points has already established data sharing partnership with China’s largest credit rating institutions - Zhong Cheng Xin Credit Technology Ltd., and Teleinfo, owned by the Ministry of Industry and Information Technology and has the data of over 500 million credit profiles and 1 billion identity profiles. It will be used to “train” and refine the AI behind the project.
Points was founded in 2017 by Sarah Zhang and Kate Shen. It touts itself as “the first truly scalable blockchain data collaboration protocol for better credit scoring and inclusive finance, providing the unbanked with access to fair financial services”. Points has offices in Beijing and San Francisco.
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