Pave Loan, found online at Pave.com, promises to remove barriers to affordable credit. Find out how it works today in our review.
What is Pave Loan?
Pave is a decentralized credit bureau. Like other blockchain-based lending platforms, Pave aims to disrupt today’s credit industry. It aims to give borrowers a better, more affordable source of liquidity, while allowing lenders to earn higher interest rates by lending out money.
Pave Loan isn’t some flashy new startup: the company was founded in 2012. Since launch, their goal has been to “utilize technological innovation to democratize access to funding.” The platform has been on the market for 5 years.
“Having worked with all the major data providers and credit reporting agencies here in the US we have realized that the industry is plagued with a fundamental data problem and that traditional, centralized credit bureaus are at the heart of the problem,” explains Oren Bass, CEO of Pave Inc.
Using blockchain technology, Pave plans to launch a Global Credit Profile. That Global Credit Profile will function like a modern credit report. It takes more information into account when creating your credit score. So instead of being ranked exclusively on your ability to pay a credit card bill, you can be ranked on your bank account spending data or social data, among other indicators.
With that in mind, let’s take a closer look at how Pave works.
What Problems Does Pave Seek to Solve?
Pave believes there are huge, systemic issues with the way consumer financial data is handled. Today, nearly 2 billion people worldwide are unbanked – not because they choose to be unbanked, but because they can’t access conventional credit services. They don’t have a credit history with a centralized credit bureau, for example.
With that in mind, Pave aims to solve all of the following problems:
- Individuals lack ownership and control over their financial data
- Credit reports tell a partial and inaccurate picture
- Credit is local rather than global
- Access to consumer financial data is costly
- Consumer data is not secure and open to fraud
When Pave talks about 2 billion unbanked individuals, it’s natural to assume that most of these people are in developing parts of the world – like parts of Africa and Asia. However, Pave.com points out that 45 million consumers in the United States don’t have access to credit due to the lack of a scoreable credit report – so obviously, this is a problem for people around the world.
Pave aims to solve that problem – and others – using a decentralized credit scoring platform.
How Does Pave Loan Work?
Pave aims to build a better credit report, where users have visibility and control over their financial data.
To build that platform, Pave is relying on its 5+ years of experience in the lending space. The company has 1600+ borrowers in its network, and has processed $700 million in loan applications (giving out a total of $22 million in loans).
The core of the Pave platform is the launch of their Global Credit Profile. That Global Credit Profile will allow users to have visibility and control over their financial data, which means they’ll have better access to the financial products they deserve.
Here’s a basic overview of the core features of Pave and the Global Credit Profile:
Control and Transparency: Users have complete control over their financial data. Users can decide who can access their data.
Global Decentralized System: The Pave GCP functions without borders, empowering financial institutions all over the world to make faster, better decisions on potential customers.
Rewarded for Sharing your Data: Individuals become the source of data and receive rewards for sharing that data instead of having to pay to access.
Secure Data: Blockchain-related technologies allow data to be decentralized and safe from a central cyber attack.
The end result is that consumers can use their GCP to build a complete financial profile that includes a wider range of sources than traditional credit bureau data. The GCP will include account data from credit cards, for example, rent and utility payments, and more.
Before the end of 2017, Pave aims to launch their Global Credit Profile in MVP form. That MVP will have the ability to connect traditional credit data and bank account data, share data on a permissioned basis, and automatically connect data to the Data Vault in an anonymized way.
How to Use the Global Credit Profile
The Global Credit Profile platform will be available through the GCP App. Users can download the app to begin creating their financial profile.
Users can use the app to group financial data into three different categories:
Traditional Credit Data:
This is the data that is captured on your current credit report, like the one you get from Experian and Equifax. It includes information about your credit cards, student loans, and instalment loans, among other information.
Pave’s Global Credit Profile will also take into account “alternative data”, which includes bank account spending data, self-reported data for rents and utility bills, and educational/award achievements. Although some of this data is self-reported, it’s also easy for creditors to verify.
Social data can be collected from Facebook or Twitter.
When a user connects all three types of data on their profile, they’ll be deemed to have a “Complete Profile”.
Who’s Behind Pave?
Pave is led by Oren Bass, CEO and Founder. Other key members of the team include Ilan Bass (CMO), Jeppe Degnbol (CFO), and Conor Up (Lead Engineer).
Pave was founded in March 2012. By 2013, the company had launched its initial product called Income Share Agreements. 60 people entered into these contracts, leading to a total of $600,000 in funding.
By 2014, they had launched their Pave loan product, which led to the creation of a nationwide lending platform. IN 2017, the company decided to branch into the world of blockchain technology. The MVP for their GCP platform is scheduled to launch before the end of the year.
How Does the Pave Token Work?
The Pave platform will use the Global Credit Access Token. Users wishing to connect and share financial data will be granted a token for free. Those who wish to purchase data from the platform will be required to buy a number of Global Credit Access tokens. The more data you’re requesting, the more tokens you’ll need to purchase.
Dates for the Pave token sale have not yet been announced. However, the token sale is listed as “coming soon” on the official website.
Pave Loan Conclusion
A number of blockchain technology companies are seeking to disrupt today’s centralized credit bureau industry. Pave is one such company. It’s not a brand new startup: the company was founded in 2012, and has provided millions of dollars of loans to hundreds of members over the years.
In 2017, Pave started to develop a platform called the Global Credit Profile. In the future, users will download the Pave Global Credit Profile app, then fill out their profile with relevant details – including “traditional” credit info like loans and credit card information, new credit info like bank account spending data, and innovative information sources like Facebook and Twitter data. Consumers can control access to this information, and share their information to creditors in exchange for token payments.
To learn more about Pave and how the platform works, visit Pave.com online today.