The Royal Bank of Canada (RBC), reportedly the rustic’s biggest financial institution, filed a patent for a credit score rating platform the use of Blockchain generation this previous fall, consistent with the patent software from the USA Patent and Trademark Office launched March 15.
The patent describes a Blockchain-based credit score rating platform the place “credit records are recorded using blocks linked by identification data. The credit record stores historical and predictive information about borrowers used to compute credit ratings.”
According to the patent, the normal method of calculating a credit score rating is “not transparent”. Customers aren’t at all times knowledgeable when positive knowledge impacts their credit score rating, nor do they “have the tools to take control of their credit score.”
With disbursed ledger generation as described within the patent, consumers can be “notified when third party credit checks happen or when the credit score changes.” For instance, in relation to a ignored invoice cost that negatively affected their credit score rating, customers can be despatched a credit score alert.
With the proposed Blockchain credit score rating platform, a “helpful visualization” of the entire knowledge fascinated with figuring out a credit score rating can be to be had, thus “empower[ing] a borrower with credit knowledge.”
The patent additionally notes that the proposed credit score rating platform would be capable of obtain credit score knowledge from extra assets than a standard credit score bureau.
This isn’t RBC’s first foray into virtual ledger generation. In September of ultimate yr, the financial institution introduced that they had been the use of the Blockchain-based Hyperledger to shadow US-Canada interbank settlements. The CEO of RBC had additionally praised Blockchain ultimate fall, noting that it has a “chance to transform everything from our capital markets, and our trading businesses, our security settlement businesses, right into our retail franchise.”