Trust scoring allows separating good borrowers from less good borrowers. Good borrowers will receive better conditions and vice versa.
SmartCredit.io uses the trust scoring engine of https://smarttrust.io, which is seamlessly integrated into SmartCredit.io.
Trust scoring is relevant only for borrowers; it’s not relevant for lenders.
The trust score is based on the following calculations:
AI-based blockchain analytics of inflows and outflows from the Ethereum account
Psychometric analysis of text
Social graph analysis
AI-based blockchain analytics are done for every account automatically in the background.
Psychometric analysis and social graph analysis are voluntary. However, they allow for improving the trust score. Borrowers can use them or decide not to use them. However, these are the means to directly monetize the trust score.
A better trust score means:
Fewer payments into the Loss-Provision Fund for the borrower, which means less interest to be paid for the borrower