Blockchain will help to automate credit scores

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In a patent application published on Thursday, the bank sets out a platform built on a blockchain that automatically generates credit ratings using historical and forecasted data of the borrower. The application, as described, offers a system that would use more data sources than existing credit rating systems, improving the crediting process when creating a permanent record.

It is noteworthy that the patent application of RBC indicates that it would redesign the credit rating system to provide greater transparency for users to understand how their scores are calculated. In addition, this new level of transparency would help users improve their estimates faster than is currently possible, according to the filling.

One way the system could work is by using of market information to analyze loan proposals based on existing credit histories. If you apply for a loan, the system would automatically determine which type of loan and lender would be appropriate before creating a unique smart contract that contains the terms of the loan.

In other words, a blockchain-based system would automate every step in the credit rating process through a more transparent system.

But still, it is unclear whether the system would use one single blockchain or several networks, or the RBC would be ready to build the system if the patent is granted.