Introducing LendLedger: The Future of Lending

Jun 6, 2018 · 3 min read

Lenders in emerging markets struggle to make loans to small businesses and informal sector borrowers, because they typically have no credit history or traditional financial documentation. LendLedger solves this information gap using open APIs, Stellar blockchain technology, and the LOAN digital asset.

The LendLedger network connects lenders with digital data, and records all lending market transactions, introducing transparency, trust, and efficiency.


A grocery store owner in rural India, with no credit history, needs a small loan.

How can the bank trust that the business owner will repay?

Without a file at the credit bureau, a grocery store owner in an emerging market is invisible to the traditional lending system.

However, he does use multiple digital services that collect vast amounts of financial data on him and his business. He may pay his mobile data and utilities bills via a mobile wallet, and he uses a mobile Point-of-Sale (PoS) device to accept customer’s debit cards.

The grocery store owner has a profitable and growing business, which should prove that he is an ideal loan recipient.

These transaction histories could support his creditworthiness to a lender, but most digital service providers don’t share data with financial institutions or credit bureaus.

Solution: LendLedger, Bringing Credit to the Developing World

How we solve this issue is straightforward: Make borrowers’ digital payment data accessible to lenders will bridge the multi-trillion lending gap between institutional lending money and informal borrowers.

The lending market needs an environment of trust and transparency that can connect Lenders with Borrowers’ data and enables tracked repayments over time. When the grocery store owner can securely and verifiably send their Swipe credit data to Mumbai Bank, and build their credit reputation over time as they repay the loan, then the informal sector breaks open as an affordable and accessible market.

By unlocking alternative credit data for the informal sector, LendLedger will create a new profitable market for Lenders, Data Providers (DPs), and other service providers.

The open network will enable financial growth in underserved areas as more Lenders get access to qualified Borrowers through LendLedger. LendLedger is designed to enable an efficient, affordable, and inclusive lending market.

The open and decentralized solution

We believe that centralization in lending creates gatekeepers, not only for business owners in Mumbai or Uganda, but also for entrepreneurs in America as well.

LendLedger uses the distributed ledger technology from the Stellar platform to create a trusted, open lending network. This enables trust between participants that never have to meet.

A decentralized approach is far more likely to reduce loan origination costs and massively scale up lending volumes.

  • Lenders can access the data they need to reach untapped market segments.
  • Borrowers gain access to multiple lenders and competitive rates.
  • Data-providers can monetize their data, now accessible to hundreds of potential lenders.

Born from Arth

LendLedger was created at Arth Labs, the technology and innovation arm of ArthImpact Finserve, an Indian lending venture. ArthImpact, under the brand name Happy Loans, collects data on potential borrowers by building relationships with digital service providers, including the country’s largest mobile wallet, largest independent point-of-sale, and major money transfer and rural commerce networks.

ArthImpact has already proven the huge opportunity of the MSME (micro, small, and medium-sized enterprises) lending market and in just over a year has disbursed nearly $7 million to over 13,000 micro-enterprises across 400 cities in India. LendLedger will build on this momentum with an open and self-governing ecosystem that will enable the continued growth of this burgeoning lending market.

Join Us and Stay Tuned

LendLedger is changing the face of lending for unserved segments. In the coming week, we’ll be sharing our Technical Paper for public review.

In the meantime, Get in touch as the LendLedger makes markets across the world inclusive.

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