Poland Bets on a Blockchain for Credit Scoring

The Polish Credit Office Biuro Informacji Kredytowej (BIK) –considered one of the largest credit bureaus in Central and Eastern Europe– partners with Billon on rolling out a Blockchain-based solution for securing and storing Polish consumers’ credit scores. Relatively similar applications have been tested, yet not by a credit bureau.

The FCA registered e-money institution Billon was founded in 2012; they have offices in the UK, US and Poland. The Polish credit office BIK for its part monitors roughly 140 million credit histories for 24 million people and 1 million businesses in Poland.

Billon’s Blockchain-based solution is fully GDPR-compliant (regulation to apply as of 25 May 2018). It will allow financial institutions to interrogate sensitive data regarding their customers, including their credit score, as well as extensive content, and certify it. BIK already plans to expand this solution to encompass a digital signing process. The banking institutions which have been taking part in their pilots since 2017 could then feature a full-digital subscription process for their borrowers, and instant approval through interrogating data stored by BIK using a Blockchain.

Data storage will then be safer, faster, more transparent and entirely traceable, making it possible to ensure that the customers’ “right to oblivion” is complied with as required by the GDPR.

Comments – Blockchain and credit: one-of-a-kind, promising pilot

Longstanding players (such as RBC) and FinTechs (Equifax, Upgrade or ID Finance) have been focusing more on automation for credit-granting processes and ensuring that their customers’ personal data is safe. They for instance rely on Artificial Intelligence tech and Blockchain protocols. DLTs make it possible to share information in real time with all involved parties, and guarantee traceability.

This information combined also allows for the customers’ credit scored to be irrefutably calculated. It is then logical that credit bureaus should be interested in this technology. Besides, the Blockchain would help them track even more information, including purchasing history, through partnerships with card issuers or e-commerce platforms. Some pilots have already been planned: Celsius, for instance, applied the Ethereum Blockchain to scoring activities. BIK still stands out as the first credit rating agency to study such a solution.