INSPIRATION

With the spread of COVID-19, the world experienced an economic downturn. In the Philippines alone, around 4.6 million people lost their jobs due to the pandemic. With the loss of income, buying necessities, affording education for children, etc. became a hardship. Banks tightened their loan standards, making it difficult for a majority of people to apply for loans.

As citizens, the team wanted to help the members of the labor force who have lost their jobs by creating FINFLO. FINFLO helps those in need the digital way. It gives people access to micro-loans the digital way - without the hassle and risk of going outside and applying in person at banks. At the same time FINFLO provides a sustainable and efficient platform for NGOs (non-governmental organization) and individual investors to offer financial assistance to those affected by the pandemic.

WHAT IT DOES

FINFLO enables people affected by the COVID-19 pandemic to apply for specific micro-loans such as grocery loans with MINIMUM REQUIREMENTS and NO COLLATERAL to be rendered by the applicants. Using the system’s client profile, an application form is filled out and identification cards are submitted. Once the loan is approved, the loanee would then receive a QR code instead of cash. The QR code is used to pay for items (ie. pay for groceries) and is also used to monitor that the money loaned is indeed used for the applied need and not just for any vague reason.

The system also has an investor profile wherein individual people with investing power can grow their money and at the same time help those in need. The investor profile is also used by NGOs whose impact investments would be used as collateral for the micro-loans. Their investment is posted in Fusion Equation under a single FINFLO deposit account. This FINFLO deposit account will be used as collateral deposit. The FINFLO collateral deposit will then be assigned to a loan.

All the transactions of investors' deposits, clients' loans and the actual assignment of FINFLO deposit as collateral to the loans are saved in Blockchain. This technology plays a vital role in customer background checks since the information is immutable

HOW WE BUILT IT

FINFLO makes use of the latest FusionFabric.cloud Equation System, Blockchain, and QR code technology. Git, JavaScript, PHP, jQuery ,and CSS were used in the overall system development.

FusionFabric.cloud

FusionFabric.Cloud Equation System guarantees functionality with the utmost quality to offer. The following modules were used:

  1. Consumer Banking / Account Management Term Deposit Onboarding (1.1.1)

    • Creates and updates term deposit under FINFLO's account in Equation.
  2. Consumer Banking / Account Management Loans (1.0.6)

    • Creates the client loan
  3. Consumer Banking / Loan Management Collateral Assignment (1.0.7)

    • Setup FINFLO's deposit account as a collateral and assign it to an accepted client loan.

Blockchain

Records of deposit and loan transactions are recorded in FINFLO’s local database and placed in blockchain as well Blockchain is used to ensure the security and integrity of the sensitive data stored in FINFLO, such as IDs and loan repayment history. Data entered are fully encrypted and placed into the chain once the loan is approved by the Equation System. Two types of data will be stored. First, data provided by the applicant such as name, address, IDs, and other necessary information to be processed. Second, events that occur during a loan’s life cycle (e.g. repayment amount and schedules, or payments missed).

Furthermore, another advantage of using blockchain is that it cuts down transaction speed to minutes or seconds since individuals can directly view the ledger of transactions updated through consensus (Hassani et al., 2018). Blockchain uses decentralization to speed transactions further as transactions are made in real time – no need for intermediaries for processing transactions as data are immutable through cryptography (Hillsberg, 2018.). Background checks will also not be needed anymore once a borrower is already in the system.

QR Code

QR codes are granted to approved borrowers instead of cash. Each loanee will receive a QR code, that he/she will use to pay for goods/services. E.g. The approve loan is for grocery consumption. The QR code will only be successfully scanned by grocery stores. If the QR code is attempted to be used to pay anything else such as a luxury bag, the payment will not go through.

FINFLO's ADVANTAGES TOWARDS HUMANS

• Enables us Filipino to acquire fast loans in which helps them pull through the disadvantages the coronavirus pandemic and calamity brought upon to them.

• No collateral needed, which helps the less privilege to acquire loans without using any of their assets as a collateral.

• NGOs as potential investors based on the PSA 2020 report, around 14 out of 33 support and partners towards CSR projects and finance.

FINFLO's ADVANTAGES TOWARDS BUSINESS

• Timeliness- both Covid-19 and post Covid-19. FINFLO is applicable since many possible calamities occur within the Philippines (due to being in the pacific ring of fire.)

• NGO, LGU and private sectors invest towards this platform, creating sustainability.

• Percentage cut for the interest earn by the investor to be regulated under the Issues BSP guidelines towards interest rate of 2020.

• Transaction fees are regulated within the consumer act of the Philippines to have a win-win scenario towards the loaners, investors and FINFLO.

CHALLENGES WE RAN INTO

  1. Familiarization with the needed FFDC APIs.
  2. Projects and BAUs constraints.

ACCOMPLISHMENTS THAT WE'RE PROUD OF

  1. We were able to create an application that resolves a specific issue in our country Philippines.
  2. We know that this app can definitely help.

WHAT WE LEARNED

  1. FFDC APIs.
  2. Being juniors/new joiners is not a hindrance in making a difference.

What's next for FINFLO

If given support, we want to fully develop this app to the point that we can implement it and have exposure through social media and other medium. We want to see this app helping our Filipino countrymen in need the digital way.

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