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NAOS and IoTeX Introduce NFD Into Credit Risk Assessments

NAOS and IoTeX Introduce NFD Into Credit Risk Assessments


Since the traditional credit rating procedure focuses on examining financial statements, Micro, Small, and Medium Enterprises (“MSMEs”) have difficulty acquiring loans from banks. Many SMEs cannot satisfy the standards due to a lack of financial data or confirmation of assets.

According to the International Finance Corporation (IFC), 40 percent of emerging-market MSMEs have an annual funding demand of $5.2 trillion, 1.4 times the present level of global MSME lending.

Despite credit bureaus such as TransUnion, Experian, and FICO, offering further evaluation assistance, their primary focus remains on banking, lending, and financial data. Until now, few non-banking entities were united in their approach to this problem.

Added data resources such as records of e-commerce transactions, ride-hailing data, mobile micro-loan repayment histories, cell data, and social media are used as Alternative Credit Scoring (“ACS”) to determine consumer financial and consumption fitness in this growing market, allowing banking and credit card penetration to be in low double digits.

The ACS integrates financial data with other data like electricity/fuel use, delivery quality, and warehousing operations to forecast probable loan defaults. When the MSME Company requests for a loan, NAOS sends an API request to IoTeX to collect the alternative data needed for credit rating. The information is subsequently sent to the NAOS’ credit engine, used to model and make decisions.

Pebble Tracker and other IoTeX devices gather verified data in the real world and make it available to blockchain dApps. Pebble Tracker is presently being tested in several supply chain testbeds, making it an ideal environment for bringing NAOS-IoTeX trust ratings to business clients. In addition, IoTeX is continuously working on TruStream protocol, a real-world Oracle data designed to interact with all kinds of IoT devices since 2020, bringing an even wider range of trusted data from trusted devices to the blockchain.

IoTeX co-founder Raullen Chai said they are thrilled to work with NAOS Finance to bring the real world and blockchain cosmos together. Together, they are launching a new utility that uses real data from devices Powered by IoTeX to provide trustworthy lending, and borrowing, and transparent valuation of real-world assets.



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