Colendi FAQ

What is Colendi?
Colendi is a decentralized credit scoring and microcredit protocol. It uses its patented machine-learning algorithms to generate a Colendi Score that will serve as a financial passport for its users. These users will then have access to microcredits, installment shopping, and p2p financing. Colendi is specially designed to serve the unbanked/underbanked, but is perfectly capable of benefiting people who participate in the formal financial institution.
Colendi's mission is to give a financial score and identity to anyone in the world and ensure their safety and privacy. We've designed a self-sovereign digital identity and financial score that will able to be used in real life. Colendi creates a collaborative platform where Colendi users, merchants, data partners, lenders and data integrators can come together and benefit from one another.
Existing credit scoring systems only evaluate the 27% of the global population, leaving out the majority of the world. They rely heavily on past loan repayment and credit history, which puts the underbanked at a huge disadvantage since they do not have the robust financial track record or rapport to be scored by traditional credit bureaus.
Colendi operates on the blockchain or p2p file storage system like IPFS. It takes into account a variety of real-time, non-financial information which is transformed into a financial credit score using machine-learning algorithms. Because of our efficient process, we can give our users a financial score instantaneously so they can utilize it to access financing.
The Colendi platform gives an equal opportunity to all, banked or unbanked, to use microcredits and installment shopping via merchants associated with Colendi. Colendi users will have global access to microcredits, installment shoppings, p2p transactions, p2p financing, reliability measurement with lower costs in real-time.
When the Colendi users gain access to microcredits, merchants will likely experience a spike in their sales and enjoy the exclusivity that comes with being a Colendi partner. Colendi also runs an assessment on users that ensures that merchants and lenders know the financial reputation of users they choose to work with.
Data partners are those who share their transactions data of individuals with the Colendi ecosystem. With the Colendi algorithms and smart contracts, these data partners will be able to benefit from sharing their databases without having that information being exposed.
Lenders will be able to expand to untapped markets, work with new customers and experience operational ease. Additionally, they'll have lower costs compared to the traditional credit scoring methods associated with lending and the opportunity to adapt to different user preferences.
Data integrators are the individuals or companies who integrate users, merchants, lenders, data partners to the Colendi ecosystem. These people can be constantly get rewarded for the transactions made by the parties they had integrated into the system. Colendi data integrators play a vital role in the expansion of Colendi business and network growth; therefore, their contributions will be constantly rewarded.
Colendi users authorize our protocol to read through data related to their smartphones, social media, purchases and more than 1,000 personal data points. Users will then access the benefits that Colendi provides such as microcredit, installment shopping, peer-to-peer finance, and more.
The score that Colendi provides for users is global, borderless, mobile, well-rounded, objective and adaptive to lenders' preferences. Colendi does not rely on central and monopole scoring systems, and enables real-time credit decision making.
In addition to 1,000 other various data points, Colendi uses the following to determine a Colendi Score:
  • Smartphone data
  • Social media data
  • Transaction data
  • Blockchain credit history data
  • Personal data
The Colendi application is set to launch in February 2019. Until then, the alpha and beta stage products will be rolled out and Colendi algorithms are being used on the testnet right now. We have recently announced the related information about the alpha and will be announcing the beta product release dates every soon.
Colendi application will initially be launched in Turkey. Right now, Colendi has completed several demos with contracted partners and is still developing its product with the collaboration of some of the local merchants and data partners. Following that, Colendi will roll out in other developing countries like Indonesia, Malaysia, Dubai, South Africa, Colombia etc.
Colendi application requires local partners, such as lender parties and merchants in every market where Colendi is launched. In order to provide a better user experience, every single market expansion will be operated separately.
Colendi Token, in short COD, has two utilities. The initial utility of Colendi Token is to enable lenders/merchants access the Colendi platform as well as to run score queries and check the creditworthiness of their customer prior to issuing microcredit.
Complementary to this utility, the Colendi Token will also be staked by lenders and data integrating parties to bootstrap the network that is backed by a reward and disincentive mechanism.
Colendi services are not paid services. We are a credit scoring platform and our objective is to serve global population. Our operations are designed to have zero costs to the user from Colendi's side. As a borrower you may agree upon certain terms with the lender, in this case, Colendi just acts as the platform to bring you and the lender together for an agreement. All in all, Colendi users will never be made to pay any extra fees unless they declare their consent to the third parties to utilize their financial tools.
Colendi means "refined and well-educated" according to Wikipedia
Blockchain technology is an innovation where the encrypted smart contracts are communicated through and protected on distributed and transparent ledgers. These ledgers or the chain of blocks are considered to be unhackable and unalterable thanks to the transferrable and stored content.
Ethereum's decentralized systems, ongoing technology and large community support makes it the strongest blockchain supporting the smart-contracts and other token structures to be run as a layer on top of it. Ethereum's ongoing developments such as plasma, sharding and atomic swap also makes it a prominent infrastructure for rapid and decentralized transactions.
Colendi algorithms are designed to analyze the data in the nodes without changing or obtaining it. Colendi then hashes the results that is the Colendi Score to be shared with the merchant and the lender passed via a transaction on the blockchain. So any data that is open to Colendi application is not moved to any servers or revealed to any parties.
Colendi organizes the payback model for the user, so the users are notified and reminded for their debt. From the point of view of the lender, the lender and the user are legally binded to ensure payback.
Colendi is a global application, the headquarters are in Zug, Switzerland with development offices in Turkey and China.