Enhancing trust in peer-to-peer lending in Ghana

Abstract

In the past years, financial institutions, mainly in Ghana, have witnessed a lot of innovations regarding how they operate and serve their customers. The recent introduction of financial technologies (fintech) includes blockchain, cryptocurrency, NFTS, web3, smart contracts, mobile banking, crowdfunding, and peer-to-peer lending. Traditional banks have seen parts of their core business from payment services and credit to advisory services encroached upon by digital competitors. In the case of credit and loans systems, we have realized how customers no longer have to file long loan documents in order to secure loans. There has been the introduction of the peer-to-peer ecosystem where one can just acquire a loan by the click of a button. The problem with these systems is that there have been reports with regards to nonrepayment of loans. Projecting fintech (automated forms of traditional financial services) as the future, how can we possibly solve this issue of trust in the peer-to-peer ecosystem? The main objective of this thesis is to explore the probable ways of building private, safe, and sensitive peer-to-peer applications. Specifically, this paper focuses on how to enhance trust in peer-to-peer lending systems by exploring credit score ratings, biometrics and smart contract technology. This thesis recommends a framework on how these systems can be built to enhance trust during transactions.