This interview is part of our new Blockchain In Lending series, where we interview the world's leading thought leaders on the front lines of the intersections between blockchain and lending.
In this interview we speak with Tomas Medeckis, CEO and founder of Welltrado, to understand how his company is using blockchain to transform the lending business, and what the future of the industry holds.
1. What’s the story behind Welltrado? Why and how did you begin?
TM: There are currently more than 4000 P2P lending platforms in the world. P2P lending is one of the fastest-growing industries in the world, forecasted to reach $1 trillion market cap in the next 5 years. In many countries, this industry is not yet regulated, so P2P platforms do not have any obligations to report their financials to the regulators. It is still the “Wild West” in most of the countries. At the core of Welltrado’s vision is the aggregator tool, with the idea of gathering P2P platforms and building an online marketplace for them. I started Welltrado due to several reasons. First of all, I believe that a single dashboard to track and monitor investments across multiple P2P platforms can several times simplify the investment process for P2P investors. Secondly, data aggregation helps to detect anomalies and find out P2P investment platforms that have high probability of bankruptcy. Finally, data aggregation from different platforms increases the amount of cross border investment and helps the industry to grow faster.
2. Please describe your use case and how Welltrado uses blockchain:
TM: Currently, only a tiny handful of current P2P platforms operate with cryptocurrencies, such as bitbond.com and ethlend.io. Large crypto-assets are waiting and interested in investing, and these could provide greater mobility, more liquidity, and grant access to a much larger amount of capital. But the crypto market has yet to find a stable entrance to the P2P market, even though the rising use of blockchain technology and the philosophy of decentralized freedom of cryptocurrencies is a perfect match for the P2P market. By using blockchain technology in data collection and rating platforms, Welltrado provides sustainability to the P2P lending market by exposing and keeping track the “bad seeds” of the industry. Welltrado seeks to create a market based on trust, reputation and security. This means that the aggregator will detect platforms that go bankrupt, platforms that have a large number of late loans and defaults, and platforms not managed by competent people. It will also allow Welltrado, investors and the entire P2P investment market to keep track of platforms developed by people who have already had P2P platforms go bankrupt and are starting new ones. Finally, and most importantly, blockchain allows the storage of transaction data with no risk of data manipulation.
3. Could you share a specific customer/user that benefits from what you offer? What has your service done for them?
TM: Welltrado offers a solution that allows connecting P2P platforms you already have already invested and track all your investments in a single dashboard. The concept of the Welltrado management portfolio of loans is very simple. This tool essentially works just like an email inbox, where any account, be it Gmail, Hotmail or any other, can be added and monitored in a single dashboard, if you provide the login details to the application. Similarly, investors can input their login details to Welltrado. The system would then crawl the accounts on all provided platforms, gathering all the available information and presenting it in a single, simple, professional and easily managed dashboard. This eliminates the need for investors to log into dozens of different individual P2P platforms to manage and monitor their investments. And it also eliminates the need for filling out and updating annoying excel spreadsheets and diagrams.
4. What other blockchain use cases in lending are you excited about?
TM: P2P lending is still a relatively new concept in its current form. “Microlending” has always existed as friends have lent money to friends in times of need. The Internet has made it possible for an average person to lend or borrow money from another person without the help of a bank. The notable thing about the crypto markets is, however, that very few P2P lending platforms support the use of cryptocurrency, despite the large market volume. In the near future we will definetelly see more adoption of cryptocurrencies by traditional P2P investment platforms.
5. Where will Welltrado be in 5 years?
TM: There are several things how Welltrado will affect the future of P2P lending. First of all, we believe that Welltrado will become a serious player in the P2P industry and will aggregate at least 50% of market data from P2P investment platforms in Europe and Asia.
Secondly, a lot of processes will be automated. Investors will have a chance to access new Welltrado products as being similar to saving accounts.
And finally, Welltrado will be putting a lot of effort to run AI based scoring models to help investors make better P2P investment decisions.