Canadian Bank Will Use Blockchain To Make Credit Scores Transparent


According to the US Patent and Trademark Office, the Royal Bank of Canada (RBC) filed a patent for credit score platform using blockchain technology.

The largest Canadian Bank filed the application last autumn.

Full transparency

According to the patent’s description, the blockchain-based platform will be where:

“credit records are recorded using blocks linked by identification data. The credit record stores historical and predictive information about borrowers used to compute credit ratings.”

The traditional way of credit score calculation isn’t transparent, according to the patent. Clients do not posses the “tools to take control of their credit score.”. And aren’t always aware of how different data affects it.

With the distributed ledger technology described, clients would get notifications when “third party credit checks happen or when the credit score changes.”

Whenever anything, like late repayment, affects the client’s credit score, a credit alert would be sent.

The RBC seems to be very proactive regarding the blockchain technology. Last year it announced a use of blockchain-based hyperledger to shadow US-CA interbank transactions. Also – the bank’s CEO, David McKay, praised blockchain technology last year as something with a potential to “transform everything from our capital markets, and our trading businesses, our security settlement businesses, right into our retail franchise.”


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