From The Whitepaper

Bloom addresses these existing limitations in lending by moving credit scoring and
risk assessment to the blockchain.

Bloom is a standardized, programmable ecosystem to facilitate on-demand, secure,
and global access to credit services. Bloom presents a novel approach to credit risk
assessment allowing both traditional fiat lenders and digital asset lenders to issue
compliant loans on the blockchain while increasing competition to lower fees and
improve borrower experience at every layer of the credit issuance process.

The Bloom protocol presents solutions to the following problems:
1. Cross-Border Credit Scoring: Credit histories are not portable across countries,
forcing individuals to re-establish their credit track records from scratch
when they relocate.
2. Backward-Looking Creditworthiness Assessment: Credit systems rely on
historical debt repayment information and therefore cannot easily accommodate
users who are new to credit. This is especially prevalent among minorities, the
underbanked, and the youth.
3. Lenders Have Limited Ability to Expand and Offer Loans Globally:
Borrowers in markets with less developed financial and regulatory infrastructure
struggle to access credit as lenders have limited identity and scoring data to base
credit decisions.
4. High Risk of Identity Theft: Borrowers must expose all of their personal
information when applying for a loan - the same info an attacker can use to
open new lines of credit.
5. Uncompetitive Credit Scoring Ecosystem: Credit data is centralized. In
most markets, a single provider scores credit, resulting in an uncompetitive
ecosystem for evaluating credit risk. FICO was checked on 90% of all U.S.

– Ben Tossell


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