Automating and Incentivizing Loan Origination via BankSocial Platform

Proposal Discussion
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The Idea: By automating key steps like underwriting and loan origination we can reduce manual work and potentially cut intermediary costs. This would also speed up KYC/AML processes, making the entire loan process faster, more transparent, and cost-effective for Credit Unions (CUs) and their members.

What’s In It for CUs?

Lower Costs: CUs could save money by reducing their loan origination fees when they process loans through the SLP.
New Revenue Streams: By offering loans through the SLP, CUs could share a portion of the interest with the DAO, benefitting both sides.

How We Can Engage CU Members:

Staking $BSL for Better Terms: CU members could get better loan terms (like lower interest rates or quicker approvals) by staking $BSL tokens.
Additional Perks: CUs could offer rewards like cashback or improved loan conditions for members who participate by staking $BSL tokens.

Why It Matters to the DAO: In 2023, Credit Unions issued over $100 billion in loans to businesses. Imagine if we could incentivize these CUs to offer a portion of those loans through the Social Lending Pool (SLP). Not only would this bring liquidity into the DAO, but it would also strengthen the connection between the DAO and CUs, aligning everyone’s goals.

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Question from @Dejacoa : In this proposal are the CUs still funding the loan themselves and simply using the DAO for origination? Or are we funding the loan as well?

Response: The proposal allows for flexibility based on the DAO’s maturity. Right now, CUs would fund the loans themselves, using BankSocial’s platform for origination. The DAO could optionally step in to handle parts of the origination process and potentially share in fees—something we’d need to figure out together. In the future, as the SLP grows, the DAO could take on funding loans directly, which would allow it to earn a larger share of the revenue. BankSocial would continue to generate revenue from the platform and services it provides to CUs. This idea still needs to be evaluated for feasibility and ROI , and need to align with the BankSocial team to prioritize it.