Karma is a collaborative effort to protect operators in the financial ecosystem from bad actors. Who are bad actors? Bad actors are individuals who are always trying to explore the financial space and its loopholes to discover ways to dupe operators in the space or have even duped them in the past or defaulted on loans without intent to pay back.

Karma provides a solution to this challenge through community and alliance. Karma is a privately sourced blacklist that collects, tracks, and shares the profiles of known bad actors. Karma receives its contributions from its community members and alliances. With this collaborative strategy, each member of the community provides a measurement of protection to the other. 

As a lender on the Lendsqr admin platform, you have access to this wealth of data and you are also offered this community protection.

Karma as a Decision Model Module

During credit scoring that happens when a user applies for a loan, a borrower is checked against Karma. The karma module is usually the first module that the borrower is checked against. If a borrower is found in Karma, the borrower immediately becomes ineligible for the loan. The system does this check.

Karma as a Blacklisting and Search Engine

An admin on the Lendsqr admin console with the right permission can blacklist a user if they suspect any funny or hankypanky behavior or if a borrower has maliciously refused to repay his loan. The funny or hanky-panky behavior that will lead to an admin blacklisting a user needs to be gross.

An admin can also manually add a borrower’s record to Karma on the Karma page. The difference here can be a situation where the borrower to be blacklisted is not yet onboarded on the app or a lender is uploading their existing blacklist record. 

In addition to adding records to Karma, you can manually search karma for a record.