A Consortium Lending System to Syndicate Retail Loan Offerings using Open Banking and Smart Contracts

As the retail banking sector consisting of different varieties of credit facilities offered to their customers, the normal practice would be a customer applying for a loan from a single financial institution. This paper presents a theoretical conceptual framework, which involves multiple financial institutions to collaboratively offer a single loan to a retail customer through a platform that enables it by integrating Open Banking and Smart Contract technologies. Additionally, the paper explores the possibility of combining different repayment models to offer more flexibility and expand the scope of loan schemes, while discussing the potential benefits, challenges, and future research directions that could shape the development and adoption of such a system.