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Triangular Financial Service: Innovation in Credit Granting
Faculty of Mathematics, University of Science and Technology Houari Boumediene, Algiers, Algeria
INSEEC Grande Ecole, Bordeaux, France
IDRAC Business School, Lyon, France
MSTD Laboratory, Algiers, Algeria
- 1 Faculty of Mathematics, University of Science and Technology Houari Boumediene, Algiers, Algeria
- 2 INSEEC Grande Ecole, Bordeaux, France
- 3 IDRAC Business School, Lyon, France
- 4 MSTD Laboratory, Algiers, Algeria
Theoretical Economics Letters·Volume 14 (2024)·Pages 1066–1075·Published 6 May 2024·DOI10.4236/tel.2024.143055
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Abstract
This paper describes an innovative financial service for granting credit involving three actors simultaneously: an employee, a company, and a financial institution. In this innovative method of financing, the employee is the borrower, and the company bears the risk of default in its capacity as the entity responsible for reimbursing the timelines. That requires that both parties are contractually bound. The FinTech is the financing organization. From an example of salary advances, we demonstrate that this financial service is advantageous for the employee, profitable for the financial institution for any positive interest rate, and the employer in terms of loyalty and motivating high-potential executives.
KeywordsFinTechReverse DistributionCredit RiskPension FinTechWealth ManagementTriangular Financial ServiceCredit GrantingFinancial Innovation
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