TITLE:
Triangular Financial Service: Innovation in Credit Granting
AUTHORS:
Adlane Haffar, Éric Le Fur, Jean-Michel Sahut
KEYWORDS:
FinTech, Reverse Distribution, Credit Risk, Pension FinTech, Wealth Management, Triangular Financial Service, Credit Granting, Financial Innovation
JOURNAL NAME:
Theoretical Economics Letters,
Vol.14 No.3,
June
26,
2024
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.