Saturday

Using Facebook To Check Credit-Worthiness

This program is not operational in the US yet, but it's one more indicator of how influential "big data" and social media are becoming in each of our lives. Many potential employers will openly or secretly search a potential employee's online activity, and now that same activity can be reviewed in some countries to check a person's credit risk.
Germany-based lender Kreditech analyzes over 8,000 data points when a person applies for a loan, leveraging the power of big data. The company even accounts for the length of time you spend reading instructions and the manner in which you fill out the application when making its decision. According to Kreditech, over 85% of applicants are rejected – your online credentials need to be top notch to qualify for a loan.
Lenddo, another online lender, focuses on your social media history to make a decision. Part of the application process requires linking your Facebook account. If you’re friends with someone who has defaulted on a Lenddo loan, your own ability to score a loan takes a hit. “It turns out humans are really good at knowing who is trustworthy and reliable in their community,” said Lenddo CEO Jeff Stewart to CNN Money. “What’s new is that we’re now able to measure through massive computing power.”

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