Disruptive Finance and Fintech
15.2K views | +0 today
Follow
Disruptive Finance and Fintech
Logo2 - mini
Click here to go back to www.disruptivefinance.co.uk  
Your new post is loading...
Your new post is loading...
Scooped by Huy Nguyen Trieu
Scoop.it!

Credit scoring can even predict your love life!

Credit scoring can even predict your love life! | Disruptive Finance and Fintech | Scoop.it

When people are looking for a significant other, they often try to find someone whose values, education, earnings, hobbies and even height match their own. But new research suggests there's one promising measure for finding a committed partner that most daters overlook -- credit scores.

Huy Nguyen Trieu's insight:

This is an excellent article in so many ways! Any Fintech student (does that even exist…?) should spend hours thinking about the ramifications evoked by this topic.


I haven't read the actual study behind, so can't comment on the methodology of the Fed researchers. So I am less interested in the results (to be happily married, increase your credit score!) than in all the the structural trend happening in credit scoring:
- Credit scoring will have more and more of an impact on our lives, and not just for lending decisions. Like mentioned in this article, it could even impact dating (Tinder not with pictures, but credit score??)
- The biggest change to credit scoring is the availability of real time data - your credit score used to be very static, it can now be a dynamic number based on real time factors

- In a virtual world, there is a need to assess the trustworthiness of people we've never met (hence the reviews on Amazon, etc.). Credit scoring (or scoring in general) will be more prevalent

Garbage in, garbage out: we can try to predict anything based on anything, so for example your credit score based on the number of friends you have. It could work, it could well be rubbish too, and the easy access to a huge amount of data is likely to make pseudo-scientific scores more prevalent
- For lenders, there is clearly a benefit to have real time - and automated - information about their clients' creditworthiness - just look at Kabbage and you'll see how the future of credit scoring could be

- And there are of course a lot of ethical issues about what should or shouldn't be used, and we can see that undesirable things could happen quickly.


In all cases, credit scoring (and scoring in general) will be hugely transformed, it will have a huge impact on the way we are perceived (online, for loans, for mortgages, as a reliable/untrustworthy person), it will be real time. But there is also a risk that because it looks scientific, people will blindly trust a number that shouldn't really be trusted...


Follow me on Twitter here 

And my blog here

more...
No comment yet.
Scooped by Huy Nguyen Trieu
Scoop.it!

Ex Google Boss Launches Credit Scoring Startup

Ex Google Boss Launches Credit Scoring Startup | Disruptive Finance and Fintech | Scoop.it
Dan Cobley has co-founded ClearScore, which opened to the public today. His fintech company builder Brightbridge is putting £10 million into the business.
Huy Nguyen Trieu's insight:

Credit scoring is one of the most interesting areas of Fintech in my opinion (disclaimer : I am on the advisory board of Trusting Social).


In the same way that Google or Facebook monetize data by selling targeted ads, credit scoring is the equivalent in finance - but in a much more powerful way, because it involves financial data. So it's clearly not a surprise to see an ex Google launching a startup in that space. 


At the moment, ClearScore seems to be similar to Credit Karma - helps users to improve their credit score - but it wouldn't be surprising that the long-term plan is about monetization of financial data


For updates on Disruptive Finance and Fintech, follow me on Twitter here

more...
No comment yet.