"The way you use the phone is a proxy for the way you live."

Phone usage data to determine loan eligibility

#Money

Sun, Nov 27th, 2016 11:00 by capnasty NEWS

According to Bloomberg, phone usage data — which, for phone carriers, will be worth up to $1 billion-a-year over the next decade — could be used to determine the worthiness of an individual when deciding on their eligibility for a loan. Reportedly, companies like Equifax have determined that "the more economically active you are, the more people want to call you."

Some of the data financial institutions are using come directly from interactions with potential borrowers, while other information is collected in the background. FICO’s partner EFL sends psychological questionnaires of about 60 questions to potential borrowers’ mobile phones. With Lenddo’s technology, FICO can check if users’ phones were physically present at their stated home or work address, and if they are in touch with other good borrowers -- or with people with long histories of fooling lenders.

“We see this as a good opportunity to explore that type of data for risk assessment, as a viable means of extending financial inclusion,” David Shellenberger, a senior director at FICO, said in an interview.

  1012

 

You may also be interested in:

Canada Switches to Plastic Banknotes
Why Robbing Banks is a Financially Bad Idea
"Artists railing against Spotify is about as helpful as campaigning against the Sony Walkman in the early 80s"
Tar Sands: "If Canada proceeds, and we do nothing, it will be game over for the climate."
“Amazon Paid No Federal Taxes In 2017.”