Wednesday, April 08, 2015

Measuring Social 'Trust' to Make Loans -

Friends with financial benefits

"Vouch Financial, which is emerging from its pilot testing phase this week, has an unusual spin on the data science approach. Big data lenders often analyze a person’s social network on LinkedIn or Facebook as one signal, among many, for hints about how reliable a payer a loan candidate is likely to be. But Vouch wants you to construct a social network of people who trust you financially — people who will, yes, vouch for you.

The Vouch formula looks to back to a bygone era of banking when community bankers routinely asked their customers for “social character” references before granting loans. “We’ve taken that principle and digitized it,” said Yee Lee, co-founder and chief executive of Vouch."
Measuring Social 'Trust' to Make Loans -
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