Facebook can now be your only source of credit information

Facebook can now be your only source of credit information

January 10, 2014 by Erki Kert

We start the New Year with another breakthrough. After months of additional data collection and modeling, our social media based credit scoring models have shown predictive capabilities never achieved before.

What does this mean to our existing and future clients? Existing clients can now predict their customers’ payment behaviour even more precisely, hence taking credit losses another significant step lower while at the same time accepting higher amount of loan applications. When a lenders’ current in-house underwriting algorithm is complemented with our social media models, a remarkable improvement in the decision making process can be expected.

The same benefits extend to all future clients and even more importantly, we have proven that Facebook can now be your only source of credit information. No need for lengthy loan applications or expensive credit data any more – Facebook and other digital data can be your only source of credit information from here on.

The model below uses Facebook as its sole source of information and divides borrowers into 10 groups based on their expected probability of default (GINI coefficient = -0.322, K-S% = -25.9). Default is defined as any payment being 90 days overdue. Each time a potential borrower applies for a loan from one of our clients, we automatically calculate and send a score from 1 to 10 to the lender.

NewFinModel

Contact us at info@bigdatascoring.com or +372 5373 6395 to find out how we can help you improve your underwriting process.