registerme
Member of DD Central
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Post by registerme on Oct 3, 2016 8:13:09 GMT
There was an interesting article in The Economist last week (you might find it's behind a paywall) about the use of psychometric testing in lending, and in the future combining it with big data / social media. It struck me that P2P might be an area perfectly positioned to take advantage of these services, or at least look into whether they would add value. I wonder if any of the platforms saw the article, and if so what their thoughts are? So just tagging a handful of platform reps - ablrate, chris, MoneyThing, savingstream, westonkevRS. |
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Post by MoneyThing on Oct 3, 2016 8:44:21 GMT
There was an interesting article in The Economist last week (you might find it's behind a paywall) about the use of psychometric testing in lending, and in the future combining it with big data / social media. It struck me that P2P might be an area perfectly positioned to take advantage of these services, or at least look into whether they would add value. I wonder if any of the platforms saw the article, and if so what their thoughts are? So just tagging a handful of platform reps - ablrate , chris , MoneyThing , savingstream , westonkevRS . I had not seen it but just read it now. Interesting idea. I can see the potential, although perhaps more useful in the unsecured space...I think our borrowers might balk a little at the intrusion, especially when they are already handing over their assets as security. Having said that, a big part of our borrower assessment (before even properly assessing the security), is initially undertaken face to face to built a rapport and get a feel as to the borrower's character. I would say most of the fall out in the pipeline happens at this stage. If something doesn't quite feel right then we won't go any further. I suppose this could be considered as a kind of qualitative psychometry.
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Post by easteregg on Oct 3, 2016 9:17:11 GMT
There was an interesting article in The Economist last week (you might find it's behind a paywall) about the use of psychometric testing in lending, and in the future combining it with big data / social media. It struck me that P2P might be an area perfectly positioned to take advantage of these services, or at least look into whether they would add value. There was some discussion last year in LendIt about the use of "big data" as an alternative or augmenting traditional assessments. I believe that it was said that some studies have shown that this can actually be better than the traditional credit check, and certainly less expensive.
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Post by chris on Oct 3, 2016 11:12:06 GMT
There was an interesting article in The Economist last week (you might find it's behind a paywall) about the use of psychometric testing in lending, and in the future combining it with big data / social media. It struck me that P2P might be an area perfectly positioned to take advantage of these services, or at least look into whether they would add value. I wonder if any of the platforms saw the article, and if so what their thoughts are? So just tagging a handful of platform reps - ablrate , chris , MoneyThing , savingstream , westonkevRS . More for andrewholgate than me.
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Post by westonkevRS on Oct 3, 2016 12:16:40 GMT
There was an interesting article in The Economist last week (you might find it's behind a paywall) about the use of psychometric testing in lending, and in the future combining it with big data / social media. It struck me that P2P might be an area perfectly positioned to take advantage of these services, or at least look into whether they would add value. I wonder if any of the platforms saw the article, and if so what their thoughts are? I didn't see the article, but I'm well aware of the concept. There are a lot of start-ups trying to do this, as an example of one (out of many) that we've met would be creditkudos.com/borrowers/They are aiming to target the unbanked, or at least those with thin files (e.g. young people). So it is making headway into the sub-prime markets, with limited success to date. It isn't a great fit for RateSetter as we are predominantly prime lenders. The data is very sketchy on if social media is credit predictive for this risk segment, and to be blunt the credit reference agencies data is a lot more predictive. Although I do use social media to check on individuals professionalism.... Lucky I don't need a loan! Kevin.
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Post by westonkevRS on Oct 3, 2016 12:38:47 GMT
In hindsight this is one of the funniest yet sad videos on the hubris attached to fintech. The TrustBuddy CIO talks so confidently about how they will revolutionize credit scoring with technology and social media: www.lendit.com/europe/2014/videos/lendit-europe-2014-trustbuddy-demoNever trust a polished suit that talks with confidence about how they are so different. Around 5:20s he confirms they plan to ditch traditional scoring (which costs money) and use free social media.... Kevin. |
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Post by easteregg on Oct 3, 2016 12:54:17 GMT
In hindsight this is one of the funniest yet sad videos on the hubris attached to fintech. The TrustBuddy CIO talks so confidently about how they will revolutionize credit scoring with technology and social media: www.lendit.com/europe/2014/videos/lendit-europe-2014-trustbuddy-demoNever trust a polished suit that talks with confidence about how they are so different. Around 5:20s he confirms they plan to ditch traditional scoring (which costs money) and use free social media.... Kevin. Quakle tried the same approach and that also ended badly for lenders.
However on the topic of LendIt I believe that there are some exhibitors this year that provide credit decision making solutions by use of "big data".
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Post by many38 on Oct 3, 2016 15:54:15 GMT
IMO he wasn't a confident speaker. I would not have been impressed by his presentation either. Sleeves too short, scruffy open necked shirt and beard (too idle to shave)!
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Post by andrewholgate on Oct 4, 2016 16:07:18 GMT
There was an interesting article in The Economist last week (you might find it's behind a paywall) about the use of psychometric testing in lending, and in the future combining it with big data / social media. It struck me that P2P might be an area perfectly positioned to take advantage of these services, or at least look into whether they would add value. I wonder if any of the platforms saw the article, and if so what their thoughts are? So just tagging a handful of platform reps - ablrate , chris , MoneyThing , savingstream , westonkevRS . I read the Economist diligently (great article about the future of transport a few weeks back that really makes you see why google et al are plough billions into driverless cars - I mention this as proof I read it, I could talk about their excellent article on why nationalism is bad and Brexit was the wrong decision as globalisation has lifted more out of poverty than protectionists policies ever did). These tests are possibly a good idea for personal / consumer lending, especially in mid to lower credit scores and socio economic groups. In business lending there are so many variables it is more data to analyse which may or may not help. Big data / social media is interesting. We do look at that sort of stuff (I rejected an application for a job we have after looking at Facebook...do they not realise we can see those things??). My concern is that big data can tell you that 85% of people who watched a cat sneezing, who were eating doritos at the time and also liked the video of the hamster on a swing, went on to develop testicular cancer. The correlation of those facts is meaningless. You have to be able to see through the data to get proper correlations before you can make a decision. Remember the Minority Reports paradigm...
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Post by gaspilot on Oct 4, 2016 16:23:32 GMT
There was an interesting article in The Economist last week (you might find it's behind a paywall) about the use of psychometric testing in lending, and in the future combining it with big data / social media. It struck me that P2P might be an area perfectly positioned to take advantage of these services, or at least look into whether they would add value. I wonder if any of the platforms saw the article, and if so what their thoughts are? So just tagging a handful of platform reps - ablrate , chris , MoneyThing , savingstream , westonkevRS . I read the Economist diligently (great article about the future of transport a few weeks back that really makes you see why google et al are plough billions into driverless cars - I mention this as proof I read it, I could talk about their excellent article on why nationalism is bad and Brexit was the wrong decision as globalisation has lifted more out of poverty than protectionists policies ever did). These tests are possibly a good idea for personal / consumer lending, especially in mid to lower credit scores and socio economic groups. In business lending there are so many variables it is more data to analyse which may or may not help. Big data / social media is interesting. We do look at that sort of stuff (I rejected an application for a job we have after looking at Facebook...do they not realise we can see those things??). My concern is that big data can tell you that 85% of people who watched a cat sneezing, who were eating doritos at the time and also liked the video of the hamster on a swing, went on to develop testicular cancer. The correlation of those facts is meaningless. You have to be able to see through the data to get proper correlations before you can make a decision. Remember the Minority Reports paradigm... People sometimes forget the adage that correlation doesn't equal causation.
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Post by andrewholgate on Oct 4, 2016 16:53:04 GMT
Indeed.
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Post by ablrateandy on Oct 4, 2016 23:15:04 GMT
Big data can be great. One example that I saw recently was a new credit system that mines the internet for cross-relationships etc and marks individual sw I thin the firm.
Like Ed said though, you can't beat gut feeling.
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
Posts: 787
Likes: 424
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Post by skippyonspeed on Oct 9, 2016 16:57:00 GMT
I'm just glad I detest those stale crisp snacks! Is that why you're concerned? 
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Post by andrewholgate on Oct 10, 2016 8:09:20 GMT
Technically, they aren't crisps. They are a corn based snack that happens (on occasion) to be crunchy.
My concern is more about Hamster Flu. If Bird Flu was going to wipe out the world, imagine what Hamster Flu will do to us.
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