Isolated Lending Finds a Friend in Social Networking For decades the lending industry has tirelessly pursued the perfect equation to determine a borrower's likelihood to repay a loan. Armed with Big Data and the algorithms to parse it, today's lenders claim to have found the key - but they are mistaken. As advanced and refined as their tools may be, the model these lenders employ is stricken with a fundamental flaw: the evaluation of borrowers in isolation. For a true representation of a borrower's creditworthiness, we must also consider input from the community that surrounds them, the social fabric that in many ways defines each of us. These signals provide a far more accurate picture of a...
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