Payday Loan Companies Using Facebook and Twitter

By | Jan 16, 2013

There’s an interesting piece at American Banker discussing the merits of payday loan companies using consumer social media footprints for credit risk analysis.

Does your small dollar loan company incorporate your applicant’s Facebook, Twitter, Google+… tracks? Can you offer a reward for “friending” your company? For a favorable Yelp review?

American Banker quotes Ken Rees, CEO at Think Finance, “That while analysis of customers’ social networking activity is more useful for fraud detection, there are uses for credit risk. One simple check is finding out if a borrower actually has a social media footprint. Facebook and Twitter have become so ubiquitous that not having accounts can set off a red flag. ‘It’s better to have an online ID. Not having one is like walking into a brick and mortar store without a driver’s license,’ he says.”
American Banker full article

3 Comments so far
  1. MartinF January 16, 2013 8:03 pm

    Can we legally offer a discount for “friending” us on Facebook? And yes, what about a good Yelp review to fight-off my competitors who defame my company?

  2. Payday Loan Industry January 16, 2013 8:05 pm

    You would have “terms of service” issues with facebook. Regarding Yelp, I would not recommend you provide your customers with a computer to do this. Yelp will recognize the IP number…

  3. Ben Martineau January 17, 2013 12:49 pm

    I find facebook/twitter very useful when trying to find some of my disappeared people. Many people have their profiles public and will post about their “new house” or even post pictures that can help you determine their location. Skip tracers dream.

    I take issue with rewarding people or offering incentives to like or give favorable reviews. Instead just give good enough service that people voluntarily give the good reviews. Good service + letting people know about your online presence should be all you need.

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