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