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This is an interesting take on credit. "Social Credit", which uses your Facebook (or social media) information to determine your likelihood to pay back loans, changes the game. Would you have a better or worse "credit score" with Social Credit? Makes me reconsider my friends list...
Posted from newsweek.com
Money
Happiness
Future
Future Soldier Leader
Posted >1 y ago
Responses: 3
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Interesting.
It seems like the suggesting of "shifting models." The current "model" is the Credit Score (Numeric Representation of likelihood of defaulting on debt) whereas the article describes the "opposite" in that we are looking at "positive indicators" as opposed to negative ones (think Insurance or Risk based).
Social Media has lots of clues, and the comparison to weight was a great one, but they don't expand it enough to make it clear.
As an example:
If you want someone who is overweight to lose said weight, put him in a platoon of "fit" people. The social pressures will result in weight loss. It's a "psychological effect" (peer pressure resulting in eating less, positive health habits, etc). If we apply that same concept to spending, debt, etc, and use Social Media as our "tracking" mechanism, this could be very valid.
When you have a "circle of good spenders" surrounding you, chances are YOU are a good spender. If you have a "circle of bad spenders" surrounding you, chances are YOU are a bad spending. The way you build "good credit" is by associating with those who spend well, and pay off their debt well, because you build positive habits. Organizations will be able to track risk by tracking "populations."
CC SMSgt Minister Gerald A. Thomas
It seems like the suggesting of "shifting models." The current "model" is the Credit Score (Numeric Representation of likelihood of defaulting on debt) whereas the article describes the "opposite" in that we are looking at "positive indicators" as opposed to negative ones (think Insurance or Risk based).
Social Media has lots of clues, and the comparison to weight was a great one, but they don't expand it enough to make it clear.
As an example:
If you want someone who is overweight to lose said weight, put him in a platoon of "fit" people. The social pressures will result in weight loss. It's a "psychological effect" (peer pressure resulting in eating less, positive health habits, etc). If we apply that same concept to spending, debt, etc, and use Social Media as our "tracking" mechanism, this could be very valid.
When you have a "circle of good spenders" surrounding you, chances are YOU are a good spender. If you have a "circle of bad spenders" surrounding you, chances are YOU are a bad spending. The way you build "good credit" is by associating with those who spend well, and pay off their debt well, because you build positive habits. Organizations will be able to track risk by tracking "populations."
CC SMSgt Minister Gerald A. Thomas
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Always interesting to see where the trend flows. I would say your spending history on line may eventually become something they view. I firmly think however your overall financial look is hard to move away from as it defines your "fiscal maturity". You could be a raging idiot in your social media and a lender would be hard pressed to discount your good/bad fiscal past. I do get an eerie feeling when someone posts about divorce, death etc and how that would play into their opinion. Good and thought provoking post however.
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This would put Facebook in the same Big Brother status as Google. It would probably become really popular, but then other organizations will come up with the intent on prioritizing privacy so everyone can't simply see all your activity.
Google < Duckduckgo, Startpage
Google < Duckduckgo, Startpage
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