Moneylenders test tech to read your social media feed to figure out if you get a loan

Firms exploring use of digital footprint to forecast default risk

The Law Ministry selected six firms last month to pilot new business models for moneylending while also temporarily lifting a 2012 moratorium on new licences needed to operate in the sector.
The Law Ministry selected six firms last month to pilot new business models for moneylending while also temporarily lifting a 2012 moratorium on new licences needed to operate in the sector.PHOTO: REUTERS

An algorithm that reads your social media feed, gets a fix on your digital personality and analyses your online interactions with friends and family may now be able to determine if you get a loan.

The idea of using personal data to forecast a person's likelihood of default is being explored by some licensed moneylending firms here in what is an industry first.

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A version of this article appeared in the print edition of The Straits Times on January 02, 2019, with the headline 'Moneylenders test all-seeing eye of big data'. Subscribe