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

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

Firms exploring use of digital footprint to forecast default risk

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.

Please or to continue reading the full article. Learn more about ST PREMIUM.

Enjoy unlimited access to ST's best work

  • Exclusive stories and features on multiple devices
  • In-depth analyses and opinion pieces
  • ePaper and award-winning multimedia content
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'. Print Edition | Subscribe