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. PHOTO: REUTERS
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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 tech to read your social media feed to figure out if you get a loan. Subscribe