Will social media soon decide on granting a loan?

It is well known that social media has a great influence. The fact that a platform like Facebook collects a lot of data about its users is also not a secret, but will our behavior on social media also be decisive in whether or not a loan is granted?

The above assumption is made on the basis of the leakage of the content of a new patent owned by the popular social networking site. That patent literally reads the following:

“If an individual applies for a credit, the potential lender will always conduct an investigation into the creditworthiness of that individual as well as the persons associated with him or her. Only when the average creditworthiness of these persons achieves the minimum credit score can the credit application continue. If this is not the case, the lender reserves the right to refuse the requested loan without further investigation. ”

In other words, whether or not to receive a loan could in the future just depend on your circle of friends or family, especially on Facebook ...

Serious consequences
Although it is not yet known at the time of writing whether or not the patent will be applied by Facebook, several financial institutions seem to be already asking for it. For many years now, banks and other lenders have been looking for extra options to have more guarantees with regard to granting a loan. The social media event could just become part of this.

Not a correct representation
However, there is also a downside to this coin, because what do the friends and family of a particular person say about their own financial success? Whether such an investigation will actually be decisive in practice for a credit application is therefore still very much the question. However, given that banks have already taken into account people in the borrower 's immediate environment, it does not seem unlikely that this will happen again in the future.

Published August 18, 2015 at 8:37 am by the editors .

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