According to Bloomberg, phone usage data which, for phone carriers, will be worth up to $1 billion-a-year over the next decade could be used to determine the worthiness of an individual when deciding on their eligibility for a loan. Reportedly, companies like Equifax have determined that "the more economically active you are, the more people want to call you."
Some of the data financial institutions are using come directly from interactions with potential borrowers, while other information is collected in the background. FICO’s partner EFL sends psychological questionnaires of about 60 questions to potential borrowers’ mobile phones. With Lenddo’s technology, FICO can check if users’ phones were physically present at their stated home or work address, and if they are in touch with other good borrowers -- or with people with long histories of fooling lenders.
“We see this as a good opportunity to explore that type of data for risk assessment, as a viable means of extending financial inclusion,” David Shellenberger, a senior director at FICO, said in an interview.
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