According to Kreditech, if a Facebook-friend has repaid a loan too late, this may affect negatively the assessment of a credit applicant who interacts with the defaulting party. The plausibility of a negative result increases with the frequency of interaction between the two Facebook-friends. Another criteria is time it takes to complete the application form. The longer the time required to complete the form, it is assumed that the applicant’s concentration in performing the task may be an indication of a higher creditworthiness.
About Kreditech: Kreditech uses BIG DATA and complex machine-learning algorithms to make better credit decisions. The technology identifies, scores individuals from anywhere on the world in seconds and decides over an instantly paid out credit based on up to 8000 data points (anything that can be found online). Kreditech uses this technology to provide banking products to customers in emerging markets where traditional banks lack ‘oldschool’ scoring data and thus do not serve private customers. On the other hand, modular products (identification, scoring products, payment options) are available for external B2B customers (e.g. microlenders, banks, retailers, debt collectors).
Kreditech is a company headquartered in Hamburg, Germany, with 50 employees out of 17 different nationalities, with offices in Prague, Moscow, Warsaw, Barcelona and London. The company was founded in 2012
Source: Password Germany