Digital ‘Footprint’ Useful for Predicting Defaults
October 26, 2018
Specific details in consumers’ email addresses and insight into whether lower-case writing is consistently used can be just as useful for predicting defaults as credit scores, according to research published by the Federal Deposit Insurance Corp. The findings suggest that financial technology companies could use data from so-called digital footprints to challenge traditional lending business models. The findings were detailed in a recent paper titled “On the Rise of the FinTechs – Credit ...