IMF thinks your browsing history should be used to determine your credit score
Internet shutdowns
Data is the new gold has become a common phrase these days. Turns out, a few researchers at the International Monetary Fund agree.
Mega companies are now under radar for how they use user data. In a blog post for the IMF, four researchers put forward findings from a paper in the works which looks at the relationship between finance and tech, and how it is expected to grow.
Prepare yourself! The researchers claimed that one’s browsing history, purchase history, and search patterns should be used to decide the credit score of every user. They believe this would determine a way more accurate credit rating than it does right now.
They also ascertained that such a model would allow greater lending for borrowers which would have been denied for other reasons by traditional banks.
Fortunately, they don’t have sinister ideas in their minds, but simply believe that banking system as it exists right now faces a serious threat from tech companies like Facebook, Google, and Apple. These companies are facing more scrutiny across the globe for they use our data.
Researchers found that such companies have a lot more access to soft-information, and that message based platforms could replace physical banks.
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The logic behind this is that lenders really too heavily on hard data, which may paint a picture grimmer than reality for the borrower. But if the lender had access to browsing history, interests, and google searches - they would be able to ascertain the true value of lending money to borrowers!
The researchers did mention the privacy and policy shortcomings and worries that are part of such kind of policies. The study is still in its pilot phases, and perhaps soon, the researchers could pinpoint to a mechanism which would make this possible. Until then, fear not, and browse away!