“The data we have on customers via social networks says more about them than their FICO.”
— Alex Sion, president of Moven, a mobile-only bank. Sion says his New York company will use customers’ social media activity as a factor in lending decisions — something that is already being practiced by other lenders. The practice is yet another reminder that we should handle our social media posts with care, another example of how seemingly abstract online privacy matters affect real life. (Some are calling for regulation surrounding the practice, according to the Wall Street Journal.) Other obvious possible consequences: being rejected for a job, being found by someone you’re hiding from — without knowing why or how. On the other hand, the Journal reports that a microlender based in Germany uses social media — as well as browser cookies and smartphone use — to decide whether to lend to small businesses. Those businesses could cultivate their social media footprints with that in mind. And a consumer with far-from-perfect credit told the Journal she thinks her “decent Internet presence” helped her get a loan.
Screenshot: Activity on social networks such as Facebook can affect creditworthiness.