Monday, August 31, 2015

Bailey Davis-Module #1-Article #2

China P2P lender banks on social media usage


http://www.ft.com/intl/cms/s/0/673d9608-4d83-11e5-b558-8a9722977189.html#axzz3kM4kCHHI

This article discusses the Chinese company that is using people's social media activity as a way to decide whether to lend them money or not. This is a useful tool for the large consumer base in China that does not have the financial activity that is measured by the current standards. The company views a person's high social media use as an indication that applicant cares about their reputation and integrity. Online game purchases are also used in the algorithm that helps them decide.

I picked this article because I found it very interesting that the way that social media has evolved. It is not really something that I ever thought might affect  a person's credit rating, but this is becoming a reality in China.

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