Here is an interesting TED talk which describes an approach for providing loans to customers who don’t have any credit history. This method involves analysing data from their phones to build a credit score.
Do think this approach can be more widely used? Perhaps the privacy implications would make it unattractive for potential borrows? Or is the trade off a good way to build up a credit history which can be used as a stepping stone to commercial finance?
Find out more by watching the video below and share your thoughts.
Source: http://www.ted.com/talks/shivani_siroya_a_smart_loan_for_people_with_no_credit_history_yet#t-479267