Is Your Smartphone Your Best Friend?

In August 2017, researchers have revealed that a good credit history helps to find your true love. Discover Financial Services and Match Media Group, the developers of the Tinder online dating application, found out that high credit scores increase your chances to find your real love. 69 percent of respondents of both sexes mentioned financial responsibility as a “very” and “extremely” important trait in a potential partner. It attracts them more than a good sense of humor (67 percent), nice appearance (51 percent), ambitiousness (50 percent), courage (42 percent) and humbleness (39 percent).

That’s why it can be possible soon that a girlfriend or a boyfriend will examine your smartphones not to catch you cheating but to decide on how good your credit history is. At least, there is such tendency. However, not only sweethearts but also banks, online stores, and other services are interested in your credit score.

Today your personal smartphone can provide much more information about you than you can imagine. Without any exaggeration it contains all your life; all the contacts, money transactions, searches in searching engines, access to social networks as well as to different services and applications, e-wallets, QR codes, etc.

There is a fintech project that is able to use all this data to determine your credit score. A blockchain credit bureau MicroMoney knows the way to apply such kind of information to approve you a loan. And it has its positive sides because providing an access to mobile data is much easier than collecting paper-based documents to prove your creditworthiness. You just need to complete your loan application within the MicroMoney’s mobile Android application. It gets all the information as soon as you click a button “Send a request.”

MicroMoney builds up its risk assessment strategy exploring all the data available from a customer’s smartphone. The company designed its own scoring system based on neural networks, AI algorithms, and Big Data tools. So after you signed an agreement to process your personal data (it’s no way to do it without your agreement, of course) the system will gather everything; your SMS, contacts, applications you downloaded, social accounts you have and all the information from them, your searches, video you like to watch on Youtube and music you are playing more frequently, and even your daily traveled distance.

About 10,000 different parameters become available. They include places where you work, have lunch, have dates, go shopping, sleep. You might ask how these details can reflect the creditworthiness?

Turns out, each of these parameters has its own impact on your credit rate! For example, if you have a LinkedIn profile it makes your creditworthiness 30 percent better. You will get 50 percent of points to your reliability if you post to your social accounts often. Vice versa, if you like a hip-hop music a lot, you will get fewer points and the same for those who completed the fields in their loan application for too long. So, the results will be in numerical form between one and a thousand, allowing the system to approve the loan application automatically after a set amount is reached. By the way, the scoring system not only evaluates each parameter found but uses social network information to confirm a customer’s name, date of birth, employer, school or university degree and contact details. And if you have the same information everywhere it means you are the more reliable person. So there is no way to cheat the system because your smartphone will reveal the truth.

Is it really as frightful as it might seem? In case a borrower is a bona fide one, he or she will approve a credit independently just by staying himself or herself. Moreover, there is one huge advantage of the method. If you are unbanked and do not have a credit history but your smartphone proves that you are creditworthy, the system will allow you to get a social loan and this way to start your credit history from scratch, eventually, and, probably, to apply for financial services you had no access to before. Here your smartphone acts as your best friend which helps you to enter in the world financial system.