SAN FRANCISCO BAY AREA — When bankers for the future decide whether or not to make that loan, they may aim to see if potential prospects just use money letters when filling in types, or during the period of time they spend online reading stipulations — and never a great deal at credit rating.
These signals about behavior — acquired by advanced pc pc software that will scan several thousand bits of information about on the internet and offline lives — would be the focus of a small number of start-ups which can be producing brand brand new types of financing.
No solitary sign is definitive, but each is an item in a mosaic, a predictive image, published by gathering a myriad of information from diverse sources, including home buying practices, bill-paying documents and social networking connections. It amounts to a digital-age spin on the standard concept of banking: Know your consumer. [Read more…]