Lenddo Creates Credit Scores Using Social Media

by Shelton on February 16th, 2015

filed under Credit Scores

How do you lend to people in a developing country that lacks credit bureaus, and to people who lack any credit history?

Lenddo does it by following applicants on social media, with their permission.

It started its service lending its own capital while it improved the technology to more accurately measure credit worthiness, but now banks and investors are looking to use Lenddo in the cloud to invest in loans. Lending Club demonstrated that you can make money lending without the traditional infrastructure of a bank or just the scores maintained by credit bureaus. (The FT reported today that SocGen and Goldman Sachs are looking into peer to peer lending.)

Jeff Stewart, Lenddo’s CEO, said that by lending its own funds directly, Lenddo had full control over the loans and full access to the data.

“”We have been hardening the product and readying it for outside institutions. Now we are at the point where the data showed the algorithms worked and we could offer them to financial institutions.”

Lenddo is very easy for financial institutions to use, he added. It works through a cloud-based API. A financial institution can add a bit of code to their lending application workflow which then allows customers to opt in and share their social media. Lenddo also offers a software development kit (SDK) which banks can add to a mobile app for users to share social media.

The company got its start when Stewart and Co-Founder Richard Eldridge were running technology companies in the Philippines and several other emerging markets. Their skilled young staff often asked for loans, which puzzled them because they seemed like excellent risks. They looked into it and came to realize that around the world more than a billion people are moving into the middle class but lack access to credit and were often underbanked or unbanked.

With repayment rates in microfinance as high as 98 percent in multiple regions, the opportunity seemed obvious.

Study finds gender gap when it comes to finances

by Shelton on February 16th, 2015

filed under Finances

(KFVS) –

A new study from Kansas State University shows that women might be falling behind when it comes to finances.

According to a press release on the study, Financial Knowledge and the Gender Gap, Americans as a whole show low levels of financial knowledge and capability, but women are less financially capable. Especially women who are under age 34 and over age 55.

The gap seems to only get bigger as women age.

The press release calls the results especially alarming considering one out of four households in the United States is headed by women alone and many of them have children.

Cliff Robb, a Kansas State University Financial Expert, says it there are things we can do to change this.

Maybe we need to do a better job of engaging females at younger ages. Maybe women need to consider being more proactive in getting involved in financial decision making. If youre in a household thats decided to split tasks in terms of financial planning, its always good to have discussions about it, Robb says.

Its possible, according to researchers, that the gender gap is due to historic and cultural views of the household.

Click here to read the full report on the study.

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