26 July, 2017
When Jane Austen Meets Big Data Credit Rating
While only 25% of the Chinese population have a reliable credit history, 53.2% of them are generating digital footprints online. Chinese FinTech companies are racing to collect these social data points and use them to give credit scores to the previously unscorable 75%. Digital footprints, these fintechs argue, may provide alternative, if not more accurate, credit scores.
How do they use big data and machine learning to calculate credit scores? Here’s Jane Austen and a literature student to explain.
Imagine the machine as a college literature student. The machine studies the relationship between certain characteristics of a person and her creditworthiness, just like the student establishes a relationship between certain types of Austen’s female characters and the wealth of their future husbands.