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Content type: Examples
In October 2018, the Singapore-based startup LenddoEFL was one of a group of microfinance startups aimed at the developing world that used non-traditional types of data such as behavioural traits and smartphone habits for credit scoring. Lenddo's algorithm uses numerous data points, including the number of words a person uses in email subject lines, the percentage of photos in a smartphone's library that were taken with a front-facing camera, and whether they regularly use financial apps on…
Content type: Examples
In December 2018, a report, "Access to Cash", written by the former financial ombusdsman Natalie Ceeney and independent from but paid for by the cash machine network operator Link, warned that the UK was at risk of sleepwalking into a cashless society and needed to protect an estimated 8 million people (17% of the British population) who would become disadvantaged as a result. Although cash used halved between 2007 and 2017, and debit cards passed cash in share of retail transactions in 2017,…
Content type: Examples
After an 18-month investigation involving interviews with 160 life insurance companies, in January 2019 New York Financial Services, the state's top financial regulator, announced it would allow life insurers to use data from social media and other non-traditional sources to set premium rates for its customers. Insurers will be required to demonstrate that their use of the information doesn't unfairly discriminate against specific customers. New York is the first state to issue specific…
Content type: Examples
The State is not always the only actor involved in the surveillance of benefits claimants. Often those practices are encouraged, facilitated or conducted by private companies. South Africa for instance mandated MasterCard to help distribute benefits through biometric debit cards.
https://www.finextra.com/newsarticle/23941/south-africa-enlists-mastercard-to-distribute-welfare-through-biometric-debit-cards
Publication: FinExtra
Content type: Examples
In September 2017, the UN Capital Development Fund, the UN Development Programme, and the non-profit San Francisco-based startup Kiva, which has worked for 13 years as a crowd-funded microlending platform announced a joint initiative to open up financial services to the 20% of the Sierra Leone population - 7 million citizens - who have no credit history or proof of formal identity and are therefore unable to start businesses, raise loans, or generally access mainstream financial services. The…
Content type: Examples
In January 2018 the Cyberspace Administration of China summoned representatives of Ant Financial Services Group, a subsidiary of Alibaba, to rebuke them for automatically enrolling its 520 million users in its credit-scoring system. The main complaint was that people using Ant's Alipay service were not properly notified that enrolling in the credit-scoring system would also grant Ant the right to share their personal financial data, including information about their income, savings, and…
Content type: Examples
In 2015, a small number of Silicon Valley start-ups began experimenting with assessing prospective borrowers in developing countries such as Kenya by inspecting their smartphones. Doing so, they claimed, enabled them to charge less in interest than more traditional microlenders, since many of their target customers lack traditional credit ratings. The amount of data on phones - GPS coordinates, texts, emails, app data, and more obscure details such as how often the user recharges the battery,…
Content type: Examples
Because banks often decline to give loans to those whose "thin" credit histories make it hard to assess the associated risk, in 2015 some financial technology startups began looking at the possibility of instead performing such assessments by using metadata collected by mobile phones or logged from internet activity. The algorithm under development by Brown University economist Daniel Björkegren for the credit-scoring company Enterpreneurial Finance Lab was built by examining the phone records…
Content type: Examples
By 2017, facial recognition was developing quickly in China and was beginning to become embedded in payment and other systems. The Chinese startup Face++, valued at roughly $1 billion, supplies facial recognition software to Alipay, a mobile payment app used by more than 120 million people; the dominant Chinese ride-hailing service, Didi; and several other popular apps. The Chinese search engine Baidu is working with the government of popular tourist destination Wuzhen to enable visitors to…
Content type: Examples
In 2015, the Swedish startup hub Epicenter began offering employees microchip implants that unlock doors, operate printers, and pay for food and drink. By 2017, about 150 of the 2,000 workers employed by the hub's more than 100 companies had accepted the implants. Epicenter is just one of a number of companies experimenting with this technology, which relies on Near Field Communication (NFC). The chips are biologically safe, but pose security and privacy issues by making it possible to track…
Content type: Examples
The payday lender Wonga announced in April 2017 that a data breach at the company affected an estimated 270,000 customers, 245,000 of them in the UK and the rest in Poland. The company sent those it thought were affected messages warning that it believed there may have been illegal and unauthorised access to some of the data in their accounts. Wonga was already controversial because of the high rates of interest in charged, and findings by the UK's financial regulator that it had made loans to…