Banks, Loans, and Social Media: The Unlikely Trinity

Social MediaFinancial bloggers are deeply fascinated with a small company based in New York named Lenddo, which offers loans to people in the Philippines and Colombia. What triggers their fascination is the fact that most of the bloggers live in countries where financial companies do not offer a product.

The secret to the company’s fame is simple and innovative: social media.

The New York-based company uses social networks to monitor and determine all of their users’ credit scores. This ushers a massive change in the field of reputation management, as well as in how social media cleanup will work in the future.

Why People Need Friends

Initially, it may seem ridiculous that banks and managing your reputation online share a link.

Traditional banks depend on a few indicators to measure a person’s creditworthiness. They took into consideration the following: how much a person makes, how much they owe, and the person’s history of attending to financial obligations.

Lenddo’s computation of credit scores depends on social media factors. They believe that when people socialize together, they may share similar spending habits and income. The theory is when they find people who have trustworthy friends, they might also find people who pay their loans on time.

To determine scores, the bank gets information regarding the client’s social media accounts, such as Facebook, Twitter, LinkedIn, and Google+.

Applying Reputation Management

From a stranger’s point of view, understanding how small banks work is unnecessary. Only a few Americans or Europeans travel to the Philippines to take out loans, and if they do, they’d choose a reputable bank over startups. But for people in the reputation management industry, the trend raises an alarm.

When clients seek assistance in managing their reputation, experts automatically study the actions that person performed online. SEO techniques aim to remove offensive items or bury them down the pits of search results.

Today, however, the online industries focus on digging into more details about a person’s online connections. It seems sketchy, but on some occasions, it is necessary.

How about you? How can you monitor your social media connections today?