Many Americans may be unaware that their social media conversations and posts are providing banks and lenders with a treasure trove of information. In fact, a growing number of banks and lenders are currently building a data repository – collecting, storing and analyzing data – in the hopes that one day it could help them determine your potential credit risk and also tailor marketing directly to you.
Bottom line, if banks and lenders can prove that using social media data as a business tool is successful in assessing behavioral patterns and preventing future losses, then why wouldn’t they?
What your social media connections are doing financially. The idea here is that your friends have similar habits and characteristics as you. If one of them tweets about financial hardship, to banks that could mean you might also have trouble later on. UCSD professor James Fowler explores a similar concept in a study about divorce: Being friends with someone who gets divorced makes that person 147% more likely to get divorced themselves.
Upcoming life changes. Similar to financial changes, the idea here is that banks want to know when you’re approaching major life events, such as getting married or buying a safe car to transport your new child. This information allows banks to tailor certain products and services toward you.
Advice for ConsumersKnow your privacy settings. Always remember that anything you say in the public domain is never truly anonymous. To lessen the number of people who can view your posts, be sure to set all of your privacy settings appropriately.
Think before you post. Even though you may be excited about getting married or upset over losing a job, remember that it could come back to haunt you.
Keep in mind that everything can be traced back to you. One of the most overlooked aspects about posting on social media platforms is that the Internet has made it easier than ever before to trace things to the source. That means pictures, wall posts, status updates, and even “anonymous” blog comments.
http://news.yahoo.com/banks-lenders-know-social-media-093048662.html%3B_ylt%3DAkfbhp0H5zqUKWxSGkk3kM2s0NUE%3B_ylu%3DX3oDMTRhbjFwbDVvBG1pdANTZWN0aW9uTGlzdCBGUCBUZWNobm9sb2d5BHBrZwM0YTllMzhkMS1lNjAzLTMwZmItOTVjYS1mNDZjNWI1M2VhMGQEcG9zAzQEc2VjA01lZGlhU2VjdGlvbkxpc3QEdmVyA2JmZjM3ZmMwLWYwZTgtMTFlMC1hZmRmLWRmMjIwZmY4YjhlZg--%3B_ylg%3DX3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z%3B_ylv%3D3PT
