IMF researchers hinted at the possibility of using a user’s browsing history, including search and purchasing data, for more accurately determining the person or business’ credit rating.
In its recent blog post, four researchers from the International Monetary Fund (IMF), the global lender to nations during financial crunches, revealed their findings regarding the undeniable correlation between finance and tech (fintech) and its potential future.
IMF researchers have highlighted the reason behind fintech’s success and public acceptance over the past ten years against physical banks.
In the working paper, IMF researchers hinted at the possibility of using a user’s web history, including search, browsing, and purchasing data, for more accurately determining the person or business’ credit rating.
See: Malware infected browser extensions stealing Chrome, Edge user data
Researchers Arnoud Boot, Peter Hoffmann, Luc Laeven, and Lev Ratnovski believe that this method can lead to greater lending to those borrowers who might be denied loans by conventional financial institutions.
The paper’s bottom line is that tech firms like Apple, Google, and Facebook threaten the traditional institutional banking system.
Researchers claim that physical banking is receding because tech firms like Facebook have greater access to soft-information.
Conversely, messaging platforms are likely to replace physical locations, while banks rely on customer meetings.
“Communication innovation is driven by the variety of digital platforms in social media, mobile communication, and online shopping that have penetrated much of consumers’ everyday lives, thus increasing their ..
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