A company called Wonga.com in Great Britain uses a software algorithm to accept or reject loan applications. The program scours the internet for any information on loan applicants in order to make a decision. Like most AI, Wonga's proprietary software benefits from being cold, clean and unbiased.
This is an interesting story on two counts...first, as an example of the increasing power of software to make intelligence decisions...and second, an illustration to the vast amounts of personal information we probably all have online.
The company is one of the first to actually use the countless streams of data available to financial institutions in real time. Potential loan applicants basically visit the Wonga site and then choose the amount they wish to borrow and for how long. The maximum borrowing period is 31 days, making these loans analogous somewhat to a credit card loan.
Wonga's loan ...read more