By David McLoone
In a new working paper entitled “Financial Intermediation and Technology,” the International Monetary Fund (IMF) suggested that “[t]he use of non-financial data will have large effects on the provision of financial services,” whereby individuals will have their internet history details scanned by banks to discern their credit score.
Instead of using traditional methods of assessing a customer’s credit risk, like assets, income, and marital status, banks are now looking to tap into the vast swathes of data collected by Big Tech companies like Facebook, Google, and YouTube for marketing purposes, to make risk assessments.
“Large technology firms collect vast amounts of non-financial data through their consumer facing platforms in the areas of e-commerce, social networking, and online search,” the paper reads. Continuing, the authors claim that the“sheer amount of data enables the use of ‘big data’ analysis tools such as artificial intelligence and machine learning,” which has shown its “usefulness in finance.”
“The rise of the internet permits the use of new types of nonfinancial customer data, such as browsing histories and online shopping behavior of individuals, or customer ratings for online vendors, […] such non-financial data are valuable for financial decision making.”
The authors contend that such data are “easy-to-collect information” specifically naming the “digital footprint (email provider, mobile carrier, operating system, etc.)” as one of these accessible information sources. According to their assessment, the new data sources perform “as well as traditional credit scores in assessing borrower risk.”
In a blog post penned by the authors of the working paper, the group claim that new research shows that “once powered by artificial intelligence and machine learning, these alternative data sources are often superior than traditional credit assessment methods,” advising that banks should begin basing their lending on machine collated data that categorizes spending habits.
It is an apparent economic no-brainer for banks, since “large amounts of data can be acquired at low cost via web-scraping” which increases “the contestability of financial services.”
According to the paper’s authors, the COVID-19 scenario is “turbo-charging” the need to revise the current banking system, echoing the words of globalist elites like George Soros and Klaus Schwab, who have called for a “Great Reset” that would “revamp all aspects of our societies and economies.”
“Every country, from the United States to China, must participate, and every industry, from oil and gas to tech, must be transformed,” Schwab said of the “Great Reset.”
Cardinal Raymond Burke, in a recent homily, warned of the danger of “certain forces” who are using the cover of COVID-19 to promote “fear,” attack freedom and the family, and so advance the “Great Reset.”
“Our nation is going through a crisis which threatens its very future as free and democratic,” Burke declared. “The worldwide spread of Marxist materialism, which has already brought destruction and death to the lives of so many, and which has threatened the foundations of our nation for decades, now seems to seize the governing power over our nation.”