By Joe Sigg, Arizona Farm Bureau Government Relations Director: It’s been awhile since I lent money, but was reminded of it from an article in the NY Times (07.27.15). It talked about “character” and how it can now be evaluated by data and algorithms. Guess it’s good I am out of banking because I would be replaced with analytics – just like everything else.
Can character be found in an algorithm?
We had all of these “C’s” in classes on credit culture [more c’s – how do you like the alliteration]: cash, credit analysis, collateral and of course character. There is a difference between those who want to pay you back and cannot and those who can but won’t. I found in banking there are simply folks who never quite seem to get around to re-paying the banker … character.
It seems some lenders who relied heavily on credit scores are now looking at
So lending companies have developed software to analyze “character.” They ask several questions which
We used to think of
We think emotionally and with presets, and I am all in favor of good data in decision making, but can we reserve some things for subjective