Question

How big data supports Fintech credit scoring? Will that raise any ethical problems? Any law enforcement on that?

Answer 1

The credit scoring models used by Fintech Companies use advanced technology which allows them to collect and use large amounts of data and analyse the same for effective decision making.

Traditional Financial Credit scoring system could not find the pattern between various clients

But Fintech models have helped solve this problem.

Automated credit assessment will allow FinTech companies  to perform Credit analysis of borrowers with more efficiecy than traditional lending by monitoring the repayment behavior of the clients ,

This way, FinTech credit companies can assess various  eligibility of borrowers for receiving loans rather than rationing those borrowers who lack sufficient standard data such as financial reports used in traditional credit risk assessment

For now there has been no ethical problem because this process has been more transparent than traditional buying behavior

And there is no Law enforcement on it.