On 31 December 2013, 757 million users logged on to Facebook. The tremendous number shows the huge size of the Facebook network. 1,23 Billion active monthly users produce more than 30 billion pieces of information every month. The stunning size of information can be used for different analyses. One area of application may be the checking of the creditworthiness of private persons.
In today’s world, the checking of the creditworthiness of private persons becomes more important, due to the increasing distance trade. The different trade partners usually don’t know each other. That leads to an information asymmetry in the sense of reliability. Additionally, the number of private insolvent person increased since 2000 dramatically. In 2000 there were around 14024 private insolvent persons in Germany and in 2013 already 121.784 (see figure 1). Even if the private insolvencies decreased after 2010, it is still on a high level. To resolve this information asymmetry and reduce the risk of the inability of customers to pay, companies can use the provided services of credit reporting agencies like Schufa, Creditreform or Arvato Infoscore. Those credit reporting agencies use different public and non-public sources to evaluate a private person's creditworthiness.
The highly discussed social network data could be a future database for the evaluation of the creditworthiness of private persons. Not only the high numbers of users , but also the available data on social networks, makes it an interesting source of information about a private person's financial situation.
Inhaltsverzeichnis (Table of Contents)
- Introduction and Relevance within the economy
- Theory about Credit Reporting Agencies and Scoring
- Credit Reporting Agencies
- History of Credit Reporting Agencies
- Functioning of Credit Reporting Agencies
- Credit Scoring
- Data Sources of Credit Reporting Agencies
- Data Protection Act and Criticism towards Credit Reporting Agencies
- Social Network Data
- Social Network Sites: A Definition
- History and Development of Social Network Sites
- Available Data on Social Network Sites
- Likes
- Pictures
- Places
- Groups
- Friends
- Family status
- Data Warehousing and Data Mining
- Data Warehousing
- Data Mining
- Big Data
- Characteristics of Big Data
- Applications of Big Data
- How to access Data
- Payolution GmbH
- Kreditech Holding SSL GmbH
- Problems
- Facebook profiles of private insolvent persons as an attempt
- Attempt description
- Result of the Attempt
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This work aims to investigate the potential of using social network data for assessing the creditworthiness of private persons. It explores the growing importance of creditworthiness checks in today's economy, particularly in the context of distance trade and increasing private insolvency rates. The work delves into the existing mechanisms of credit reporting agencies and credit scoring, highlighting their role in addressing information asymmetry and risk mitigation. It then examines the potential of social network data as a new source of information for creditworthiness evaluations, considering the vast amount of data available on social network sites.
- Creditworthiness assessment in the context of distance trade and increasing private insolvency rates.
- Role of credit reporting agencies and credit scoring in addressing information asymmetry and risk mitigation.
- Potential of social network data as a new source of information for creditworthiness evaluations.
- Data protection concerns and ethical implications of using social network data for creditworthiness assessment.
- Technical challenges and opportunities associated with data warehousing, data mining, and the utilization of Big Data in creditworthiness assessment.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction and Relevance within the economy: This chapter introduces the growing importance of creditworthiness checks in today's economy, highlighting the increasing reliance on distance trade and the rise in private insolvency rates. It presents the need for reliable information to mitigate risk and address information asymmetry.
- Theory about Credit Reporting Agencies and Scoring: This chapter provides an overview of credit reporting agencies and credit scoring mechanisms. It discusses their history, functioning, data sources, and legal considerations, including data protection regulations and criticisms.
- Social Network Data: This chapter defines social network sites and explores their history and development. It examines the types of data available on these platforms, including user profiles, interactions, and content, highlighting their potential for assessing creditworthiness.
- Data Warehousing and Data Mining: This chapter delves into the concepts of data warehousing and data mining, explaining how these techniques can be used to extract valuable insights from social network data. It introduces the concept of Big Data, its characteristics, and potential applications in creditworthiness assessment.
- Facebook profiles of private insolvent persons as an attempt: This chapter presents a specific case study exploring the use of Facebook profiles to assess the creditworthiness of private individuals who have declared insolvency. It describes the attempt, its methodology, and the results obtained.
Schlüsselwörter (Keywords)
This work focuses on the intersection of creditworthiness assessment, social network data, and data analytics. Key terms include credit reporting agencies, credit scoring, social network sites, Big Data, data warehousing, data mining, information asymmetry, private insolvency, and ethical considerations.
- Citation du texte
- Jochen Schweizer (Auteur), 2014, Creditworthiness of private persons. An approach using social network sites, Munich, GRIN Verlag, https://www.grin.com/document/316442
