Facebook is about to seriously put a dent in the way you are able to get a loan: by helping lenders to analyze your friend list as a meter to decide if YOU are reliable with your cash or not. That’s right, if you have a friend who is not good with money, a lender can refuse to give you money – no matter how sound your financials may be.
According to The Mirror:
The shocking news that online buddies who splash the cash might mark you out as a dodgy loan risk comes with new technology recently patented by the social network giant.
It offers banks the chance to look at your friends’ profiles to judge if you’re likely to pay loans back – or not.
When the banks have access to your profile, they will be able to decide if they want to be your lender based on your FRIENDS’ credit history.
Mark Zuckerberg’s tech behemoth bought patents for just over £26 million, including the right to sell on friends lists to financial providers, according to Quartz.
The patent reads: “When an individual applies for a loan, the lender examines the credit ratings of members of the individual’s social network who are connected to the individual through authorized nodes.
“If the average credit rating of these members is at least a minimum credit score, the lender continues to process the loan application.
“Otherwise, the loan application is rejected.”
The impact of this is not yet known, but it could affect bank, career or student loans
The patent, which has been granted by the US Patent and Trade Office, was bought from gaming network Friendster back in 2010.
But according to expert Adam Epstein: “Major tech companies (Facebook and Google, specifically) secure patents for weird ideas all the time — that doesn’t mean they’ll ever be implemented,”
“Facebook could decide to use just part of the patent, while disregarding the lending portion.
“Or it could just be a superfluous part of the patent bundle Facebook bought from Friendster that was never intended to be used.
“Or the patent could be an asset to be sold on to someone else.”
Facebook have declined to comment on the patent.
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