Using Predictive Analytics and Cell Phone Usage to Build a Credit Score
This article describes how one company has created software that analyzes a customer's cell phone usage data to create a lifestyle profile and apply a credit rating score. The software factors in "length of calls, time of day, and location." For example, a user who makes phone calls in the middle of the night on a prepaid phone card could be considered a credit risk. Essentially, every phone call provides a set of data points that can be incorporated into building these complex predictive models. Single tier data mining (of cell phone records in this case) is nothing new, but worth noting here is how the mined data is extrapolated for use in another domain, such as creating a credit rating score.
My name is Hugo Evans. You can also find me on twitter @TechPAScode. I am the CIO for A.T. Kearney Procurement & Analytic Solutions (www.atkearneypas.com). I love how technology is reshaping our world. However, I am not a fan of technology for technology's sake and loath over-hyped technology. Effective technology, I believe, combines a balanced mix of people, process, and tools. My goal is to share stories about these types of technologies infused with my dry sense of humor. Hope you find them informative and applicable to your life and/or career.