Kremen
- 2. © Sociogramics, Inc. 2
Automation has hurt the under-banked
disproportionally
Past
Small Town Lending Principles
Today
“King” FICO
- 3. © Sociogramics, Inc. 3
The Promise and the Dream
What social media gives credit grantors,
depositories and other risk takers such as
insurance
– 360 degree view of the borrower – returning the
small town banker
The core of finance applications can be
improved thru social media
Thin, no file and header only files applicants
benefit the most
- 4. © Sociogramics, Inc. 4
With Social Media
You Can Truly Know Your Customer!
Yesterday’s Model
4321 0099 9999 1234
Internal
Data
3rd Party
Score Credit
Bureau
Today’s Model
George Bailey: banker,
father, veteran, volunteer
Internal
Data
3rd Party
Score Credit
Bureau
4
- 6. © Sociogramics, Inc. 6
ECOA (Race Distribution)
11%
9%
6%
0%
8%
6%
3%
1%
Black Latino Asian Other
Facebook
US Facebook Population
Percentage of Population
25%
19%
8%
6%
Black, non-
hispanic
Hispanic
Twitter
US Twitter Population
Percentage of Population
Sources: The Pew Research Center’s Internet & American Life Project
http://mashable.com/2010/04/05/facebook-us-infographic/
- 7. © Sociogramics, Inc. 7
ECOA (Income Distribution)
0%
5%
10%
15%
20%
25%
30%
35%
40%
Facebook
Twitter
Source: http://blog.kissmetrics.com/social-media-by-demographic/
- 8. © Sociogramics, Inc. 8
ECOA (Age Distribution)
0%
5%
10%
15%
20%
25%
30%
35%
13-17 18-25 26-34 35-44 45-54 55+
Facebook
Twitter
Linkedin
Source: http://www.go-gulf.com/blog/social-networking-user
- 9. © Sociogramics, Inc. 9
FCRA – focus on existing adverse action codes
01 Amount owed on accounts too high
02 Delinquency on accounts too high
03 Too few bank revolving accounts
04 Too many revolving accounts
05 Too many accounts with balances
06 Consumer finance accounts
07 Account payment history too new to rate
08 Too many recent account inquiries last 12 months
09 Too many accounts opened last 12 months
10 Proportion of balances to credit limit too high
11 Amount owed on revolving accounts too high
12 Length of credit history too short
13 Time since delinquent too recent
14 Length of time accounts have been established
15 Lack of recent bank revolving activity is short
16 Lack of recent revolving activity too short
17 No recent non-mortgage balance information
18 Number of accounts with delinquency
19 Too few accounts paid as agreed
20 Time since derogatory public record collection
21 Amount of past due on account
22 Serious delinquency, derogatory public records or
collection
24 No recent revolving balances
28 Number of established accounts
30 Time since last account opening too short
31 Too few accounts with recent payment
32 Lack of recent installment loan information
33 Proportion of loan balances to loan amounts too
high
34 Amount owed on delinquent accounts
36 Length of time open accounts have been
established
37 Number of consumer finance company accounts
established/relative to length of credit history.
38 Serious delinquency and public records or
collections filed
39 Serious delinquency
40 Delinquency public record or collections filed
47 Number of consumer finance inquiries
97 Lack of recent auto loan information
98 Length of time consumer company loans have
been established
99 Lack of recent consumer finance company
account information.
- 11. © Sociogramics, Inc. 11
Sociogramics Brings Value by a 360 Degree
Customer View
Cross-Selling and
Re-Underwriting
CUSTOMER
MANAGEMENT
Customer
Communications
and Engagement
CUSTOMER
ENGAGEMENT
Application
Verification and
Underwriting
ORIGINATION
Collections and
Loss Mitigation
COLLECTIONS
Sociogramics Platform
- 12. © Sociogramics, Inc. 12
Sociogramics is returning character and
community to financial institutions!
Team Partners
Gary Kremen
Founder & CEO
Eric King
Vice President, Operations
Shah Rahman
Vice President, Engineering
STRATEGIC ADVISORS
SEED INVESTORS
LEGAL
Nigel Morris
QED Investors
Frank Rotman
QED Investors
