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Dawn of the Data: Future of Consumer Lending

A session at SXSW Interactive 2011

  • Jessica Jackley
  • Paul Leonard
  • Douglas Merrill

Saturday 12th March, 2011

9:30am to 10:30am (CST)

Technology and mathematics are transforming consumer lending. Historically, it has been nearly impossible for people with bad credit to get loans. Yet, these are often the people who need it most - to buy groceries or pay bills.

Until now, lenders determined who should get loans through a simple underwriting function based on a small amount of credit data. When this data is missing or wrong, banks deny the loan, leaving people to payday loans or pawn shops - very expensive options that put people further in debt.

Millions of people are being denied credit because underwriting hasn’t evolved. Why use only a handful of variables when we have vast amounts of data provided by the customer, the Internet, and social media? All data is credit data and we should use it all to make better underwriting decisions.

Analyzing vast amounts of data, however, requires complex machine learning more akin to search engines than your corner bank. The future of financial services is to become more like a recommendation engine, and less like a place where you stand in line to deposit checks.

The panelists will discuss how to use large-scale data analysis to re-invent underwriting and replace today’s antiquated methods. Better underwriting will open up good credit to people who don't have a lot of good options and materially improve the financial lives of the people who need it most.

LEVEL: Intermediate

About the speakers

This person is speaking at this event.
Jessica Jackley
This person is speaking at this event.
Ryan Gilbert

Filling gaps in the banking system. CEO @ Billfloat. Advisor @ Square. bio from Twitter

This person is speaking at this event.
Paul Leonard
This person is speaking at this event.
Douglas Merrill

Next session in Salon F/G

11am Banks: Innovate or Die! by Rob Garcia, Joshua Reich, Bob Weinschenk and Brett King

13 attendees

  • adamerlebacher
  • Ben Carlos Thypin
  • erwin blom
  • Jason Ugie
  • Jesse Burkunk
  • Mark Hall
  • Mike Bianchini
  • ɹǝɯoɹʞ (dılɟ) dılıɥd
  • Ryan Gilbert
  • scldn
  • Tibet Sprague
  • Tony Amoyal
  • wilbertbaan

25 trackers

  • 154
  • Andy Agnew
  • André Luís
  • Anonymous
  • Arena Reed
  • Beau
  • Becky Minervino
  • Sean Patrick Henry
  • Cat Posey
  • danielc
  • Dan Weingrod
  • Jeremy Bell
  • liangcw
  • Omar Green
  • Manix Kalv
  • Mez Hopking
  • Niran Babalola
  • Phoebe Connelly
  • @r4vi
  • TH Schee
  • Scott Day
  • Shannon Darrough
  • Stephanie Fletcher
  • tolleson, terry
  • Alan Colmenares

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When

Time 9:30am10:30am CST

Date Sat 12th March 2011

Where

Salon F/G, Hilton Austin Downtown

Session type

Panel

Session Hash Tag

#DawnofData

Short URL

lanyrd.com/scqrz

Official session page

schedule.sxsw.com/…event_IAP7553

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