Wait, isn't a credit rating already a measure of (financial) trustworthiness?
What kind of parameters can the government record which would actually make a credit rating more reliable?
What kind of parameters can the government record which would actually make a credit rating more reliable?
https://en.wikipedia.org/wiki/Social_Credit_System
Video describing a similar system (linked to from the wiki page):
https://www.youtube.com/watch?v=lHcTKWiZ8sI
Possibly one of the scariest concepts I've seen in a while.
There are other ways to think about credit worthiness. As an example your checking and savings account can be used to show how you actually do each month, you can look at social connections to see who my friends are and if you have something like Google Wallet or Square Cash or Venmo you can also look at how good people are at paying each other back.
So plenty of things to look at that aren't being recorded right now.
Source: https://www.ft.com/content/e8ccd7b8-6459-11e6-a08a-c7ac04ef0... [FT might be paywalled, but I was able to reach it via Google for free]
Maybe someone enterprising can start a service that automatically posts a bunch of innocuous stuff to a FB profile so I don't have to bother wasting my time with it.
Given that scoring bots in mass use will necessarily decrease the dimensionality of the data into fewer, more tractable features, and thus creating bots need only to target the dimensionality-reduction step, rather than reproduce "human behavior."
Which seems rather simple given the variance in natural language and normal human social interaction.
Currently, credit ratings agencies give ratings to organisations based on the fees of those same organisations asking them to rate them. This creates a conflict of interest. A large conflict of interest.
Like most FinTech, and change is more a question of law and regulation than it is technology 'disrupting' an opportunity.
In finance, laws or regulations change and Fintech tends to be the fastest to react. It is regulators who drive where Fintech goes (not in all cases, but in I'd argue most), however.
The result is also not only used to put you at financial disadvantage, they use it everywhere there is a queue to put those good citizens into the front of the queue.