= New York-based banking startup
Movenbank Founder Damelin:
"Credit scores are a lagging indicator -- they only look at what has happened in the past," he says. "They [credit agencies] don't use data to look into whether your behaviour is risky or not now."
Movenbank's goal is not just to use technology to personalise the banking experience, but to reinvent the traditional risk model. King spent more than 18 years working for traditional banks and was struck by the opacity of much of the credit assessment process. "Most banks reject around 50 per cent of credit applications. It's a pretty strange business when you reject half of your potential customers and don't even tell them why."
At the heart of Movenbank is a concept call CRED. This takes into account an individual's traditional credit score but also aspects such as their level of community involvement, social reputation and trust weighting. Do they have a good eBay rating? Do they send money peer-to-peer? It also measures their social connectivity -- how many friends do they have on Facebook? Who are they connected to on LinkedIn? Do they have an influential Klout score? It combines this data, not just to assess their risk, but to measure the potential value of the customer. If you refer other customers from your network or pay your bills on time, your CRED score will go up. "It's not about your credit, but your credibility," King says.
A big question mark lies around people's readiness to open up their social data, but King believes consumers are willing to make a trade-off if they know how it is going to be used and what they will gain in return." (http://www.wired.co.uk/magazine/archive/2012/09/features/welcome-to-the-new-reputation-economy?)