Wonga, Lenddo, Lendup: Big data and social-networking banking

As befits Silicon Valley, “big data” is mostly big hype, but there is one possibility with genuine potential: that it might one day bring loans–and credit histories–to millions of people who currently lack access to them. In the not so distant past, the lack of good and reliable data about applicants with no credit history left banks little choice but to lump them together as high-risk bets. As a result, they either were offered loans at prohibitively high rates or had their applications rejected.