Would you borrow money off Facebook?

Currently there are hundreds of reputable personal loan providers competing for your business. They use credit reference files and credit scores to price and approve credit.

Now Facebook is reportedly planning to launch a payments service for Facebook Messenger that would give it access to valuable financial information about users. That information could be used to assess people for credit and loans.

“Facebook will be in perfect position to extend credit and become a financial services company,” said Jeff Stewart, chairman of Lenddo.

This would mark the emergence of social credit – loans and credit based on your social information as well as your financial history.

Source: Australian Financial Review