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I definitely agree with "Social media data could fill holes in the data available to credit scoring particularly where there is little other information about a person eg young people who have yet to build up a credit history".

On its own, Social media data is unlikely to be the only source of information for credit asssessment. There are a few reasons for it, but I feel that the most important one is that it is pretty easy to manipulate the data.

However, if social media data is combined with another powerful source, like a banking data of the user, it can certainly be a very useful.

By the way, there are companies that have been using social media data for scoring for a few years already :)

Would be lovely if you could provide a few exmaples of using the data though. Apart from that, great job!

Well, I think it goes a bit further than that. Say the availability of previewing Domain Authority in search results is of a significant importance for me. Luckily there is a plugin available for Google Chrome that allows be to combine my favourite browser with an essential tool. If this plugin wasn't available, perhaps I'd have to use a browser made by MOZ (and probably there would be one)...hence google would get less data, less impressions, less income. That's what the banks don't get.

As for the costs and profits, banks are already losing their sectors. PayPal, TransferWise and many others are offering better and cheaper solutions..and the presence of bank fees is something that would result in lower volumes, hence profits. Is there anyone using a paid personal email account? Why would then anyone pay for having a bank account?

Well, banks could certainly live out of client deposits without charging any unnecessary fees...if only the banks could optimise their processes.

Yes, Ads are the core revenue stream of Google today. Would it still be main contributing over 90% in 10 years from now? I doubt that.

Next to this, Google integrates advertising in its products like gmail. Hence, Google Ads are happening outside of the search engine itself as well.

Hey there Jop,

Well, there were quite a few articles that explain what PSD2 is. Hence you can treat this piece as the ones designed for "advanced users". You can find out more about PSD 2 in my previous post here: https://www.finextra.com/blogposting/12261/psd-2-and-xs2a-impact-on-the-banking-sector

Also, we have uncovered some basics of PSD 2 on our blog here: http://kontomatik.com/post/eu-it-s-official-a-new-era-in-banking-starts-now

Do you, perhaps, work for a bank?:)

Banking data is a jet fuel for any company that wants to issue loans. Such data can be used for verification of the provided information as well as indepth analysis of client's financial health. The thing is, for years banking data was nearly impossible to obtain. Today Kontomatik supplies it within 12 seconds or less. 

When looking at it from B2B perspective, you certainly have a point. Most of the FinTech companies are still in their early stage and that's why they are much more often customer centric, rather than business.

Speaking of my personal experience as a consumer of financial products. Whenever I am a party of an international transaction, I always have to pay costs. How clear is this cost structure? Not clear at all. Actually once I had to pay fees that amounted nearly 30% of the transcation. 

When it comes to problem solving, usually it takes me a few short emails with PayPal or Skrill to get my issue resolved. Timewise it may take minutes, usually hours. Compared to this, solving issues with banks is quite a big trouble. I had to send over notarised copies (hard copies!) of my passport, write long and descriptive messages and wait for days and weeks to solve my puzzle. 

What I am trying to say is that consumer finance has been improved quite well with the presence of FinTech companies and it is only the question of the time when the business sector start benefiting from it the same way. 

You are certainly right, some FinTech companies may provide worse support than the banks, in most of the cases banks have at least some standard. That being said, it all depends on your choice of a financial service provider. Established, or simply customer-centric, FinTech companies would certainly be able to help you better and faster than any bank.

Spend $120 in the next five hours on clothing to earn a badge of Shoppoholic! haha :) Jokes aside, great article and a useful tip for banking!