Filed under: Algorithms, Analytics, Datarati, Predicitive Modelling | Tags: Data Mining, Predictive Analytics, Visa
If you ever doubted the power of the credit card companies, consider this: Visa, the world’s largest credit card network, can predict how likely you are to get a divorce.
There’s no consumer-protection legislation for that.
Why would Visa care that your marriage is on the rocks? Yale Law School Professor Ian Ayres, who included the Visa example in his book Super Crunchers, says “credit card companies don’t really care about divorce in and of itself—they care whether you’re going to pay your card off.”
And because people who are going through a divorce are more likely to miss payments, your domestic troubles are of great interest to a company that thrives on risk management.
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