Insight certainty 5/5 debate potential 2/5

Breslow: Social media data is too noisy for assessing creditworthiness

Noah Breslow · Noah Breslow & Abhra Mitra, onDeck // Data Driven #27 // May 2014 (Hosted by FirstMark Capital) · May 28, 2014 · at 9:05

Noah Breslow, CEO of OnDeck, discusses the limitations of relying on social media data when evaluating small business credit risk.

0:00 / 0:04exact quote · 4.9s
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“Social data, and Abra said this to me many moons ago is, is very, very noisy.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

More from Noah Breslow

Assertion Not checkable as stated
Breslow estimates $100B in unmet US small business loan demand
“We think there's another hundred billion or so of unmet demand in this country.”
Noah Breslow May 28, 2014 ▶ 2:11 Noah Breslow & Abhra Mitra, onDeck // Data Driven #27 // May 2014 (Hosted by FirstMark Capital)
Insight
Breslow: Electronic data enables fundamentally faster, novel credit decisions
“By collecting electronic data on small business, you could really make a different kind of loan decision in a much faster time frame.”
Noah Breslow May 29, 2014 ▶ 4:10 Panel Discussion // Data Driven #27 // May 2014 (Hosted by FirstMark Capital)
Prediction Not checkable as stated
Breslow: OnDeck cost structure will remain fixed despite rising interest rates
“We think our overall cost structure will stay relatively fixed even in a rising rate environment.”
Noah Breslow May 29, 2014 ▶ 16:31 Panel Discussion // Data Driven #27 // May 2014 (Hosted by FirstMark Capital)
Assertion Not checkable as stated
Breslow: US small business loan demand is roughly $250 billion
“When you look at these smaller loans and what the demand looks like in this country it's about a quarter trillion dollars of demand that exists out there for small business loans.”
Noah Breslow May 28, 2014 ▶ 1:57 Noah Breslow & Abhra Mitra, onDeck // Data Driven #27 // May 2014 (Hosted by FirstMark Capital)
Assertion Supported
OnDeck has loaned over $1 billion to US small businesses
“We've loaned over a billion dollars to small businesses all across America.”
Noah Breslow May 28, 2014 ▶ 0:18 Noah Breslow & Abhra Mitra, onDeck // Data Driven #27 // May 2014 (Hosted by FirstMark Capital)
Assertion Partly supported
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“Oliver Wyman did a study where they looked at loans to small businesses underneath a 100,000 dollars, and they found that the traditional banking process, which can take about 30 days on average is almost unprofitable, ah, for the bank, ah, in most cases.”
Noah Breslow May 28, 2014 ▶ 1:35 Noah Breslow & Abhra Mitra, onDeck // Data Driven #27 // May 2014 (Hosted by FirstMark Capital)
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