The Impact of Social Network Data on Personal Credit Risk Assessment

In the digital age, personal credit risk assessment has become a hot topic of discussion and research in the field of technology finance. With the popularity of social networks and the development of big data technology, personal credit risk assessment models using alternative data have emerged as a solution to the problem of personal credit risk assessment, with social network data providing an important supplement to personal credit risk assessment. This article aims to explore the application and impact of social network data in personal credit risk assessment by integrating, summarizing, and analyzing relevant literature. Through research, it has been found that social network data can be used to analyze information such as borrowers’ consumption habits and social behavior, thereby helping lending institutions to more comprehensively and effectively assess personal credit risk. This article also raises two issues in the application of social network data in personal credit risk assessment, aiming to provide suggestions for financial institutions on using social network data to promote the healthy development of credit finance.