Big Data and Scoring in the Financial Sector

Abstract

Scoring is an assessment procedure, especially for the purpose of credit assessment. Big data did not “create” that kind of procedure but influences the calculation of probability forecasts by opening up additional data sources and by providing enhanced possibilities of analyzing data. Scoring is negatively connoted. While being connected to risks, it opens up opportunities for companies as well as for the data subject. Since 2009, scoring is regulated by the German Federal Data Protection act, which entitles the data subject to get information free of charge once a year. Currently, a draft amendment concerning scoring is discussed in Parliament.