Startup Lenddo has launched a 'social network' credit card in Colombia that will see applicants approved or declined based on their reputations on Facebook and Twitter.
Founded in 2011, Lenddo aims to help the emerging middle class in developing countries to use their social connections to build creditworthiness and gain access local financial services.
The company's algorithms assess applicants' activity on sites such as LinkedIn, Google+ and Twitter as well as their 'trusted connections' who will vouch for them.
Lenddo secured $8 million in series a funding in 2012 and currently provides online loans in the Philippines, Mexico and Colombia. The startup is now moving into plastic, unveiling the social network Visa card, issued by Scotiabank subsidiary Banco Colpatria.
CEO and co-founder Jeff Stewart told Techonomy that more than 1000 Colombians applied for the card in its first 24 hours, handing over to Lenddo access to their social media data.
Says Stewart: "We saw what social networks did to media and news and music. This card is just another example of that."