Thursday, March 17, 2016

Disrupting Social Mobility

There's a company I've seen a lot of advertising for lately, called SoFi, which creeps me out mightily.  It's a bank, but won't call itself that.  Kinda like how Uber doesn't have any employees.

SoFi aggregates a bunch of information about its clients and then bestows on them the honor of SoFi's approval for loans and refinancing - for life.  They pick the best financial bets and give them loans.  (Isn't that what a bank does?  Yes, except a bank does this on a loan-by-loan basis.  SoFi signs you up for life.)

The for life  part is what I hate.  I don't think it's bad business, but it seems like an ideal way to permanently separate members of different economic classes.  

And I didn't even get to the most dystopian part yet: they want to create a dating platform for their clients.  Forget about subtle class markers like accents or dental work.  

The most insidious part of this is that it makes perfect business sense.  SoFi offers unemployment insurance to its clients, so that they don't lose their big bets to the random financial setbacks that throw careers into chaos.  

Granted, taxpaying Americans all have access to unemployment insurance, but the public program is not always sufficient to keep people afloat during bad times.   I imagine that SoFi's offering is significantly better than what you'd get from the government.  

But if availability of unemployment support makes Poors too lazy to find work again, why won't it foster indolence among the SoFi class?  

The better we get at figuring the odds, the better we get at stacking them.  

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