Article is based on two fallacies…
(1) Accounting can be automated
(2) Risk assessment can be automated
With (1), future revenue projections, projections of risks to business model, risks from disruptive technologies are very fuzzy and not easily automated. Bookkeeping can be somewhat automated. Accounting … not so fast there, Speedy.
With (2), Gustavo Fring’s profile may look very similar to that of the CEO of Angelo’s Burgers. Guess which one is the lower loan risk in real life.
A computer model based on a finite amount of factors can only go so far in determining risk. There’s a place for manually underwriting people who don’t qualify (say, low income on paper, high assets) and for checking up on people who do qualify. (Say the person who’s had a high-paying job for the past 10 years, but may lose it tomorrow due to a publicized scandal.)
