Economics Homework Help

I’m stuck on a Economics question and need an explanation.

1.  Technological advances have led to the widespread use of credit scoring by financial institutions in making their lending decisions. In what ways might this practice enhance the efficiency of the financial system?

2. Discuss briefly a time when you have employed both an informal and formal financial instrument. What advantages (and or disadvantages) might there be to engaging in informal arrangements as opposed to the formal financial sector?