Algorithms can be used to decide when to withhold loans, mortgages and even bank accounts, on the basis of who is likely to make money for the bank. Minority ethnic groups can be disproportionately disadvantaged within these prediction systems by being determined as not meeting the criteria for lending, even when others with the same financial status get approved. Minority groups are often treated as high risk (more likely not to pay back money) because of the use of proxy data in financial institutions. This means that people from minority ethnic groups can find it hard to get credit, and get offered higher interest rates, widening poverty gaps.
Artificial intelligence (AI) is making rapid inroads into many aspects of our financial lives. Algorithms are being deployed to identify fraud, make trading decisions, recommend banking products, and evaluate loan applications. This is helping to reduce the costs of financial products and improve th… Through a case study of mortgage applications, this article shows how […]
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AI was supposed to be the pinnacle of technological achievement — a chance to sit back and let the robots do the work. While it’s true AI completes complex tasks and calculations faster and more accurately than any human could, it’s shaping up to need some supervision. There is data which predicts that the introduction […]
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