Banks are Eager to Tap into AI, but Must First Address the Perils

3 min read

When it comes to artificial intelligence (AI) and banking, there’s a great promise – more business, less risk. But the intersection of AI and financial services can be fraught with peril, too. There’s the potential – and in some cases reality – for algorithms to reinforce social biases and disenfranchise minorities. This is especially relevant to lenders who use AI models to predict default risk. It’s a topic we’re likely to keep hearing about as it gains traction among consumers and policymakers. Consider a recent proposal by Democratic presidential candidate, Sen. Cory Booker, that would require big companies to test…...

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Keith Catanzano Keith Catanzano is the co-founder and partner at DC-based 2River Consulting Group. Keith created LIFT, a SaaS-based AI and data analytics platform that helps financial companies -- lenders in particular -- use all of their data to simplify decision making, reduce risk and increase sales and profits. He has previously written for Credit Union Journal.