Finarkein warns AA data processing risks bias, no clear rules
Roughly 87 million data fetches pass through the system, with each cleared in under a second.
Technology providers in the AA ecosystem turn data into a credit score, risk flag, or recommendation almost instantly, but the report from Finarkein (shared at the Global Fintech Festival) warns that mistakes and biases can slip through, and there aren't clear rules yet for fixing them.
Finarkein urges broader financial data, accountability
Most current credit models rely on bank deposit data, so people with formal banking histories get an easier ride.
That means people who may not have formal banking in place may end up being excluded.
The report suggests using a wider range of financial info, like investment history, to make lending fairer for everyone, plus a new framework to boost transparency and accountability among providers.