One of the problems with loans made via traditional relationship banking is bias. When people make the loans, their indi
Posted: Thu May 05, 2022 8:08 am
One of the problems with loans made via traditional relationship
banking is bias. When people make the loans, their individual
biases can cause them to give fewer loans to women and minorities.
a. How do loans made by fintechs (where machines make decisions
instead of people) compare to relationship banking, along this
dimension? Are loans by fintechs: (a) immune from such baises, (b)
less sensitive to but still affected by such biases, (c) equally
affected by such biases, or (d) more affected by such biases.
And please explain your answer in 4 – 5 sentences.
banking is bias. When people make the loans, their individual
biases can cause them to give fewer loans to women and minorities.
a. How do loans made by fintechs (where machines make decisions
instead of people) compare to relationship banking, along this
dimension? Are loans by fintechs: (a) immune from such baises, (b)
less sensitive to but still affected by such biases, (c) equally
affected by such biases, or (d) more affected by such biases.
And please explain your answer in 4 – 5 sentences.