Other companies like Upstart have embraced big philippines number code data and machine learning for the lending process. Upstart provides personal loans to consumers based on a creditworthiness assessment that is based in part on their education and employment history. According to Consumer Finance Monitor , the results of the Upstart model, which uses alternative data and machine learning, “approved 27% more applications than a traditional lending model and yielded 16% lower average annual rates of return. “ It’s clear that AI can improve access to credit for minority and low-income borrowers who have been left out of traditional lending.
One important aspect to note is that unfair lending is always a risk for machine learning models. The proliferation of machine learning will expose human biases, acting as a ‘moral mirror,’” according to Shannon Vallor , a professor in the philosophy department at Santa Clara University and an AI ethicist at Google. “Patterns are not just pattern identifiers, but also pattern amplifiers,” she told news agency Forrester . To add to what Vallor says, the technology is neutral and is not inherently harmful. It’s the attitudes that exist and have the potential to influence technology that are harmful. With this in mind, technologists can leverage AI’s capabilities to equalize fair lending as long as ethics are at the forefront of product design and coding .
