Influencing Fair Lending Practices through the Mechanism of AI-in-the-Loop

Muhammad Al Zafar Khan, Nouhaila Innan, Jahvaid Hammujuddy, David Mhlanga

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

Artificial intelligence (AI) use in the financial industry, particularly lending, has revolutionized efficiency and risk assessment. AI not only offers immense potential to enhance lending processes but also raises profound questions about fairness and discrimination, especially in financially sensitive situations where a customer’s loan application is rejected. This chapter explores the intricate relationship between AI and fair lending practices and suggests guidelines for lenders to ensure equity when granting or denying loan applications. Through examining key literature pieces, this chapter suggests best practices within the context of “AI-in-the-loop”.

Original languageEnglish
Title of host publicationFinancial Inclusion and Sustainable Development in Sub-Saharan Africa
PublisherTaylor and Francis
Pages74-79
Number of pages6
ISBN (Electronic)9781040300589
ISBN (Print)9781032849379
DOIs
Publication statusPublished - 1 Jan 2025
Externally publishedYes

ASJC Scopus subject areas

  • General Economics,Econometrics and Finance
  • General Business,Management and Accounting
  • General Social Sciences

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