Fintech Algorithms Discriminate Less than Traditional Lenders

An article from Quartz article using a study on US mortgages shares that algorithmic lending is actually less discriminatory than traditional loan officers; the US housing market has historically been prejudiced against minorities, resulting in higher costs compared to whites; while 7.9 basis points may not sound like a lot, the result is $765 million in additional interest costs each year; the study still found that fintech companies still discriminate, but 40% less than loan officers making face to face decisions; there was however no discrimination when it came to loan approvals. Source

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