Similar articles
Create a post to Start Earning on Pejoweb.
Learn how it works

Gender Bias Complaints Against Apple Card Signal A Dark Side To

The possibility that Apple Card applicants were subject to gender bias opens a new frontier for the financial services sector in which regulators are largely absent, argues

In late August, the Apple Card debuted with a minimalist look and completely “no fee” model, creating a frenzy of anticipation. Millions signed up to be alerted for the release. Designed to boost traffic to its slow-to-be-adopted Apple Pay system and increase consumer dependency on iPhones, the Apple Card marked another significant innovation in access to financial services.

Fast forward two months, and Apple Card may now find its place in history for a less positive reason—the dark side of the technological revolution rearing its ugly head. Last week, Danish programmer David Heinemeier Hansson tweeted that after both he and his wife Jamie applied for the Apple Card with much of the same or shared financial information, he was astonished to receive a credit limit 20 times higher, despite his wife’s higher credit score.

Cue the viral tweet storm that followed, rife with accusations of bias in Goldman Sachs’s underwriting model. (Goldman developed and issued the card.) Adding fuel to the fire, Apple co-founder Steve Wozniak shared that the same thing had happened to him and his wife. Officials from the New York Department of Financial Services quickly chimed in, assuring the Twitter sphere that they would investigate.

Technology is undeniably transforming the financial services industry. Fintechs, Big Tech, and banks are using increasing volumes of data, artificial intelligence, and machine learning to build new algorithms to determine creditworthiness. The lending process, which was historically plagued by frictions, is becoming potentially more accurate, efficient, and cost effective.

For small-business lending, technology is changing the game, providing access to capital for more small businesses that need it to grow and succeed. But when lending relies on algorithms to make loan and underwriting decisions, as the Apple Card situation illustrates, the potential for discrimination grows.

Should the customers be able to see what pieces of data may have led to a loan rejection or a lower credit limit? Should regulators have access to the algorithms and test them for the impact they have on underserved or protected classes?

The Apple Card situation has raised these questions in a visible way and the public engagement has been strong and immediate. Clearly, this is a new frontier for the financial services sector—and the industry’s regulators are also operating without a roadmap. We need to stop arguing about more versus less financial regulation and begin the hard work of creating smart regulation. This would include at least three parts, all of which are all hard to accomplish:

Disclosure rules on who gets to see what is in the credit algorithms.
Increased expertise at the regulatory agencies.
Data collection to know who is getting loans and where the gaps are occurring.

The Apple Card fiasco is not going to be an isolated incident—it’s the canary in the coal mine for the financial services industry and regulators playing catch up to the implications of the fintech revolution. For all the promise that comes with the Apple Card or other new innovations for deploying capital, if creditworthy customers are being shut out, that’s a problem. Even worse, if we don't understand why, we can’t fix it.


Log in to Like & Comment


ChiGod (Basic)   8 months ago

JayKay (Basic)   10 months ago

Richard2 (Basic)   10 months ago

Sotty (Basic)   10 months ago

chisomifedilimuo (Basic)   10 months ago

Bensonjnr12 (Basic)   10 months ago


Articles that may interest you

As part of our measures to curb police brutality in Delta State, moving forward, we will be establishing a five-member Police Complaints Committee to address complaints against police officers. This C

As part of our measures to curb police brutality in Delta State, moving forward, we will be establishing a five-member Police Complaints Committee to ...


Apple to pay $113m to US states over iPhone battery complaints

Apple has agreed to pay $113 million to settle litigation with more than 30 US states over its slowdown in performance of older iPhones to manage batt...


Black Physicist Rethinks The 'dark' In Dark Matter

When many kids were running around playing tag or video games, Chanda Prescod-Weinstein was thinking about particle physics.After her mother took her ...


Probe: 5 things magu revealed as he alleges bias after panal allegedly told buhari to fire him

The probe of the suspended Chairman of the Economic and Financial Crimes Commission, EFCC, Ibrahim Magu has continued to generate both controversy and...


Media-Bias Chart Provides In-Depth View, Greater Control For Media Buys Based On Brand Values

Ad Fontes Media is releasing a premium version of its media-bias chart to help advertisers determine where to buy media based on the brand’s va...



Uploads that may interest you

Gender and Health lecture by Dr K S Bojang.ppt

Bad Card by Bob Marley.MP3

Against All Odds by Westlife [Coast to coast album].mp3


Pejoweb © 2021