By: Kalyeena Makortoff
November 11, 2019
Banks can now more accurately identify ‘unprofitable’ or costly customers
Advances in banking technology are putting vulnerable customers at risk of discrimination, a former City regulator has said.
Mick McAteer, a former board member at the Financial Conduct Authority (FCA), said lenders and insurers were gaining access to tools to more accurately identify “unprofitable” or costly customers, increasing the risk of exclusion for certain sections of society.
The issue has gained fresh attention after an algorithm used to set credit limits for the new Apple Card sparked claims of gender discrimination. David Heinemeier Hansson, a tech entrepreneur, said he had been offered 20 times more credit than his wife.