PYMNTS, December 1, 2021, LendingClub on the Benefits and Potential Pitfalls of Automated Lending
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Automation has brought speed and convenience, but it also has introduced potential pitfalls. In the past, minorities or other disadvantaged groups may have faced prejudicial decisions from loan officers. Now, lenders face the challenge of ensuring their algorithms do not inadvertently discriminate.
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LendingClub recently joined the National Community Reinvestment Coalition (NCRC) and other FinTech firms in asking the Consumer Financial Protection Bureau (CFPB) to weigh in on lenders’ obligations to ensure against disparate impacts.
