The Invisible Credit Filter

A bank introduces an AI system to pre-screen loan applications.

The model was trained on historical data and reduces processing time by 40 %.

After one year, a pattern emerges:

• Self-employed applicants receive loans significantly less often.
• Salaried employees with comparable income are approved more frequently.

The AI uses the monthly income volatility as a strong indicator.

Self-employed people naturally have more irregular earnings.

Question:
Is this a legitimate risk assessment — or structural discrimination?

Solution follows tomorrow.