This framework integrates blockchain auditing and causal fairness analysis to enhance fintech ethics, indicating compliance with the EU AI Act.
Concerns about fairness, accountability, transparency, and ethics (FATE) have intensified with the rapid adoption of arti- ficial intelligence (AI) in financial technology (FinTech). Al- gorithmic lending systems risk entrenching socioeconomic and geographic disparities. To address these risks—and to align with emerging regulation such as the EU AI Act—we propose a multi-layer governance framework for credit-risk modelling that integrates: (i) blockchain-verifiable auditing via smart contracts (Hyperledger Fabric); (ii) causal mod- elling with counterfactual, pathway-aware fairness quanti- fied by the Regional Inclusion Score; (iii) a hybrid data pipeline that fuses local micro-data with controlled geospa- tial skew; and (iv) a fairness-aware gradient-boosted learner (FAIRXGBOOST) embedded in a continuous monitoring loop. The smart-contract layer provides cryptographic au- ditability of data lineage, model updates, and alerts, oper- ationalizing fairness as a regulatory constraint that triggers on-chain notifications when RIS declines. Across benchmark credit datasets with induced regional skew, the system main- tained RIS at or above the regulatory threshold of $0.85$ while preserving competitive predictive performance, with automatic alerts when fairness degraded—demonstrating how causal analysis and ledger-backed governance can jointly yield reliable, regulator-verifiable AI for FinTech.
No takes yet. Share an insight, caveat, or question.
Samah S. Kareem (2025) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: