Whether it comes to pricing and extending credit, predicting fluctuations in the market, or protecting against operational breakdowns or abuse by illicit actors, financial institutions are in the business of managing risk. But in each of these domains, a bank’s risk management decisions are only as good as the information and analytic tools they have at their disposal. Where such information is lacking—or, worse, where well-established ways of measuring risk are potentially biased or misleading—banks may shy away from doing business with certain customers or markets, leaving already underserved populations without vital access to financial services and missing out on business opportunities.

 

Read K2 Integrity’s full white paper, “Promoting Financial Inclusion with Federated Learning: The Consilient Solution”.