Compound algorithmic vulnerability: a transformative service perspective on AI mediated financial services

What is it about?

This paper explains how artificial intelligence in financial services can unintentionally create and reinforce disadvantage for some consumers. Instead of focusing on single biased decisions, it shows how multiple issues, such as unfair data, misinterpreted behaviour, and targeted offers, combine over time. These interactions can limit access to financial products and affect people’s financial well-being. The study introduces the idea of compound algorithmic vulnerability to describe this accumulation of disadvantage. Using a Transformative Service perspective, it highlights the need for better system design, oversight, and accountability so AI supports fairness, inclusion, and improved outcomes for all users.

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