Traditional lenders are upping their use of machines to decide who gets how much credit as part of a strategy to reduce costs and boost loan applications. Meanwhile, technology companies are moving in on the financial services industry’s turf, with businesses such as Amazon, Apple, Facebook and Google offering loans and payment options.
…A series of posts from David Heinemeier Hansson starting Thursday railed against the Apple Card for giving him 20 times the credit limit that his wife got. The tweets, many of which contain profanity, immediately gained traction online, even attracting comment from Apple co-founder Steve Wozniak.
Hansson didn’t disclose any specific income-related information for either of them but said they filed joint tax returns and that his wife has a better credit score than he does.
…“Goldman and Apple are delegating credit assessment to a black box,” Hansson said. “It’s not a gender-discrimination intent but it is a gender-discrimination outcome.”
…Traditional lenders are upping their use of machines to decide who gets how much credit as part of a strategy to reduce costs and boost loan applications.
…This is the second such action from the regulator in recent weeks. NY DFS opened a probe against health care giant UnitedHealth Group Inc. after a study found an algorithm favored white patients over black patients.