Standard Chartered partners with Truera to tackle unjust bias in AI-supported decision making

Maria Nikolova

Standard Chartered presented a challenge to the Truera team, to help create a solution that gives greater insight into the machine learning decision making process.

Standard Chartered has collaborated with US-based startup Truera, to use its model intelligence platform to improve model quality and increase trust by analysing models and helping to identify and eliminate unjust biases in the decision-making process.

Machine learning, which makes it quicker and easier to analyse large amounts of data and identify patterns and trends, leads to better performance and risk management when used correctly. However, because machine learning models are built using complex automated algorithms, they can act like a black box where it is often challenging for data scientists to explain in detail how decisions are made, and validation of a model’s effectiveness can take longer.

Mindful to ensure that data is used ethically, and with a vision to scale up their use of machine learning for core credit decisioning across multiple markets, Standard Chartered presented a challenge to the Truera team, to help create a solution that gives greater insight into the machine learning decision making process, including being able to identify, and therefore mitigate, unjust bias.

Truera collaborated closely with the Bank’s retail analytics, risk, digital and technology teams on a pilot that focused on one of the Bank’s challenger credit decisioning algorithms which uses a combination of traditional data, and with clients’ consent, alternative data.

A solution that has been developed works across multiple machine learning platforms and is able to pinpoint the specific variables that influence risk scoring. It also has the ability to look for correlations between seemingly impartial variables that can act as proxies for demographic indicators such as race or gender, which could lead to the introduction of unjust bias resulting in unfair decisions.

The Bank will now work with Truera to further develop the software and explore its application across a range of AI use cases.

Vishu Ramachandran, Group Head, Retail Banking, Standard Chartered, said: “Ensuring transparency and explainability in AI-based decision making is not just a competitive advantage for us, but also the right thing to do by our clients. Our partnership with Truera will help us better explain and justify our models, support us in building a stronger and more sustainable business as well as give confidence to both customers and regulators in the fairness of our data-driven processes and outcomes”.

Read this next

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX

Public.com goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales. 

<