# Why Talking about ethics is not enough: a proposal for Fintech's AI ethics

**Authors:** Cristina Godoy Bernardo de Oliveira, Evandro Eduardo Seron Ruiz  
**arXiv:** [2102.07213](https://arxiv.org/abs/2102.07213)  
**Date:** 2021-02-14  
**Summary page:** https://www.summarizepaper.com/en/paper/2102.07213v1/

## Key points

- The financial sector is being transformed by AI and Fintech
- Smart Fintech combines classic AI, modern AI, DS areas, and other technologies
- Longbing Cao identified 19 different Fintech business areas with economic-financial services being one of them
- Managing human and social complexities is a challenge for smart FinTech in this area
- Fintech is a significant strategy for banks and start-ups to adapt to technological changes in society
- AI presents an opportunity for modifying the financial industry and increasing revenue
- Data plays a crucial role in providing solutions to FSIs for improving their services and creating new products
- Big data analytics, artificial intelligence (robot advisors, credit score, credit risk), and blockchain technology are used by Fintech to meet the high demand for new products, solutions, and services.
- Security problems and lack of confidence in the data used are two significant challenges faced by Fintech
- Building trust between users and Fintech is essential for activities to expand further while offering new services.
- Ethical issues become more latent as potential applications of AI in the financial sector increase.
- Recommendations & Ethics Guidelines should be prepared so that companies can choose appropriate principles & ethical values.

## Summary

The financial sector is undergoing a transformation with the advent of Artificial Intelligence (AI) and Fintech. The combination of classic AI areas, modern AI and DS areas, and other technologies has given rise to Smart Fintech. Longbing Cao identified 19 different Fintech business areas, with economic-financial services being one of them. However, there are several challenges that need to be addressed by smart FinTech in this area. One such challenge is managing human and social complexities through AIDS techniques for effective communication, cooperation, and collaboration within departments and between stakeholders. Fintech represents a significant strategy for banks and start-ups to adapt to technological changes in society. It is not just restricted to e-banking or consumer digitalization but also focuses on strengthening relations between users and banking services. AI presents an opportunity for modifying the financial industry and increasing revenue. Data plays a crucial role in providing solutions to Financial Service Institutions (FSIs) for improving their services and creating new products. Rapid data analysis and proper information management are essential for developing new services for FSIs. Big data analytics, artificial intelligence (robot advisors, credit score, credit risk), and blockchain technology are used by Fintech to meet the high demand for new products, solutions, and services. However, Fintech faces two significant challenges: security problems and lack of confidence in the data used. Building trust between users and Fintech is essential for activities to expand further while offering new services. As potential applications of AI in the financial sector increase, ethical issues become more latent. The distrust of individuals, social groups, governments about risks arising from Fintech's activities is growing. Therefore it's important that recommendations & Ethics Guidelines be prepared so that companies can choose appropriate principles & ethical values. This exploratory research aims at analyzing the benefits of applying stakeholder theory & Social License ideas to build an environment of trust & realization of ethical principles by Fintech.