Financial leaders want to harness the power of technology to build better approaches to investments and financial planning. But as technology evolves, leaders need to be mindful of how they use it. Relying only on automated processes of algorithms can be risky, and leaders owe it to those with whom they work to be transparent about how they use technology.
Keep reading to learn about five leadership moves that can enhance ethical fintech adoption and build lasting trust among customers.
1. Create an Ethics Charter
Fintech companies need to establish a clear framework for how they use technology. This can come in the form of an ethics charter, which describes a company’s values and behavioral guidelines. This document is not the same as a business plan, which focuses more on financial goals. Rather, an ethics charter can articulate a company’s intent to be transparent, inclusive, and vigilant regarding data use.
Ideally, this document should result from collective input within the organization. Anyone from data engineers to compliance officers can weigh in to ensure that the document is clear. That way, any time a new product is in the works, team members can use the ethics charter as a form of accountability. Product developers might enlist human reviewers, for instance, to add balance and avoid overreliance on tech.
2. Provide Ethics Training
Ethics training can promote leadership development. It can also help ensure that all team members are aligned on how they think about anything from communication to data privacy. Individuals at all levels in the organization should go through this training. With routine workshops, team members will develop ethics awareness and make better decisions each day they go to work.
For fintech team members working in the area of life insurance, showing sensitivity to personal information and decisions is critical. And team members should go above and beyond to assure customers that their information is safe. New tech innovations can help project investment returns or give customers better insights into when to pursue a settlement. But teams need to explain how platforms like Abacus ABL Tech are enhancing life planning and prioritizing ethical design. In short, customers like knowing that tech is offering value and protection all at once.
3. Do Routine Bias Audits
Yes, using algorithms can expedite processes and uncover connections and information that would take much longer to achieve with only human efforts. At the same time, however, tools like credit or pricing models can become biased. After all, they rely on historical data trends that may not be as accurate or inclusive.
Consequently, it’s important to conduct bias audits of fintech systems. Some may misrepresent specific regions or produce biased outcomes based on age or gender. Companies want their products to reach all customers. Checking and adjusting AI models is the best way to ensure fairness.
4. Build Clear Oversight Structures
Any organization benefits from a clear and decisive approach to governance. Companies should set structures to make sure that all products follow the same process for testing and rollout. Individual team members should know their roles in quality control and risk assessment. Ultimately, companies can never be too thorough when it comes to testing for compliance and ethical alignment.
5. Make Trust a Measurable Outcome
Trust is a vital component of a fintech company’s success. As such, trust needs to be a measurable outcome that companies review periodically. Measuring trust can be just as important as measuring revenue and growth.
Leadership teams should evaluate customer satisfaction ratings, for instance, and specifically look at how customers view the company’s transparency. They should seek feedback on customers’ understanding of data use. Further, companies should issue surveys and regularly gather feedback to maintain oversight of ethical practices regarding tech integration.
Balancing Tech Innovations with Transparency
Fintech companies need to be responsible with their use of the latest tech innovations. By establishing an ethics charter, doing audits, and offering regular training, they can earn and maintain their customers’ trust. Fintech companies focused on life planning, in particular, can help customers find financial security through the thoughtful use of tech.
