IDEAS home Printed from https://ideas.repec.org/a/vls/rojfme/v12y2024i1p188-194.html
   My bibliography  Save this article

The Ethical And Social Implications Of Artificial Intelligence In Financial Inclusion

Author

Listed:
  • CIUMARA, Tudor

    (Centre for Financial and Monetary Research “Victor Slavescu”, N.I.E.R., Romanian Academy, Bucharest, Romania)

Abstract

Artificial Intelligence (AI) is transforming the financial sector by enhancing risk assessment, automating decision-making, and expanding access to financial services. While AI holds promise for improving financial inclusion, it also raises significant ethical and social challenges. Based on a theoretical approach, this paper examines key concerns such as algorithmic bias, data privacy risks, lack of transparency, digital inequalities, and job displacement, which can inadvertently reinforce financial exclusion rather than reduce it. Additionally, it explores potential solutions, including regulatory frameworks, explainable AI (XAI), enhanced data protection, digital literacy programs, and workforce reskilling initiatives. Responsible AI implementation, guided by regulatory oversight and ethical design principles, can foster an inclusive and sustainable financial ecosystem. The study highlights the need for stronger regulations, public-private partnerships, and international cooperation to ensure that AI-driven financial services benefit all socio-economic groups equitably.

Suggested Citation

  • CIUMARA, Tudor, 2024. "The Ethical And Social Implications Of Artificial Intelligence In Financial Inclusion," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 12(1), pages 188-194, October.
    • Handle: RePEc:vls:rojfme:v:12:y:2024:i:1:p:188-194
    as

    Download full text from publisher

    File URL: http://www.icfm.ro/RePEc/vls/vls_pdf_jfme/vol12i1p188-194.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    financial inclusion; AI ethics; algorithmic bias; data privacy; AI transparency;
    All these keywords.

    JEL classification:

    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vls:rojfme:v:12:y:2024:i:1:p:188-194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniel Mateescu (email available below). General contact details of provider: https://edirc.repec.org/data/cfiarro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.