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8 J. Int'l & Comp. L. 405 (2021)
(Dis)Creating Claims of Financial Inclusion: The Integration of Artificial Intelligence in Consumer Credit Markets in the United States and Kenya

handle is hein.journals/jintcl8 and id is 409 raw text is: (DIS)CREDITING CLAIMS OF FINANCIAL
INCLUSION: THE INTEGRATION OF ARTIFICIAL
INTELLIGENCE IN CONSUMER CREDIT MARKETS
IN THE UNITED STATES AND KENYA
Farah Qureshi*, Stephen C Rea** and Kristin N Johnson***
Abstract: In recent decades, afinancial inclusion assemblage led by international
development agencies, private foundations, industry, regulators, governments
and academia has invested in developing initiatives to expand global participation
in the formal financial sector. Increasingly, financial technology (fintech) firms
promise that their platforms provide the most expeditious path to democratic
access to financial markets and, consequently, digital financial inclusion.
This article discusses artificial intelligence tools integrated into consumer
mobile payment platforms that facilitate micro-lending in Kenya and
alternative lending in the United States. Proponents suggest that these
digital platforms are more efficient and engender less bias than conventional
approaches. Evidence increasingly demonstrates, however, that these
technologies may not be neutral and may, in fact, replicate or amplify bias.
In this article, we examine the myths and misperceptions offinancial inclusion
and the limitations of the fractured regulatory environment in many countries
integrating fintech in underbanked communities. We explore how financial
inclusion may not only create channels for prosperity and improvement but
also engineer debilitating and sometimes precarious financial circumstances for
users. Regulators have taken steps towards addressing concerns, but consumer
protection requires greater focus to create lasting and significant welfare
reforms. Arguably, the solution may not be a specific regulatory action, but
rather reforms aimed to address the underlying causes of financial exclusion.
Keywords: financial inclusion; fintech; credit scoring; machine learning;
artificial intelligence; mobile money; payment systems; financial regulation;
credit; lending
* Farah Qureshi is a PhD candidate in the Department of Anthropology at University of California, Irvine.
Her research explores financial technology cultures, national inclusion concepts and history of diverse
financial systems in Kenya. Department of Anthropology, 3151 Social Sciences Plaza, Irvine, CA
92697. farahq@uci.edu.
** Dr. Stephen C Rea is an adjunct faculty at Colorado School of Mines. A cultural anthropologist, his
research focuses on digital culture. University Honors and Scholars Program, 1704 Illinois St., Colo-
rado School of Mines, Golden, CO 80401. srea@mines.edu.
*** Kristin Johnson is the Asa Griggs Candler professor of law and senior associate dean designate at Emory
University School of Law. She is an elected member of the American Law Institute, an ABA Fellow and
chair-elect of the Securities Regulation Section of the American Association of Law Schools. Her research
focuses on systemic risk, risk management, corporate governance, cyber risk regulation and innovative
technologies, including distributed digital ledger and artificial intelligence technologies in financial mar-
kets. Emory Law School, 1301 Clifton Rd. NE, Atlanta, GA 30322. Kristin.Johnson@emory.edu.
[(2021) 8:2 JICL 405-434]

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