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I interviewed for a consulting role circa 2019 where the company audited models of finanical companies that used their models to make lending decisions. A larg
by hellojesus 2y ago
I interviewed for a consulting role circa 2019 where the company audited models of finanical companies that used their models to make lending decisions.
A large portion of the interview touched statistical inference as it related to ML, specifically how it related to simple neural nets up to deep learning vs classical modeling. The answer I gave aligned with their expectations, which was that models used in lending should not be black box and should be able to quantify which features led to the prediction/output and how much weight they contributed. This was specifically done to address potential discrimination lawsuits.
I have a hard time believing any company that rents, lends, etc. would employ a black box for decisioning. Both private and public lawyers would sue them into oblivion immediately.
- slt2021 2y agothere is an entire specialty of Model Risk Management, banks have entire departments that oversee models used for decision making and ensure compliance with fair lending laws and other laws https://www.occ.treas.gov/publications-and-resources/publications/comptrollers-handbook/files/model-risk-management/pub-ch-model-risk.pdf https://www.occ.treas.gov/publications-and-resources/publica...
- uoaei 2y agoOne prominent counterexample is that made famous after the UnitedHealthcare CEO was shot and killed, that they employed a decision-making algorithm that apparently rejected 90% of claims with no audit trail or real justification besides cost estimates.
- lotsofpulp 2y agoThat is an unsubstantiated (so far) claim by plaintiffs in an active lawsuit. I would not consider it data for any example yet. https://www.theguardian.com/us-news/2025/jan/25/health-insurers-ai https://www.theguardian.com/us-news/2025/jan/25/health-insur...