Following news of the probe into Apple Card’s credit worthiness algorithm after sexism claims, University of Edinburgh Business School reveals that including gender in credit scoring models improves women’s chances of being granted credit.
79,386 customers that were issued a car loan from a major European bank between 2003 and 2009 across four different credit scoring models were analysed, resulting in gender being determined as a statistically significant variable.
However, research from the University of Edinburgh finds that when gender is left out of the credit scoring model equation, the outcomes are not equal for men and women and in addition to this, has a negative effect on women.
Gender is prohibited in decision making in most developed countries. In the EU, the European Equal Treatment in Goods and Services Directive ensures that certain protected characteristics such as gender are not considered as a variable.