The approach
The bank has stressed to you how important it is that there’s fairness embedded in your methods because the regulators and the public at large want assurance that banks will not cause any more harm. Their reputation depends on it too, because in recent months, the media has been relentless in blaming them for dishonest and predatory lending practices, causing distrust in consumers. For this reason, they want to use state-of-the-art robustness testing to demonstrate that the prescribed policies will alleviate the problem. Your proposed approach includes the following points:
- Younger lenders have been reported to be more prone to defaulting on repayment, so you expect to find age bias, but you will also look for bias with other protected groups such as gender.
- Once you have detected bias, you can mitigate bias with preprocessing, in-processing, and post-processing algorithms using the AI Fairness 360 (AIF360) library. In this process, you will train...
