Are algorithms really better than humans at judging your credit score?

May 22, 2018

A man is reflected on the glass as he observes a board showing the Real-U.S. dollar and several foreign currencies exchange rates in Rio de Janeiro, Brazil, September 10, 2015. One thing is clear for Brazil's economy after its credit rating was downgraded to junk: political leaders now have little choice but to push ahead with painful austerity measures if they hope to regain market confidence. Standard & Poor's on Wednesday stripped Brazil of its hard-won investment grade rating, moving sooner than the government and investors had expected. Although investors expected a downgrade at some point, they still sold off Brazilian assets early on Thursday. Stocks suffered modest losses while the currency, the real, fell nearly 3 percent to a 13-year low of 3.9 per dollar. REUTERS/Ricardo Moraes

Could algorithms be the vital factor in receiving approval for a loan? Image: REUTERS/Ricardo Moraes

Rachel O'Dwyer

Research Fellow, Trinity College Dublin

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An old map showing the credit classified neighbourhoods in Atlanta, Georgia in 1935. Image: National Archives Catalog

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