America’s Credit Unions Monday sent a survey to member credit unions to gather information on how fintechs and alternative data are used to guide credit underwriting activities. Additionally, the survey seeks to understand how credit unions evaluate the risks and benefits of alternative underwriting.
The CFPB has expressed concerns with the risks artificial intelligence poses to consumers. The bureau issued guidance in September noting that creditors cannot exclusively rely on AI for credit decisions. The CFPB also released a joint statement in April 2023 highlighting federal efforts to limit AI discrimination. America’s Credit Unions wrote to the National Institute of Standards and Technology (NIST) in February noting that credit unions are aware of the risks associated with AI and added that new AI standards and guidelines “should be tailored to avoid excessive burden, competitive imbalance between regulated and unregulated institutions, or the imposition of unreasonable supervisory expectations for credit unions.”
Survey responses are due June 26.
