Banking Ethics: Changing Dynamics | PAPER II – PRINCIPLES & PRACTICES OF BANKING | MODULE D: ETHICS IN BANKS AND FINANCIAL INSTITUTIONS
Banking Ethics: Changing Dynamics Banking Ethics: Changing Dynamics In the evolving landscape of the banking industry, ethics have become more critical than ever. Technological innovation, digital banking, and data-driven services have introduced new ethical challenges. Banks today must go beyond compliance and embed ethical frameworks in governance, operations, and customer engagement. Ethics and Technology Technology has revolutionized banking through automation, AI, and digital platforms. However, ethical issues such as algorithmic bias, surveillance, digital inclusion, and transparency demand attention. Example: An AI-based credit scoring system may inadvertently discriminate against certain income groups if its training data is biased. Banks must ensure fairness and auditability in their algorithms. Data Security and Privacy With vast amounts of personal data being collected, banks face the ethical obligation to protect customer infor...