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- Title
Tagungsbericht Konferenz „Opportunities and Risks of Digital Transformation in Finance and Beyond".
- Authors
Beilner, Maximilian; Pinski, Marc; Ray, Jessica; Schmidt, Jan-Hendrik; Sehorz, Jan; Tilk, Philipp
- Abstract
The Journal for Banking Law and Banking Economics published a conference report on the conference "Opportunities and Risks of Digital Transformation in Finance and Beyond". The conference took place at Goethe University Frankfurt and offered an interdisciplinary exchange between academia and practice. The conference focused on the compatibility of technological innovations with a responsible regulatory framework in the financial sector, as well as questions regarding the fairness of credit scoring models and the use of digital footprints for screening borrowers. Experts from various countries presented their research findings and engaged in in-depth discussions. The use of digital footprints can influence consumer behavior. An analysis of mobile phone data from New York City shows that these data contain valuable information that can be used to infer the hardware used and the economic circumstances of the device owners. This information is relevant for credit granting. An investigation of short-term loans on e-commerce platforms in Germany found that digital footprints can improve the accuracy of credit predictions. They can also facilitate access to credit for individuals for whom only few traditionally relevant information is available. However, it is important to consider the impact of using digital footprints on daily life. Regarding the collaboration between humans and AI, it was found that AI advice can increase the accuracy of decision-making processes but reduce human knowledge. Humans also have deficits in their delegation skills and are more selective than AI. There is potential for better collaboration between humans and AI, but it is important to strengthen people's trust in AI and enable interaction. In a field experiment at a German commercial bank, investment decisions of customers who received recommendations from an AI system, a human expert, or a collaboration of human expert and AI were examined. The study confirmed algorithm aversion and showed that the human factor encourages investors to participate in risky investments. The level of risk also influences people's preference for whom they trust: in high-risk situations, they are more inclined towards collaboration between humans and AI. The explanatory approaches for this phenomenon are trust, social desirability, and accountability. In addition, other presentations discussed the explainability and transparency of AI systems, as well as the implementation of explainable AI models in management processes. The panel at the end of the conference addressed government innovations in the field of digital central bank currencies, particularly the ongoing Digital Euro Project of the European Central Bank. The article deals with the necessity of a digital euro and the associated legal issues. It emphasizes that the central bank does not want to create its own ecosystem but must find ways to compete with the private sector and enable coexistence. Data protection and the interests of users play an important role, and a continuous dialogue with lawmakers is sought. The implementation of a digital euro could be based on the competence of the Eurosystem to issue banknotes and promote the smooth functioning of payment systems. However, it is emphasized that a digital euro as a pure means of payment does not fully meet the requirements of creating a functional equivalent to physical banknotes. The conference has shown that an interdisciplinary discourse is necessary.
- Subjects
NEW York (N.Y.); CONSUMER behavior; SCREEN time; DIGITAL footprint; TECHNOLOGICAL innovations; DIGITAL transformation; BANK notes; EUROPEAN Central Bank; COMPUTER literacy
- Publication
Zeitschrift für Bankrecht und Bankwirtschaft, 2022, Vol 34, Issue 6, p388
- ISSN
0936-2800
- Publication type
Article
- DOI
10.15375/zbb-2022-0609