Apple’s credit card, the Apple Card, is managed by Goldman Sachs. Recently, there have been claims suggesting that the card’s approval process may be sexist. These allegations have sparked significant controversy and debate over the fairness and transparency of the credit card’s algorithm.
The original allegation was posted on Twitter by David Heinemeier Hansson. You can see his tweet below. It has now been revealed that this issue is being investigated by the New York Department of Financial Services.
The @AppleCard is such a fucking sexist program. My wife and I filed joint tax returns, live in a community-property state, and have been married for a long time. Yet Apple’s black box algorithm thinks I deserve 20x the credit limit she does. No appeals work.
— DHH (@dhh) November 7, 2019
Goldman Sachs’ Response
Goldman Sachs has officially responded to these claims, stating that credit applications are evaluated on an individual basis. They emphasized that factors such as income, credit score, and personal financial history are considered independently for each applicant. You can see their response below.
We wanted to address some recent questions regarding the #AppleCard credit decision process. pic.twitter.com/TNZJTUZv36
— GS Bank Support (@gsbanksupport) November 11, 2019
Broader Implications and Ongoing Investigation
The allegations have raised broader questions about the use of algorithms in financial services. Algorithms are often seen as impartial, but they can inadvertently perpetuate existing biases if not carefully designed and monitored. This incident highlights the need for greater transparency in how these algorithms are developed and used.
The New York Department of Financial Services has launched an investigation to determine whether the Apple Card’s algorithm discriminates against women. This investigation will examine the criteria used by the algorithm and whether it unfairly disadvantages certain groups. The outcome of this investigation could have significant implications for the use of algorithms in credit decisions and other areas of financial services.
As of now, there has been no official word from Apple on this matter. It will be interesting to see how Apple addresses these concerns and whether they will make any changes to the Apple Card’s approval process. The tech giant’s response could set a precedent for how other companies handle similar issues in the future.
The Importance of Fair Credit Practices
This controversy underscores the importance of fair credit practices and the need for financial institutions to ensure that their processes are free from bias. Credit decisions can have a profound impact on individuals’ financial lives, affecting their ability to buy homes, start businesses, and achieve other financial goals. Ensuring that these decisions are made fairly is crucial for promoting financial inclusion and equality.
The allegations against the Apple Card have sparked an important conversation about the role of algorithms in financial services and the need for transparency and fairness in credit decisions. As the investigation by the New York Department of Financial Services continues, it will be important to monitor how this issue is resolved and what steps are taken to address any potential biases in the system.
Source Wccftech
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