AI in Mobile Banking: Ethical Challenges and Opportunities

Abstract

The integration of artificial intelligence in mobile banking represents a significant evolution in the financial industry, transforming service delivery while presenting complex ethical considerations. Mobile banking platforms enhanced by AI technologies offer unprecedented opportunities for financial inclusion, particularly in underserved markets where traditional banking models have proven inefficient. These technologies enable streamlined onboarding, personalized services, and alternative credit assessment methods that expand access to formal financial systems. However, this advancement brings critical ethical challenges including privacy concerns related to extensive data collection, algorithmic biases that may perpetuate discrimination, and transparency issues stemming from complex "black box" decision processes. The geographic variations in implementation and regulatory approaches further complicate the landscape, with notable differences between developed and emerging markets. Successfully navigating these challenges requires comprehensive ethical frameworks that incorporate diverse stakeholder perspectives, explicitly address regional differences, and balance innovation with responsible governance to ensure that AI-powered mobile banking fulfills its potential as a tool for economic empowerment and financial democratization.