In this episode, Jerry Buckley and Caroline Stapleton welcome guest Melissa Koide, CEO of FinRegLab. Melissa discusses her organization’s work in evaluating the explainability of complex machine learning algorithms in credit underwriting, model governance and adverse action notices. The conversation covers the CFPB’s recent guidance on credit denial by lenders using artificial intelligence as well as the role explainability plays in promoting fairness and inclusion in lending, methods and tools emerging for lenders to explain credit-related decisions based on AI models, and the ongoing work required to adapt to the digital economy and evolving regulatory landscape. Links:

• FinRegLab Website
• FinRegLab Report: “Explainability and Fairness in Machine Learning for Credit Underwriting”
• “BankThink: AI could make underwriting a collaboration between bank and borrower” by Jerry Buckley (American Banker)
• Orrick Financial & Fintech Advisory Practice
• RegFiPodcast.com