When applying for a loan, every customer counts on obtaining a positive bank decision. It happens that we get a refusal. We do not always know what the reason is due to the introduced Act on GDPR.
However, if the decision prepared by artificial intelligence is signed by a person, the applicant will not know why he will not get a loan. Sounds absurd?
The provisions on the GDPR were intended to simplify the process of granting loans and testing creditworthiness. In practice, this did not happen. Not so long ago, in the Sejm, there was a discussion about changes in the provisions implementing the GDPR. They would serve to adapt the current arrangements to the requirements of the regulation. This would entail the introduction of amendments also regarding banking law.
For the most part, customers who have not been granted a loan would like to know the reason for such a decision to avoid refusal in the future. The provisions on the GDPR were to be somewhat a guarantee that this would be the case. However, in the light of regulations, the customer can find out the reason only if the credit decision is taken automatically.
The Bank uses data on the amount of our earnings and obligations, marital status or the number of dependent children. In fact, it is a special algorithm that processes and analyzes the data on the basis of which the bank makes decisions. Both experts, social activists and deputies were in favor of changing the draft provisions implementing the GDPR so that clients could obtain information on the refusal decision. Despite this, the government did not agree to change the shape of the project.
The authorities also do not want to modify the closed data catalog that banks could consider when assessing creditworthiness. This will work against customers. If the borrower wants to obtain funds for the treatment from the loan, the bank will not be able to request the submission of medical examinations.
According to them, a much better solution is, for example, to indicate a direct source of information.
It is true that when granting a loan, the bank is guided by risk analysis, checking the customer’s creditworthiness and even current expenses.
For the borrower, however, knowing the reason for not granting a loan is very important. Let’s hope that the proposal to amend the bill will be taken into account and the client will be able to demand explanations from the bank.