A Systematic Approach to Auditing and Mitigating Demographic Bias in Algorithmic Lending Models

Algorithmic credit-scoring and lending models, increasingly used to automate loan approval decisions, risk encoding and amplifying historical demographic biases present in training data, potentially resulting in systematically unfair outcomes for protected groups. This project develops a systematic auditing framework to detect demographic bias in algorithmic lending models across multiple fairness metrics, coupled with mitigation techniques applied at the pre-processing, in-processing, and post-processing stages, to produce lending models that are both predictive and demonstrably more equitable.

Authors

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-08-20
DOI
https://doi.org/10.5281/zenodo.22022839
Primary Topic
Financial Distress and Bankruptcy Prediction
Type
preprint
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preprint

A Systematic Approach to Auditing and Mitigating Demographic Bias in Algorithmic Lending Models

Adishree Gupta
Zenodo (CERN European Organization for Nuclear Research)
Financial Distress and Bankruptcy Prediction
preprint

A Systematic Approach to Auditing and Mitigating Demographic Bias in Algorithmic Lending Models

Adishree Gupta
preprint en

Abstract

Algorithmic credit-scoring and lending models, increasingly used to automate loan approval decisions, risk encoding and amplifying historical demographic biases present in training data, potentially resulting in systematically unfair outcomes for protected groups. This project develops a systematic auditing framework to detect demographic bias in algorithmic lending models across multiple fairness metrics, coupled with mitigation techniques applied at the pre-processing, in-processing, and post-processing stages, to produce lending models that are both predictive and demonstrably more equitable.

Zenodo (CERN European Organization for Nuclear Research)
Financial Distress and Bankruptcy Prediction
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A Systematic Approach to Auditing and Mitigating Demographic Bias in Algorithmic Lending Models — Adishree Gupta · Zenodo (CERN European Organization for Nuclear Research) (2026) | TGRS Research Map | TGRS