Could Fintech Startups Be LESS Ethical Than Banks?

Edit… I’ve borrowed one of the subheaders from further down the article

I think this example might crossover into the discussion regarding Freezing accounts

  1. Does automation reduce the ethical awareness and responsibility of financial professionals?** According to Scott, “It is plausible that as decision-making processes are increasingly automated, [providers] may feel increasingly less responsible for the decisions, or perhaps will not even be aware of the decisions.”

Are we talking about the same ethical banks that were on of the main causes of the financial collapse?

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There’s a wide range if banks discussed in the article

Interestingly it references a Guardian article about Monzo being a very ethical bank. I think there is something to be said about the automation in fintech making the provider feel less responsibility for the outcome. I also think although it’s not me times and that bit could very well lead on from the discussion about the watchdog program.

It’s ok clearly no one wants to discuss the thread, I can only guess one or two bits cut a bit close to home but it’s an interesting article nonetheless

It’s just such a poorly written article :cold_sweat:

How ethical a Fintech is comes from the top down and the culture of the company

This kind of implies that automation happens and has no input from people. If the ethics of the company come from top down then all processes will be designed with those in mind

So no, Fintech isn’t ethical by default, but regulation has allowed more ethical people into the sector


I completely agree, but I also think that’s how people start out when they start companies but you only have to look at FaceBook to see how wrong that can go.

automation plays a big part in banking but I don’t think Fintech has enough historical data to necessarily know and identify things like fraud with the same degree of accuracy and therefore the human aspect becomes all the more important

I sort-of agree here, but would add that Fintech is built on new technology which helps accelerate accuracy and therefore resolution. Monzo’s in-house payment processor & fraud team - they provide very quick recognition, action and protection with dubious trends. The Ticketmaster breach anyone? Fraud comes in many formats and I really don’t envy - but completely respect - the people who provide constant monitoring needed to protect the public (not just Monzo here - across the board in general)

Did I feel comfortable with legacy banks over the years? - I trusted them to keep my interests safe with minimal interaction and with no customer-facing features at all. So a yes from me.
Do I feel comfortable with Monzo at this point? Yes, I do. More than anyone else.
Do I feel comfortable with FB at any point? Absolutely not.


I pretty much agree with what you’ve written. My trust issue with Monzo and why I don’t keep very much money in my Monzo account is not their lack of ability to detect fraud but more the stories you read on this forum about how slow customer service is to respond when you do encounter a problem.
When I encounter an issue I don’t want to be waiting in a live chat queue for hours (sometimes days if I believe what I read here) but I want to be on the phone with someone getting the situation resolved.

To bring this back to the Ethics question I started with, do I think Monzo are trying to be an ethical bank? Yes I do.
Do I think their drive to make money is more important to them than being ethical… Yes I do. I would however caveat that I would apply that same comment to Revolut

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