Page 48 - Banking Finance April 2025

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build digital trust, it's essential to also apply auditability
standards to qualitative procedures and decisions, such as
customer service practices or algorithmic decision-making.
The documentation and auditing of qualitative processes are
vital to ensure that banks meet their commitments
consistently. By addressing potential challenges in
documenting these processes, banks can enhance
transparency and accountability in their decision-making.

Safety in Banking Strengthening Digital
Trust
Relation to Digital Trust Goals
In the banking sector, safety is essential to maintaining
digital trust. It reflects an organisation's commitment to
upholding social norms, protecting users, and ensuring their
well-being when interacting with financial technologies.
design, information security, incident management, data
Banks must take an inclusive, ethical, and responsible
processor accountability, and training.
approach to safety by thoroughly examining the impact of
safety measures in their operations. For instance,
Fairness Is the safeguard in the best interest of the customer

Fairness involves achieving equitable outcomes for all and their financial rights?
stakeholders. It's linked to ethical technology use. Can all customers access and benefit from the safety
Determining fairness requires balancing various factors. measures?
Banks must identify and mitigate potential biases in
algorithms and decision-making processes, ensuring equal Does the safety mechanism demonstrate the bank's role
opportunity and access to financial services. Regular audits as a steward of customer trust?
and impact assessments can help identify and address By addressing these questions affirmatively, banks show their
fairness concerns. Transparency about how decisions are commitment to protecting users from harm and safeguarding
made and mechanisms for redress are crucial. their rights. This approach promotes digital trust, reassuring
customers that their financial safety is prioritised, and their
Auditability: Relation to Digital Trust interests are being upheld.
Goals Implementation

Inclusive, Ethical, and Responsible Use Nuanced Approach to Harm Mitigation and Safety In the
In the banking sector, comprehensive audits are critical to banking industry, safety is not a one-size-fits-all concept.
assess progress toward ethical goals and commitments. Different banking products, services, and technologies pose
Regular audits allow banks to measure their effectiveness different types of risks. For example, fraud detection
in achieving inclusive, ethical, and responsible use of systems, mobile apps, and digital wallets each present
technology. By making audit results publicly available, banks unique safety challenges. Banks must take a contextual
can demonstrate to customers and stakeholders that they approach to safety, considering factors such as the type of
are upholding their commitments to fairness, equity, and technology, the characteristics of the user, and the context
transparency. in which the technology is used.
Challenges in Building Digital Trust in
Implementation
Banking
Defining the Audit Scope Banks are typically well-versed in
auditing quantitative procedures, such as financial While digital trust is critical, several challenges can impede
transactions and data processing. However, when aiming to its development and maintenance. These include

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