Abstract
Digital technologies are a powerful innovative and disruptive factor in finance. They have several dimensions, including an ethical dimension, that call upon the people and organizations that take part in financial activity to take into account the consequences of their actions on others, first of all, their users and customers, but also the stakeholders of the financial or technological organization in question, other organizations, sometimes in distant places, local communities and society in general, including when their decisions are supported, facilitated, or even replaced by programs and machines. This chapter explains the ethical dimension of digital technologies applied to finance and offers ideas for guiding the work of the agents who design or use these technologies so that they can contribute positively to the good of the people and society.
References
Abrardi L, Cambini C, Rondi L (2019) The economics of artificial intelligence: a survey. EUI working paper RSCAS 2019/58. Robert Schuman Centre for Advanced Studies, Florence School of Regulation. https://cadmus.eui.eu/handle/1814/63684. Accessed 10 June 2019
Aldridge I (2019) High-frequency trading: a practical guide to algorithmic strategies and trading systems. Wiley, New York
Anderson M, Anderson SL (2007) Machine ethics: creating an ethical intelligent agent. AI Mag 28(4):15
ArgandoƱa A (1995) The treatment of ethical problems in financial institutions and markets. In: ArgandoƱa A (ed) The ethical dimension of financial institutions and markets. Springer, Berlin, pp 1ā26
ArgandoƱa A (2018) Money and finance: ethical considerations. In: Heath E, Kaldis B, Marcoux A (eds) The Routledge companion to business ethics. Routledge, New York, pp 343ā358
ArgandoƱa A (2019a) Humility and decision-making in companies. In: Wright JC (ed) Humility. Oxford University Press, New York, pp 274ā297
ArgandoƱa A (2019b) Ethics and digital technologies in the home. Paper presented at the experts meeting āthe home in the digital ageā, Home Renaissance Foundation, London, 25ā26 February 2019
Bank for International Settlements (2018a) Sound practices: implications of Fintech developments for banks and bank supervisors. Basel Committee on Banking Supervision, Basel
Bank for International Settlements (2018b) Central Bank digital currencies. Committee on Payments and Market Infrastructures, Basel
Barba Navaretti G, Calzolari G, Franco Pozzolo A (2017) FinTech and banks: friends or foes? Eur Econ 2:9ā30
Barocas S, Selbst AD (2016) Big dataās disparate impact. Calif Law Rev 104:671ā732
Bogroff A, GuĆ©gan D (2019) Artificial intelligence, data, ethics. An holistic approach for risks and regulations. Working paper. Department of Economics, Caā Foscari University of Venice 19/WP/2019. https://ideas.repec.org/p/ven/wpaper/201919.h.ml. Accessed 10 June 2019
Boyd D, Crawford K (2012) Critical questions for big data. Inf Commun Soc 15(5):662ā679
Brunnermeier MK, James J, Landau J-P (2019) The digitalization of money. National Bureau of Economic Research working paper 26300. https://www.nber.org/papers/w26300. Accessed 10 Oct 2019
Burr C, Taddeo M, Floridi L (2019) The ethics of digital well-being: a thematic review. https://www.researchgate.net/publication/331231431_The_Ethics_of_Digital_Well-Being_A_Thematic_Rev.ew. Accessed 15 Mar 2019
Cavoukian A (2009) Privacy by design. The 7 foundationals principles. https://www.ipc.on.ca/wp-content/uploads/Resources/7foundationalprinciples..df. Accessed 15 Oct 2019
Clements R (2019) Regulating Fintech in Canada and the United States: comparison, challenges and opportunities. SPP research paper, vol 12, no 23. The School of Public Policy, University of Calgary. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3304759. Accessed 20 June 2019
Competition Bureau of Canada (2017) Technology-led innovation in the Canadian financial services sector ā a market study, December 2017. Competition Bureau of Canada, Ottawa
Consumers International (2017) Banking on the future. An exploration on Fintech and the consumer interest. Consumers International, London
Consumers International (2019) Artificial intelligence: consumer experiences in new technology. Consumers International, London
dāAcquisto G, Domingo-Ferrer J, Kikiras P, Torra V, de Montjoye Y-A, Bourka A (2015) Privacy by design in big data. An overview of privacy enhancing technologies in the era of big data analytics. European Union Agency for Network and Information Security. https://www.enisa.europa.eu/publications/big-data-protect.on. Accessed 10 June 2019
DāAcunto F, Prabhala N, Rossi A (2019) The promises and pitfalls of robo-advising. Rev Financ Stud 32(5):1983ā2020
Daugherty PR, Wilson HJ (2018) Human + machine: reimagining work in the age of AI. Harvard Business Review Press, Boston
Diamond S, Drury N, Lipp A, Marshall A, Ramamurthy S, Wagle L (2019) Banking on the platform economy. IBM Institute for Business Values. https://www.ibm.com/downloads/cas/8RQVD.RN. Accessed 30 Sept 2019
Dierksmeier C, Seele P (2018) Cryptocurrencies and business ethics. J Bus Ethics 152(1):1ā14
Ekbia H, Mattioli M, Kouper I, Arave G, Ghazinejad A, Bowman T, Suri VR, Tsou A, Weingart S, Sugimoto CR (2015) Big data, bigger dilemmas: a critical review. J Assoc Inf Sci Technol 66(8):1523ā1545
Etzioni A, Etzioni O (2016) AI assisted ethics. Ethics Inf Technol 18:149ā156
Etzioni A, Etzioni O (2017) Incorporating ethics into artificial intelligence. J Ethics 21(4):403ā418
Floridi L (1999) Information ethics: on the philosophical foundation of computer ethics. Ethics Inf Technol 1:37ā56
Floridi L (2014) Smart, autonomous, and social: robots as challenge to human exceptionalism. Robophilosophy 11. http://ebooks.iospress.nl/volumearticle/38531. Accessed 25 June 2019
Floridi L, Sanders JW (2004) On the morality of artificial agents. Mind Mach 14:349ā379
Floridi L, Taddeo M (2016) What is data ethics? Philos Trans R Soc A 374(2083):1ā5
Foley S, Karlsen J, PutninÅ” T (2019) Sex, drugs and bitcoin: how much illegal activity is financed through cryptocurrencies. Rev Financ Stud 32(5):1798ā1853
Hacker P (2018) Teaching fairness to artificial intelligence: existing and novel strategies against algorithmic discrimination under EU law. Common Mark Law Rev 55:1143ā1186
Hagerty A, Rubinov I (2019) Global AI ethics: a review of the social impacts and ethical implications of artificial intelligence. arXiv:1907.07892v1. Accessed 10 Oct 2019
Hartman EM (2008) Socratic questions and Aristotelian answers: a virtue-based approach to business ethics. J Bus Ethics 78(3):313ā328
Hill RK (2015) What an algorithm is. Philos Technol 29(1):35ā59
Iannarone NG (2018) Computer as confidant: digital investment advice and the fiduciary standard. Chicago-Kent Law Rev 93:141ā163
Kranzberg M (1986) Technology and history: Kranzbergās laws. Technol Cult 27(3):544ā560
MacIntyre A (1984) After virtue: a study in moral theory, 2nd edn. Notre Dame University Press, Notre Dame
Markham AN, Tiidenberg K, Herman A (2018) Ethics as methods: doing ethics in the era of big data research ā introduction. Soc Media Soc 4(3):1ā9
Mason RO (1986) Four ethical issues of the information age. MIS Quarterly 10(1):5
Mittelstadt BD, Allo P, Taddeo M, Wachter S, Floridi L (2016) The ethics of algorithms: mapping the debate. Big Data Soc 3(2):1ā21
Morley J, Floridi L, Kinsey L, Elhalal A (2019) From what to how: an overview of AI ethics tools, methods and research to translate principles into practices. https://arxiv.org/abs/1905.06876. Accessed 10 Oct 2019
Noto La Diega G (2018) Against the de-humanization of decision-making. Algorithmic decisions at the crossroads of intellectual property, data protection, and freedom of information. J Intellect Prop Inform Technol Electron Commer Law 9(1):3ā34
Pham A, Castro C (2019) The moral limits of the market: the case of consumer scoring data. Ethics Inf Technol 21:117ā126
Polo L (1995) Ćtica. Hacia una versiĆ³n moderna de los temas clĆ”sicos. AEDOS ā UniĆ³n Editorial, Madrid
Poole D, Mackworth A, Goebel R (1998) Computational intelligence: a logical approach. Oxford University Press, New York
Roessler B (2005) The value of privacy. Polity Press, Cambridge
Russell SJ, Norvig P (2009) Artificial intelligence: a modern approach, 3rd edn. Prentice Hall, Upper Saddle River
Selvadurai J (2013) Legal and ethical responsibilities in mobile payment privacy. Int J Sci Technol Res 2(6):68ā71
Silberg J, Manyika J (2019) Tackling bias in artificial intelligence (and in humans). McKinsey Global Institute. https://www.mckinsey.com/featured-insights/artificial-intelligence/tackling-bias-in-artificial-intelligence-and-in-hum.ns. Accessed 10 Oct 2019
Sloan RH, Warner R (2019) Algorithms and human freedom. Santa Clara High Technol Law J 35(4):1ā34. https://digitalcommons.law.scu.edu/cgi/viewcontent.cgi?article=1644&context=ch.lj. Accessed 20 Sept 2019
Tene O, Polonetsky J (2012) Privacy in the age of big data: a time for big decisions. Stanford Law Rev Online 64:63ā69. https://www.stanfordlawreview.org/online/privacy-paradox-privacy-and-big-data/. Accessed 18 May 2019
Thakor AV (2019) Fintech and banking: what do we know? J Financ Intermed. https://doi.org/10.1016/j.jfi.2019.100833. Accessed 25 Sept 2019
Timmermans J, Ikonen V, Carsten Stahl B, Bozdag E (2010) The ethics of cloud computing. A conceptual review. In: Proceedings of the 2nd IEEE international conference on cloud computing, technology and science, pp 614ā620. https://www.researchgate.net/publication/221276542_The_Ethics_of_Cloud_Computing_A_Conceptual_Rev.ew. Accessed 2 May 2019
Tinn K (2019) Distributed ledger technologies and start-up financing. In: FatĆ”s A (ed) The economics of Fintech and digital currencies. Center for Economic Policy Research, London, pp 15ā20
Turilli M (2007) Ethical protocols design. Ethics Inf Technol 9(1):49ā62
Turilli M, Floridi L (2009) The ethics of information transparency. Ethics Inf Technol 11(2):105ā112
ValleĆ© T, Sedki K, Despres S, Jaulant M, Tabia T, Ugon A (2016) On personalization in IoT. In: 2016 international conference on Computational Science and Computational Intelligence (CSCI), vol 1, pp 186ā191. https://ieeexplore.ieee.org/document/7881335. Accessed 15 May 2019
van den Hoven J (2008) Information technology, privacy, and the protection of personal data. In: van den Hoven J, Weckert J (eds) Information technology and moral philosophy. Cambridge University Press, Cambridge, pp 301ā321
Verbeek PP (2006) Materializing morality. Design ethics and technological mediation. Sci Technol Hum Values 31(3):361ā380
Wing JM (2018) Data for good: FATES, elaborated. Data Science Institute, Columbia University. https://datascience.columbia.edu/FATES-Elabora.ed. Accessed 10 Apr 2019
Zamora J (2019) Managing artificial intelligence within a digital density framework. Working paper WP-1211-E, IESE Business School. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3477217. Accessed 10 Sept 2019
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Section Editor information
Rights and permissions
Copyright information
Ā© 2020 Springer Nature Switzerland AG
About this entry
Cite this entry
ArgandoƱa, A. (2020). Ethics and Digital Innovation in Finance. In: San-Jose, L., Retolaza, J., van Liedekerke, L. (eds) Handbook on Ethics in Finance. International Handbooks in Business Ethics. Springer, Cham. https://doi.org/10.1007/978-3-030-00001-1_9-1
Download citation
DOI: https://doi.org/10.1007/978-3-030-00001-1_9-1
Received:
Accepted:
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-00001-1
Online ISBN: 978-3-030-00001-1
eBook Packages: Springer Reference Religion and PhilosophyReference Module Humanities and Social SciencesReference Module Humanities