Why Talking about ethics is not enough: a proposal for Fintech's AI ethics

Ethics guidelines alone are insufficient: The paper argues that simply creating ethics recommendations and guidelines is not enough to address AI risks in financial technology—implementation mechanisms and stakeholder engagement are necessary to move from principles to practice.

Public distrust is a critical problem: The research identifies growing distrust among individuals, social groups, and governments regarding Fintech AI risks, suggesting that ethical frameworks must actively rebuild trust rather than assume it exists.

Stakeholder participation should be built in from the start: Rather than having ethics imposed after a company is established, the paper proposes that early-stage Fintech companies should participate in developing ethical codes from their inception, ensuring diverse perspectives shape AI governance from the beginning.

A "Social License" model offers practical benefits: The paper recommends establishing Fintech associations that create a dynamic, collectively-developed ethical code—framed as a "Social License"—which can adapt over time and maintain legitimacy with multiple stakeholder groups.

Industry self-regulation requires formal structure: The research suggests that informal ethics discussions need to be formalized through association membership and collaborative code-building to ensure accountability and prevent companies from simply choosing ethical principles that suit their business interests.