financial-inclusion

Chapter 8 of 'Weapons of Math Destruction' provides an extensive bibliography and references related to credit scoring, data brokerage, and the financial industry's use of algorithms. It highlights the pervasive influence of credit scores like FICO on consumer access to credit and employment, the racial wealth gap exacerbated by these systems, and the rise and challenges of alternative lending platforms such as peer-to-peer lending. The chapter also touches on the risks of algorithmic bias, data inaccuracies, and the opaque nature of data-driven decision-making in finance.

This chapter outlines Facebook's attempt to create Libra, a global digital currency intended to revolutionize finance and provide financial inclusion, but which was fundamentally flawed and alarmed governments worldwide. The plan was marked by vague details, regulatory concerns, and the potential to disrupt global economies, ultimately leading to its rejection by regulators and the shelving of the original Libra concept. The chapter also frames Libra as emblematic of Silicon Valley's disruptive ethos, highlighting the clash between tech ambition and governmental control.

The chapter critiques Facebook's Libra project for its vague and technologically reductionist approach to 'banking the unbanked,' highlighting the complexity of financial inclusion as a social and local process rather than a mere technical problem. It contrasts Libra's blockchain-based solution with successful grassroots models like Kenya's M-Pesa, emphasizing the necessity of understanding local conditions, privacy concerns, and regulatory realities. The chapter argues that Libra's plan lacked concrete strategies and failed to address the real barriers faced by unbanked populations in both developing and developed countries.