small banks tended to discriminate against black business owners when applying for COVID loans, and the discrimination is *decreased* by replacing human judgment with automated systems

@hierarchon, reading through this and I'm glad that they describe how most of the bigger banks with a presence in large black communities did make themselves un-attractive as lenders because of their past treatment of loan applicants.

I haven't finished reading through the paper, but I wonder if they take into account the standing notion a lot of Asian and Hispanic businesses have that applying for these things draws government attention for closer scrutiny.

@hierarchon, so that in effect, there's a big self-selection bias going on where the minority applicants who apply for a process like this either have someone knowledgeable to help them (my mom's PPP experience) or know they have their financials in order and will easily secure this loan.

They acknowledge some of this in the introduction, but they treat it as a levelling factor.

@hierarchon, the comment about how traditional lenders will use high-tech tools like Google Maps to see what side of the red-lines a business falls on is grimly funny.

A FinTech Jasper might not know to check which side of Troost your business sits on. :P

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inherently digital

a very robotic single-user instance