New York A00773 allows banks to use automated lending decision-making tools but requires consent from loan applicants.

New York A00773 amends the banking law to regulate the use of automated lending decision-making tools by banks. It mandates that banks inform loan applicants if such tools are used in the assessment process. Applicants can consent to or opt out of this use. Banks must also conduct annual impact assessments of these tools, focusing on accuracy, fairness, bias, discrimination, cybersecurity, privacy, and data usage. If an assessment reveals discriminatory outcomes, the bank must report this to the relevant authorities and cease using the tool.

New York A00773 allows banks to use automated lending decision-making tools but requires consent from loan applicants.

New York A00773 amends the banking law to regulate the use of automated lending decision-making tools by banks. It mandates that banks inform loan applicants if such tools are used in the assessment process. Applicants can consent to or opt out of this use. Banks must also conduct annual impact assessments of these tools, focusing on accuracy, fairness, bias, discrimination, cybersecurity, privacy, and data usage. If an assessment reveals discriminatory outcomes, the bank must report this to the relevant authorities and cease using the tool.