New York S08115 regulates the use of automated lending decision-making tools by banks, requiring transparency and consent from loan applicants.

New York S08115 amends the banking law to address the use of automated lending decision-making tools by banks. The bill mandates that banks using such tools must conduct annual impact assessments to evaluate potential risks, including discrimination and cybersecurity vulnerabilities. Banks must also notify loan applicants about the use of these tools, the criteria they use, and the data collected. Applicants have the right to consent to or opt out of the use of these tools.

New York S08115 regulates the use of automated lending decision-making tools by banks, requiring transparency and consent from loan applicants.

New York S08115 amends the banking law to address the use of automated lending decision-making tools by banks. The bill mandates that banks using such tools must conduct annual impact assessments to evaluate potential risks, including discrimination and cybersecurity vulnerabilities. Banks must also notify loan applicants about the use of these tools, the criteria they use, and the data collected. Applicants have the right to consent to or opt out of the use of these tools.