Data analytics in finance and mortgage: A catalyst for addressing inequities faced by under-reserved populations in the USA

Abstract

This comprehensive paper delves into the role of data analytics in finance and mortgage sectors, particularly its potential to alleviate the disparities faced by under-reserved communities in the USA. Through an exploration of the current landscape, challenges, opportunities, and case studies, this paper seeks to shed light on the transformative power of data analytics in fostering financial inclusion and reducing disparities in access to mortgage and financial services. It encapsulates the essence of a critical exploration into the convergence of data analytics, finance, and social equity within the American context. In a nation where financial disparities persistently burden under-reserved communities, the integration of data analytics emerges as a transformative force, promising insights and solutions to mitigate these entrenched inequities. It navigates through the historical underpinnings and systemic obstacles that have perpetuated disparities, shedding light on discriminatory practices such as redlining and limited access to credit. By contextualizing the challenges faced by marginalized populations, the paper sets a firm foundation for understanding the urgency of leveraging data analytics as a catalyst for change. Moreover, the paper critically examines the ethical dimensions and regulatory imperatives surrounding data analytics in finance and mortgage sectors. It navigates through the intricate terrain of bias mitigation, fairness promotion, and regulatory compliance, emphasizing the imperative of ethical decision-making and consumer protection. In its culmination, the paper offers a visionary outlook, delineating future directions, emerging trends, and actionable recommendations to harness the full potential of data analytics in fostering financial inclusion and addressing inequities. By catalyzing dialogue, innovation, and collaborative action, this paper underscores the imperative of leveraging technology for social good and advancing inclusive economic growth in the United States.