Key Points

• r 1. Inflexibility in Decision-Making: The hard-coded nature of automated logic in financial decisions can lead to inflexibility and stagnation, making it challenging for institutions to adapt to changing market conditions or customer needs.r 2. Bias and Discrimination: The use of hardcoded logic can also introduce biases and discriminatory practices, perpetuating existing social inequalities and hindering fair lending practices.r 3. Security and Vulnerability: Outdated or vulnerable automated systems can pose significant security risks, compromising sensitive customer data and opening up institutions to cyber attacks.100-word Summaryr Automated logic in financial decisions, such as credit line approvals, is often entrenched and difficult to modify. This inflexibility can hinder institutions' ability to respond to changing market conditions or customer needs. Furthermore, hardcoded logic can introduce biases and discriminatory practices, perpetuating social inequalities. Moreover, outdated systems pose significant security risks, compromising sensitive data and opening up institutions to cyber attacks. Addressing these concerns requires a proactive approach to reviewing and updating automated systems, ensuring they are secure, fair, and adaptable to evolving market conditions and customer needs. Regular assessments can help mitigate these risks.