Neutralizing Structural Inequality in the Nigerian FinTech Sector
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Abstract (arXiv)
Algorithmic decision systems in financial services often rely on data proxies that inadvertently encode structural inequalities. This paper introduces a hierarchical human-AI triage model for Point of Sale fraud detection in the Nigerian FinTech sector. Adopting a We Are All Equal worldview, we address the challenge of discrimination laundering, wherein the system misinterprets infrastructure related aleatoric noise such as rural network timeouts as fraudulent intent. We implement a three-tier routing policy utilizing a calibrated ensemble model as a primary filter. The policy routes transactions characterized by epistemic uncertainty such as cold start new accounts to specialist analysts while reserving high stakes cases for a senior supervisor. To manage finite human capacity, we utilize a dynamic shadow price to ration human attention and implement a random audit mechanism to prevent human skill atrophy. Our experimental results demonstrate a statistically significant 1.88% complementarity gap and a 24.79% percentage point gain in fraud recall over an autonomous baseline. Crucially, the model reduces the regional performance gap from 19.43 to 2.88 percentage points, neutralizing structural bias. Hierarchical collaboration provides a robust mechanism for substantive equality of opportunity, ensuring that rural accounts are not excluded from the digital economy due to environmental brute luck.
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References · 6
- 2017Selective Classification for Deep Neural Networkscited by 799
- 2014Bandits with concave rewards and convex knapsackscited by 83
- 2020A Case for Humans-in-the-Loop: Decisions in the Presence of Erroneous Algorithmic Scorescited by 74
- 2021Differentiable Learning Under Triagecited by 74
- 2025Documenting Deployment with Fabric: A Repository of Real-World AI Governancecited by 2
- 2026Human Tool: An MCP-Style Framework for Human-Agent Collaborationcited by 2
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