Digital Ethics and Governance in Financial Information Systems: A Computable Ethical Architecture for AI-Driven Insurance and Mortgage Applications

Financial AI, Insurance analytics, Mortgage systems, FinTech governance, Ethical AI in finance

The increasing trend of utilizing AI-based systems in financial information environments, including insurance underwriting, loan approval, and mortgage approval, demands the need for effective ethical governance. This paper proposes a Governance-Aware Ethical Architecture (GAEA) for financial information environments involving AI-based systems. The framework also incorporates an Ethical Constraint Engine for bias mitigation, a risk scoring system for assessing ethical violations in financial decisions, corrigibility functions for ensuring safe human intervention in AI decisions, and a multi-level audit system for supporting transparency and compliance. Continuous monitoring is also enabled through reinforcement learning from human feedback and formal constraints using linear temporal logic. The framework’s performance is also validated through experiments that demonstrate an ethical compliance rate of 87.3%, an alignment robustness value of 0.92 for Cohen’s κ, and an efficiency value of 94.1% for corrigibility.