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[ARTICLE · art-58318] src=arxiv.org ↗ pub= topic=artificial-intelligence verified=true sentiment=· neutral

Neutralizing Structural Inequality in the Nigerian FinTech Sector

Researchers introduced a hierarchical human-AI triage model for fraud detection in Nigeria's FinTech sector that reduced regional performance gaps from 19.43 to 2.88 percentage points, neutralizing structural bias against rural accounts. The model achieved a 24.79% gain in fraud recall over autonomous baselines by routing uncertain transactions to human analysts while using a dynamic shadow price to manage human attention.

read1 min views1 publishedJul 14, 2026

arXiv:2607.10317v1 Announce Type: new Abstract: 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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