Fairness in Finances and how technology solves it

Finances are not necessarily considered as the most moral of things in the world. It’s likely that the majority of the population thinks that they are being cheated when using financial services, be they online or offline.

Unfortunately, this feeling of being cheated has turned out to be correct on more than one occasion, and that is due to crippling bureaucracy and shady tactics to prioritize profits over customer satisfaction.

Numerous people have lost their jobs in the past as the hammer went down on them for making a mistake in the operations process, but many other companies that have wronged their customers are still at large.

Because of this, multiple developers and product owners have been working on creating a framework that would help guarantee fairness in the financial world. Yes, the laws created by the government simply weren’t enough to prevent the fact from happening.

Background feedback

Although it may seem weird, quite a lot of bank databases are based on random-number-generation (RNG) as well as unique keys that are unchangeable. For example, a person’s login information would be a unique key, while bank promotions would usually use random number generators, while other things such as exchange rates, commissions and etc would be “changeable numbers).

What’s even weirder is that quite a lot of banks have used a framework that’s mostly used in online gaming platforms. This framework is generally directed to a random number generation but gets the job done with other tasks as well.

One of the primary ways to describe how this background feedback works is to look at the provably fair explanation, which is a software that uses the exact same pattern.

However, Provably is based on the blockchain, but it doesn’t mean that it can be mimicked through other technological methods.

For example, imagine that the bank recently started a promotion that every transaction has the opportunity to have a cashback. This would be based on a random-number-generator. A specific number would have the feature of giving the cashback but would be hidden from users in most cases.

What software like provably do is open the code and the process to the general public, meaning that anybody can check the algorithm and the process it takes to generate a number and make sure of it themselves.

Although it takes a lot more time and skills to figure this out, it’s quite helpful when it comes to doing background checks on financial companies.

Bottom-up strategy

Not every country has the resources to implement advanced software on all of its financial platforms. Or they simply don’t want to spend the money. Therefore, several governments have created an extremely strict bottom-up strategy.

Basically what happens is that no matter what kind of mistake is made in the operations department of a bank or any other financial service, the legally responsible person will always be the one in charge.

What this means is that should a bank or credit company owner consider doing something shady, he or she will have to think twice before executing their plan. No matter the mistake, it will be up to him or her to answer in front of a jury.

Although it sounds quite drastic and irrational, it needs to be said that the law has lowered financial crime significantly in areas they’ve been added. However, it’s unlikely for them to last too long.

It’s not that hard

The main “secret” about financial fairness is the right to knowledge that most customers have. Every citizen of a democratic nation can request an official audit from the government if they have a clear basis to believe they’ve been cheated by a service provider.

It may take quite a lot of time to process, which is why most people go for personal lawyers and battle it out in the courtrooms themselves.

But, in all honesty, it’s pretty obvious that most financial platforms will soon move to the digital background screening methods mentioned above.