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Banks must consider issues such as ethics, trust and transparency when deploying “big data” and advanced analytics, says a new report from the European Banking Authority (EBA).

The EBA paper examined the emergence of tech-driven innovations in the banking business — such as the use of machine learning — which go beyond traditional approaches to gathering business intelligence.

“A data-driven approach is emerging across the banking sector, affecting banks’ business strategies, risks, technology and operations. Corresponding changes in mindset and culture are still in progress,” the paper said.

At this point, most banks are at an early stage in their use of machine learning, the report found.

It suggested that more complex applications will develop to improve accuracy and analytic performance, but that this may raise other concerns.

“Issues such as accountability, ethical aspects and data quality need to be addressed to ensure responsible use of [big data and advanced analytics],” the report said.

In particular, it said that there needs to be work done to ensure that “elements of trust” are built into the development of advanced analytics applications “to ensure the explainability and ethical design of such solutions.”

For instance, it suggested that stricter requirements may be needed for innovations that could affect business continuity or potentially harm consumers.