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Considerations for financial advice firms in making ethical technology choices
Making ethical technology choices is more crucial than ever due to the rapid pace of technological advancement and its widespread impact on society. Technology offers greater promise of human empowerment than ever but, like anything that glitters, there's always a flip side to consider.
So, why is it necessary to have ethical considerations in mind in technology procurement and adoption?
Money makes the world go round: Like it or not, we collectively hand power to the organisations whose products and services we buy. In our current iteration of the industrial revolution, I'm not sure we've done the best job we possibly could so far. There's only one time better than yesterday to start making more considered choices, and that's today.
Data privacy and security risks: With more personal and financial data being collected, stored, and analysed, the risk of breaches, misuse, and unethical surveillance is ever-growing. Ethical choices help to ensure user privacy and data protection.
AI and algorithmic bias: AI systems are increasingly being used in decision-making, with growing applications across global financial services, but biased data can lead to unfair outcomes. Ethical tech choices involve transparency, fairness, and accountability in AI.
Misinformation and manipulation: The rise of deepfakes, AI-generated content, and social media algorithms can spread misinformation at an unprecedented scale, influencing elections, financial markets, and public perception.
Environmental impact: The carbon footprint of data centres, blockchain mining, and mass electronics production is significant. Ethical choices involve supporting sustainable tech practices and reducing waste.
Job displacement and workforce ethics: Automation and AI threaten traditional jobs, necessitating responsible implementation that includes honest evaluation of human-best vs AI-best functions and reskilling of employees.
Monopoly and digital inequality: A few major tech companies dominate the market, raising concerns about fair competition and access to digital resources, particularly in emerging economies. The current geopolitical situation and its rats' nest entanglement with information technology puts this in the spotlight.
Regulatory and legal compliance: Governments worldwide are tightening tech-related regulations to protect individuals' personal information and digital footprint data. Ethical choices help ethical businesses to stay ahead of compliance risks, build trust, and out-compete less ethical organisations.
Human rights and ethical use cases: Technologies like facial recognition, predictive policing, and surveillance can infringe on civil rights if misused. Responsible choices help to ensure that technology serves humanity rather than those who would.
In our corner of advicetech, and across financial services, ethical technology choices are particularly important to maintain trust, prevent fraud, and ensure fair access to financial tools. Increasingly, I suspect, companies will face demand from their customers to prioritise ethical decision-making. How, then, might one ensure a structured approach that integrates ethical considerations?
Embed ethics into decision-making: Establish clear ethical principles that guide technology choices (e.g., fairness, transparency, privacy) and consult best-practice frameworks like Responsible AI Principles or the Ethical Tech Compass to guide decisions.
Prioritise data privacy: Follow best practices in data security, such as encryption, anonymisation, and secure storage. When it comes to selecting industry-specific software from local vendors, their proximity and accessibility make it easy to evaluate and design data handling principles aligned with global privacy regulations such as POPIA and GDPR.
Support sustainability in tech: Choose cloud providers and data centres that use renewable energy, reduce electronic waste by opting for modular, repairable hardware, and help minimize unnecessary energy-intensive processes like excessive blockchain mining.
Promote digital inclusion and accessibility: Support technology products and services with accessibility in mind (e.g. WCAG-compliant interfaces) and aim to select providers that bridge the digital divide.
Ensure transparency: Clearly communicate how data is collected, used, and shared. Offer fair terms and conditions with simplified language instead of legal jargon. If AI-driven recommendations or decisions are employed, clearly explain the principles.
Foster a business culture of ethical tech use: Train employees on ethical technology use and responsible AI. Don't let things slide when you see them - encourage whistleblowing mechanisms for unethical technology practices and reward ethical decision-making within the organisation.
Choose ethical vendors and partners: Assess the ethical track record of technology providers before partnering – even a mini due diligence goes a long way. Seek vendors that prioritise security, privacy, sustainability, and fair labour practices. You have every right to demand transparency in AI and data usage from tech providers.
At the heart of ethical technology selection is a simple but powerful truth: the decisions we make today shape the financial services landscape of tomorrow. Every tool we adopt, every vendor we engage with, and every system we implement has a ripple effect—on our businesses, our clients, and the industry as a whole.
As technology continues to evolve, so too must our responsibility in choosing and using it wisely. Let's lead by example, making conscious choices that benefit not just our businesses but the people we serve. Because at the end of the day, ethical technology is good technology—and good technology is good business.
Join the conversation on ethical technology by following us on LinkedIn or visiting our website to explore how we help financial services businesses make smarter, more responsible tech choices: www.linktank.co.za
Contact Details for Linktank:
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Telephone – 087 807 8500
www.linktank.co.za
By Jen McKay Director