Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
Fair Credit Decision Assurance: An Ethical Governance Framework For AI-Based Credit Scoring in Bangladesh with Islamic Finance Duties
Sumaia Yasmin Keya, Niger Sultana, Md. Baharul Hasan, Md. Shahed Alamm, Md. Aminul Islam, Ummey Sumaiya
15 October 2026 · Vol. 2, Issue 10, pp. 693-704
DOI: 10.65150/EP-jefrr/V2E10/2026-02
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What is this article about?
Purpose: Machine-learning credit scoring can extend formal credit to people with thin files, but alternative data can also turn social disadvantage into apparently neutral risk scores. This paper develops a governance framework for AI-based credit scoring in Bangladesh and adapts it to the duties of Islamic financial institutions.
Article at a glance
- Published
- 15 October 2026
- Volume / issue / pages
- Vol. 2, Issue 10, pp. 693-704
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
Abstract
Purpose: Machine-learning credit scoring can extend formal credit to people with thin files, but alternative data can also turn social disadvantage into apparently neutral risk scores. This paper develops a governance framework for AI-based credit scoring in Bangladesh and adapts it to the duties of Islamic financial institutions. Design/methodology/approach: The study is a structured integrative review combined with policy and doctrinal analysis. It synthesizes peer-reviewed research on algorithmic lending, fairness and explainability; international benchmarks (the EU AI Act, U.S. adverse action guidance, the NIST AI Risk Management Framework and the OECD AI Principles); Bangladeshi instruments on e-KYC, credit information, digital nano-loans, e-loans and data protection; and Islamic finance sources on maqasid al-Shariah, gharar and Shariah governance. Findings: Bangladesh now permits fully digital small-value lending, yet its current instruments say little about model validation, bias testing, reason-giving or contestation. Predictive accuracy alone is an inadequate standard because a model can improve portfolio performance while concentrating false rejections on women, rural applicants or new-to-credit borrowers. Originality/value: The paper proposes a Fair Credit Decision Assurance (FCDA) model with six gates: lawful data, feature relevance, fairness testing, explanation, human reconsideration and monitoring. A Shariah overlay adds product-level review and treats unexplained adverse decisions as a governance concern related to gharar. Practical implications: The model gives banks, finance companies, mobile financial service providers and Bangladesh Bank a staged route to supervising algorithmic credit without halting innovation.
Keywords: AI credit scoring, algorithmic fairness, explainability, financial inclusion, Islamic finance, maqasid al-Shariah, Bangladesh
Cite this article
Sumaia Yasmin Keya, Niger Sultana, Md. Baharul Hasan, Md. Shahed Alamm, Md. Aminul Islam, & Ummey Sumaiya (2026). Fair Credit Decision Assurance: An Ethical Governance Framework For AI-Based Credit Scoring in Bangladesh with Islamic Finance Duties. Journal of Economic, Finance Research and Review, 2(10), 693-704. https://doi.org/10.65150/EP-jefrr/V2E10/2026-02
@article{Sumaia2026,
title = {Fair Credit Decision Assurance: An Ethical Governance Framework For AI-Based Credit Scoring in Bangladesh with Islamic Finance Duties},
author = {Sumaia Yasmin Keya and Niger Sultana and Md. Baharul Hasan and Md. Shahed Alamm and Md. Aminul Islam and Ummey Sumaiya},
journal = {Journal of Economic, Finance Research and Review},
year = {2026},
volume = {2},
number = {10},
pages = {693-704},
doi = {10.65150/EP-jefrr/V2E10/2026-02},
url = {https://doi.org/10.65150/EP-jefrr/V2E10/2026-02}
}Questions about this article
Who wrote this article?
Sumaia Yasmin Keya, Niger Sultana, Md. Baharul Hasan, Md. Shahed Alamm, Md. Aminul Islam, Ummey Sumaiya.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 2, Issue 10, pages 693-704, published by EP Journals Group on 15 October 2026.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V2E10/2026-02 (https://doi.org/10.65150/EP-jefrr/V2E10/2026-02).
How do I cite this article?
APA: Sumaia Yasmin Keya, Niger Sultana, Md. Baharul Hasan, Md. Shahed Alamm, Md. Aminul Islam, & Ummey Sumaiya (2026). Fair Credit Decision Assurance: An Ethical Governance Framework For AI-Based Credit Scoring in Bangladesh with Islamic Finance Duties. Journal of Economic, Finance Research and Review, 2(10), 693-704. https://doi.org/10.65150/EP-jefrr/V2E10/2026-02
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