Discrimination against Muslims caused by algorithm use by banks
In 2024, PILP took litigation challenging automated decision making through the use of an algorithm by banks in the Netherlands, resulting in discrimination against people with “exotic” sounding names, whose transactions are frozen. PILP supported three individuals to file a complaint to the Dutch Institute on Human Rights (NIHR) against ING Bank.
The litigation aimed to force ING Bank to change its working methods regarding the monitoring of transactions, to create more transparency surrounding the algorithms and (automated) decision-making practices deployed by banks and financial institutions, and to demonstrate the connection between employment algorithms and (automated) decision-making practices within financial institutions and the discrimination and stigmatisation of racialised groups, particularly Muslims.
Discrimination against Muslims caused by algorithm use by banks
Organisation Name
Public Interest Litigation Project (PILP)
Country/Jurisdiction
The Netherlands
Grant Amount
EUR 40,000
Current Status
Case won
Image credit: Photo by Eduardo Soares on Unsplash
Grant type
Litigation Track Support
Description
In 2024, PILP took litigation challenging automated decision making through the use of an algorithm by banks in the Netherlands, resulting in discrimination against people with “exotic” sounding names, whose transactions are frozen. PILP supported three individuals to file a complaint to the Dutch Institute on Human Rights (NIHR) against ING Bank.
The litigation aimed to force ING Bank to change its working methods regarding the monitoring of transactions, to create more transparency surrounding the algorithms and (automated) decision-making practices deployed by banks and financial institutions, and to demonstrate the connection between employment algorithms and (automated) decision-making practices within financial institutions and the discrimination and stigmatisation of racialised groups, particularly Muslims.
On 25 July 2024, NIHR ruled in favour of the individuals, stating that in the case of two individuals ING wrongfully discriminated on the basis of race by selecting them solely on the basis of their last name or mentioning a “non-Dutch” name in the description of a transaction. This is discrimination and therefore prohibited, NIHR ruled.
PILP assess that the ruling from NIHR applies not only to ING but to all financial institutions in the Netherlands that use similar screening methods, and therefore these discriminatory screening methods must stop immediately.
"On 25 July 2024, NIHR ruled in favour of the individuals, stating that in the case of two individuals ING wrongfully discriminated on the basis of race by selecting them solely on the basis of their last name or mentioning a “non-Dutch” name in the description of a transaction"
Strategic Goals
To counteract the discrimination of Muslims and people of colour by banks and financial institutions in the Netherlands.