Socio-Legal Discussion Group: Algorithmic Systems and Public Banking - Curse or Blessing for Fundamental Rights and Financial Inclusion?

My contribution presents the particular legal challenges arising from the use of artificial intelligence in the German public savings bank sector (Sparkassenwesen). As part of the indirect state administration, public savings banks face restrictions in their economic activities due to their public mandate. In contrast to private banks, they are also subject to a direct commitment to fundamental rights. At the same time, as market players, savings banks are bound by the principle of economic efficiency, not least in order to be able to fulfil their important public mandate in the long term. The abolition of guarantor liability and the comprehensive modification of the maintenance obligation due to European jurisprudence further intensified this conflict. The use of artificial intelligence enables consumer banks to achieve economic optimisation, which in the case of the Sparkasse could potentially jeopardise the adequate fulfilment of the public mandate. In addition to the necessary legal dogmatic basis, I will illustrate in particular the positive and negative effects on the financial inclusion of vulnerable population groups.