iCert-Fair: A Human-Preference-Guided Two-Layer Framework for Multi-Objective Fairness Assessment and Harm Recovery in Credit Scoring

As regulatory requirements increasingly shape automated lending decisions, fairness remains a critical challenge in high-stakes domains, particularly credit scoring. Although artificial intelligence models can achieve strong predictive performance, they may also reproduce biased outcomes that reduce financial inclusion or transfer harm to overlooked protected groups. Existing fairness interventions commonly operate at a single stage of the decision-making pipeline, despite bias often propagating across representational and decision layers. This study proposes iCert-Fair, a two-layer framework for technical fairness assessment and harm recovery in credit scoring. The first layer adopts a fairness-through-explainability paradigm, using SHAP-based explanations to identify direct and proxy dependence on protected attributes and guide structural dataset repair, while the second layer applies targeted threshold-policy adjustments to recover residual harm while preserving decision utility. Experiments on the German and Taiwanese credit datasets show that fairness gains are model- and dataset-specific and may be collective, concentrated, transferred, or recovered unevenly across protected attributes. The direct comparison with representative pre-processing, in-processing, and post-processing methods revealed that baseline methods targeting one protected attribute at a time frequently transferred residual harm to other monitored attributes. In contrast, the fairness-focused recommendations generated by iCert-Fair achieved larger collective fairness improvements across all considered protected attributes while avoiding residual harm. These gains were obtained while preserving predictive utility on the German dataset and with utility degradation remaining below 5% across the evaluated performance metrics on the Taiwanese dataset, alongside consistently lower false-negative risk. The empirical findings support the use of complementary structural and policy-level interventions and demonstrate the importance of jointly evaluating aggregate disparity, worst-case attribute-level harm, cross-attribute transfer, and predictive utility.