According to the textbook:

"The availability of data has enabled companies throughout the economy to better target their products to consumers, and financial services companies are no exception. In financial services, areas that have been particularly successful include retail financial services, lending, and insurance. $...$ Although these providers have opened new markets and may provide services at lower cost, there are also potential concerns. Customers that are found to be higher risk based on the machine learning algorithms may now pay more for the service or not be offered the service at all."

What best explains why a customer might not be offered a service due to new technology?

Finance companies that use advanced algorithms become more conservative with lending standards and take on fewer customers.

Even advanced algorithms can be biased and prefer customers of a certain race or gender

Advanced algorithms are flawed and can make mistakes

Advanced algorithms can pick up on subtle details that might have been previously missed. Those details might weaken the application leading to higher prices or denial of service.