Final answer:
The bias in the automated bank loan approval app is geographic bias, which refers to a prejudice or discrimination based on an individual's geographical location or place of residence.
Step-by-step explanation:
The bias in the automated bank loan approval app that only accepts applications from one zip code is geographic bias. Geographic bias refers to a prejudice or discrimination based on an individual's geographical location or place of residence. In this case, the app is biased against people residing outside of the specified zip code, which can result in unfair and discriminatory loan approval practices.