Fintech apps involved in digital lending may also offer payment services, which might lead them to use permissions that are typically not recommended for digital lending apps, the report pointed out. Photo: Bloomberg
More than 70 per cent of the fintech and banking apps, analysed in a Reserve Bank of India (RBI) report, have access to important information of users such as their media, storage on communication devices, and can track their location.
Calling them “most sensitive permissions,” the report on currency and finance has highlighted that fintech apps often collect personal data, potentially invading users’ privacy.
The recent report for 2023-24, released on Monday, analysed 339 fintech and banking apps listed on Google Play Store.
To mitigate this issue, the store evaluates the data and privacy policies of banks and fintech companies before granting app permissions, the report said.
Mobile wallets were noted to request the most sensitive permissions.
Fintech apps involved in digital lending may also offer payment services, which might lead them to use permissions that are typically not recommended for digital lending apps, the report pointed out.
The comparative analysis covered 40 apps each for the US and the EU and 181 apps in India, to assess the data safety practices of fintech apps in these regions.
Although Indian apps are better placed in sharing data with third parties, they are behind the US and the EU in matters like data encryption and the choices provided to users to request deletion of data.
The integration of fintechs and e-commerce platforms may increase consumers’ vulnerability to the misuse of their personal and confidential information, noted the report.
First Published: Jul 31 2024 | 4:34 PM IST
