Most fintech, banking apps tap into users' location, other information
NEW DELHI: More than 70 per cent of the financial technology (fintech) and banking applications (apps) analysed in a Reserve Bank of India report have access to crucial user information such as media and storage on communication devices and can track their location. Calling them “most sensitive permissions”, the Report on Currency and Finance 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 the 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. Nearly 73 per cent of these apps tracked user location, while over three-fourths sought data permissions for users’ photos, media, files, and storage and requested access to WiFi connection information. 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.
Indian fintech apps are more likely to request permissions for access to phones, cameras, device IDs, call information, location tracking, and SMS data compared to their counterparts in the US and the European Union (EU). The comparative analysis covered 40 apps each for the US and the EU and 181 apps in India, assessing the data safety practices of fintech apps in these regions.
Although Indian apps are better placed in sharing data with third parties, they lag behind the US and the EU in matters like data encryption and the choices provided to users to request the 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.