Fintech firms rush to make tweaks as new data protection law looms

As they race against time to build systems compliant with the Digital Personal Data Protection (DPDP) Act of 2023, fintech founders are having their compliance teams scramble to implement strategy updates and align practices with the act, according to a report by The Economic Times (ET).

According to industry experts, fintech firms are already required to follow strict data guidelines from regulators, and the new data protection law will significantly add to their compliance burden.

Fintech companies, banks, and non-bank financial companies (NBFCs) must redraw their contracts with business partners who share customer data. Processes related to cross-selling financial services based on data sharing for payment aggregators must be reassessed.