Govt lens on fintech cos with China links

The government has turned its lens on several fintech apps with Chinese links to check for data and privacy breaches, two people directly aware of the development said.

Several app-based lenders are likely to be added to a list of banned entities being compiled by the Union government, which has already barred a host of Chinese content, messaging and apps, including TikTok and PUBG Mobile.

“The potential implications of a data compromise from fintechs such as lending apps are quite grave, since it involves sharing sensitive financial data of the user to the lender,” said one of the two people cited above, requesting anonymity. “The kind of data one provides to fintech firms is riskier than what one would share on social media networks. Data on income tax, Aadhaar card and other details are taken by these app-based lenders.”