(MENAFN- KNN India)
New Delhi, Aug 30 (KNN) India is witnessing an unprecedented surge in digital financial services, particularly in digital lending. Against this backdrop, IIIT-Bangalore and CUTS International recently hosted a pivotal workshop in Bangalore to discuss the complexities surrounding Multi-Party Privacy (MPP) in the nation's evolving digital lending sector.
The workshop, which was conducted in a hybrid format, showcased project findings by the two institutions, funded by the Centre for Effective Global Action (CEGA) at the University of California, Berkeley, USA.
This workshop marks the first time that the issue of multi-party privacy and co-owned data has been discussed within the context of digital financial services and digital lending in India. The research team, led by Prof. Janaki Srinivasan, V. Sridhar, and T.K. Srikanth from IIIT-Bangalore, alongside Amol Kulkarni and Asheef Iqubbal from CUTS, deployed a unique methodology involving controlled experiments, observational tools, large-scale surveys, and stakeholder consultations to delve into the trade-offs consumers face.
The study findings underscore the importance of co-owned data in expanding access to credit, while highlighting users' expectations for consent from all parties involved.
However, many consumers feel constrained by app designs that do not provide mechanisms for obtaining permission before sharing co-owned data.
Furthermore, the study revealed that digital lending providers often use alternative data sources, such as e-commerce transactions and telecom records, to assess creditworthiness for collateral-free loans, raising significant privacy concerns for consumers.
The workshop, which came at a critical time for India's digital financial expansion, particularly in digital lending, also featured insights from prominent voices in the digital finance sector. Rakesh Maheshwari, Former Sr. Director and Group Coordinator of Cyber Laws and Data Governance at MeitY, highlighted that the current digital lending guidelines by the Reserve Bank of India (RBI) and the provisions in the Digital Personal Data Protection (DPDP) Act 2023 address most privacy concerns related to digital lending.
Jatinder Handoo, CEO of the Digital Lenders Association of India (DLAI), discussed the steps taken by digital lending platforms (DLPs) to comply with privacy and data protection regulations. He emphasised the Self-Regulating Organisation (SRO) model initiated by the RBI as a positive step toward managing consumer and business interests effectively.
The workshop also featured perspectives from Ranjeet Rane, Research Head at the Reserve Bank Innovation Hub, who stressed the need to balance regulatory interventions with promoting innovation in the digital lending space. Meanwhile, Misha Sharma, Head of Household Finance at Dvara Research, highlighted the necessity for benchmark studies to compare DLPs and educate consumers.
The workshop concluded with key takeaways for consumers, DLPs, and regulatory organisations. The Principal Investigators (PIs) announced that the full report would soon be available in an open repository for public access, offering a comprehensive understanding of multi-party privacy in India's burgeoning digital lending sector.
(KNN Bureau)
MENAFN30082024000155011030ID1108620225
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.