Kenya: spike in digital mobile loans raises concern over customer data

22 November 2019

Money Transfer

A significant increase in digital loans in Kenya has resulted in some service providers extracting data from the mobile devices of unsuspecting customers in order to evaluate risk profiles.

A new report by finance and economy focused organisation FSD Kenya, established in 2005 by the UK's Department for International Development, titled Digital Credit Audit, said that the scraping of data from a users' phone strengthens the financial system through credit scoring.

An excerpt from the report reads: "A FinTech app-based lender without access to potential borrowers' financial data may require permissions for the app to scrape data from the borrower's phone, including reading messages with details of financial transactions."

Read the full article on ITWeb here