Mobile Lending Apps and GDPR (Private data collected)

Has anyone at this point realized that post-GDPR (General Data Protection Regulation), mobile lending apps like Tala and Branch wouldn’t survive in Europe?

I think this made a strong case why they launched in African countries where we can’t expect such regulation to be a challenge.
I try imagine the kind of data these apps collect on you, including very private data of social media (Facebook for Branch), private messages and all the things you do with your phone if the app is installed. Then remember that if you ask them to close your account upon leaving their service they ask you to uninstall the app, that’s it (I did that sometime back when I was leaving Branch).

Meaning that even when you leave their services, they keep your data and don’t even keep this fact from you. On top of the cycle mobile lending apps will put you in of borrowing to pay and then borrowing, they will keep all that private information with them when you leave.

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I want to say wajinga ndio waliwao but truth is we are in the situation between a rock and a hard place. The credit industry is booming in Kenya and someone has to give loans one way or another. Banks and the likes of Safaricom are not as generous as Tala and Branch so they leave a gap in the market. So these firms are not going anywhere perhaps even with stringent regulations on data and privacy. However I think they are benefiting more from consumer data more than lending. Imagine what could be done with all that information they get!

In short we’re far from General Data Protection Regulation.

Most of these services are provided by Silicon Valley tech firms. They live for other people’s data.

The govt. also wants to start regulating these services due to their high-interest charges. They will definitely start collecting & selling more data when their bottom line takes a hit.

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The more reason why we are in desperate need of legislation on data protection and regulating the data market. Meanwhile we can first deal with Misuse laws that misuse the very laws that give lawmakers their authority.

The Financial Markets Conducts Bill should also have considerations for digital lending and regulating fin-tech start-ups. They are preying on the unsuspecting credit hungry Kenyans.

This should interest you all…


Thank you for this!!