FG’s policy on data restriction by Google may negatively impact digital lending platforms – Analysts
The Federal Government of Nigeria (FGN) recent policy initiative banning tech giant, Google and loan applications from access customers’ data analysts say will have a negative impact on the operations on digital lending platforms in the country.
The new policy will take effect on May 31.
The ban includes restricting Google from having access to customers’ contact numbers and photos – these components which determine credit worthiness and in loan recovery from customers will no longer be accessible.
This also leaves operators to explore alternative ways of assessing credit risk and collecting loans.
Another limitation this has created is imbalance between the need to provide access to credit for underserved populations and competition in the digital lending market.
The ban comes few days after license were granted to 117 digital loan operators in the country.
Google will prohibit apps from accessing sensitive user data such as photos, videos, contacts, precise location data, and call logs.
Although, there is no known sufficient explanation as to why the ban but it is believed the move is aimed at preventing the unethical ways these lending operators adopt to go after customers in recovery their money.
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