The Co-founder of Carbon, Ngozi Dozie, has said that the new Policy by Google restraining loan apps from accessing customers’ contacts and photos will harm digital lenders.
Dozie said in a blog post published on Tuesday, April 11, 2023, despite the good intention of the policy, it could cripple innovation and restrict the efforts of fintech firms from driving financial inclusion, putting them at a disadvantage to the benefit of the big banks.
He stated that loan apps are treated differently and unfairly despite the similarity in operations by the banks.
He said:
“Why the different treatments? The distinction between lending apps and digital banking apps is disingenuous; a bank, which Carbon is, by default, lends. Therefore, all banking apps are by default lending apps, broadly speaking.
“There is a grave danger that what started as a positive action will stifle innovation and hurt the smaller companies doing God’s work in financial inclusion. Worse, there is already an uneven playing field between the fintech Davids and the Big Bank Goliaths.”
The Carbon boss said that some loan apps had abused access to customers’ contacts and photos, necessitating the Google policy.
He said Google had responded proactively to the abuse by restricting access to personal data on the phone and Apple.
He said:
“Clearly, this practice is abusive and goes against all privacy laws; Google is right to reduce the invasion of privacy.
But in implementing this policy with not enough nuance, Google is cutting the legs off from some of the more innovative companies that are doing the Lord’s work, like Carbon,” he said.
