Xiaomi is more than a well-known name in the world of smartphones and technology. The company has previously launched a digital lending platform by the name, Mi Credit in 2018. Now, Xiaomi is making plans to launch the beta product of the same.
Xiaomi’s earnings in the second quarter have been inadequate, and this platform may be a way for them to recover their losses.
But, there is a twist – Xiaomi will have unlimited access to your private data.
Why does Xiaomi require access to private data for a digital lending platform? Let’s find out right here!
Xiaomi Launches Digital Lending Platform: Mi Credit
In 2018, Xiaomi had launched a digital lending platform, Mi Credit which was exclusive for Xiaomi users. This was in partnership with a startup, KreditBee, in which Xiaomi had invested $8 million.
The beta version of Mi Credit will be unveiled in the following few weeks.
A Xiaomi spokesperson has divulged some information about the platform, which will offer loans of up to 100,000 rupees ($1,451) at interest rates from 1.8 per cent. Mi Credit will not offer the actual loan, but will connect the interested applicant to the services that do offer the loan.
However, while the financial market of India is widespread, calling it crowded would be an understatement.
Data privacy, however, is at a risk in the new lending platform that will be launched by Xiaomi.
Why Does Xiaomi Require Access To Personal Data?
As per reports, Xiaomi will require data from a user’s phone to gain information on the person’s “identity, life stage, lifestyle, social relationships, and brand loyalty,” for creating credit profiles of the concerned person.
In short, the company requires access to your personal data to check if you are eligible for the loans that will be offered to you.
Customers who will sign up for Mi Credit will have to officially allow the company, by signing agreements, to access their private and personal data, “including professional and educational background and information related to use of certain apps and websites.”
The users will also be required to allow the company to share ‘personal information from time to time to Xiaomi affiliated companies…or third party service providers’.
Accessing personal data is one thing, which is quite huge for data privacy as it is, but sharing personal and confidential data to other platforms is quite unexpected and shocking.
Comments are closed, but trackbacks and pingbacks are open.