Indian lenders are cozying up to the idea of offering phones on loans to working-class people but remotely shut it down if they fall behind on payments
This method of "collateralizing smartphones" has unintended consequence 🧵
1. Send AV prompts in regional languages 2. Forcefully change cellphone wallpaper 3. If a prolific selfie-taker, send notification every time camera is opened 4. Block frequently used social apps Facebook and WhatsApp 5. Shutdown phone
Despite widespread access to low-cost smartphones, the average Indian still needs to work 63 days to afford one
That's why financing phones has become an important driver of sales, ~60% of all high-end smartphones are sold on installment-based plans
Vendors sell smartphones to first-time borrowers on high-interest payment plans financed by loan companies, but only after users install an undeletable app at the point of sale
The apps monitor repayment behavior throughout the duration of the loan
There's strong behaviour setting in among new-to-internet customers
“We see almost 50% of these people pay within three days of just putting up the wallpaper, and almost 70% in seven days” said Neel Juriasingani, CEO of Datacultr, a leader in collateralising smartphones
In the past year, two of the largest consumer durable lenders in India, Bajaj Finserv and TVS Credit, have incorporated Datacultr’s technology for debt recovery into many of the smartphones they finance
Screenshot of the locked phone👇
Multinational firms like Google and Samsung are also offering their own device-lock apps to finance phones in 'Rest Of World' markets, a strong indicator of the emerging practice: Loans in exchange for consumer privacy
Latin America is the leader in mobile locking tech
This has spurred an illegal reselling economy. Faced with mounting payments, some borrowers go on to sell locked smartphones for a discount on secondhand marketplaces like OLX. Debt burden de facto rolls over to the new owner
1/8 If you are one of those interested in reading about how Chinese apps like TikTok, Bigo and Likee have shaped Indian communities and their identities, bookmark this thread and browse through 🧵
It includes some fantastic reporting from eminent friends and colleagues as well
2/6 The first one is about the thousands of hyperlocal stars who have emerged from the use of Chinese video apps and the dynamics of handling fame. Co-authored this piece with the inimitable @VarshaaBansal
3/6 This story by @venkatananth and @Vegan_Shakes gives you all the perspective you need about monetary incentives of influencers, TikTok's past run-ins with the Indian govt and their convoluted pay structures. Must read if you are platform policy wonk
The EC website publishes a list of registered voters and their personal details including gender and voter ID, both of which are considered sensitive personal information. How do we balance: Personal #privacy and Public accountability bit.ly/2ALpQTY@alokpi@pandayjyoti
The ambiguity extends to other public databases such as land records, list of MGNREGA beneficiaries, First Information Reports, and court records, which are currently not in conformance with the draft #privacy bill by Justice Srikrishna Committee
Political data analyst @ShivamShankarS on how electoral roll can be used for micro targeting: “From the electoral roll, demographic #data of the constituencies can be deduced and used for targeted campaigns in elections via social media.”