Data Privacy And Fintech: Intellectual Property Considerations In India

This article has been written by Shruti Chaturvedi, a 3rd year student of Agra College Agra 

 

Abstract 

This issue discusses the ways that financial technology, or Fintech, is extending its roots into the internet era, which industries are utilizing it, and how it demonstrates how the world is becoming more and more digital. To modernize and make their own nations smarter, many governments have concentrated on doing so. Anyone may easily go cashless anywhere they choose thanks to fintech. However, privacy and security go hand in hand. As a result, numerous regulations have been developed to protect data from unauthorized access and malicious or malware attacks. This article aims to provide readers with an overview of the entire process that is involved in protecting each user’s personal data when utilizing technology. Whether it has to do with money or other strategies. Whether it has to do with money or other strategies. The information available and numerous forms of data privacy have been laid out in this article. In this piece of writing, some countries laws have also been covered, like India, Brazil, and China. An explanation of some kind of data privacy has also been mentioned. It also dealt with information about fintech (financial technology), like how it works and what its examples are. This has also covered the consideration of intellectual property rights in India, whereas it also gives the example of the most famous case, which has taken the attention of every individual. It talks about intellectual property rights.

This has also covered the consideration of intellectual property rights in India, whereas it also gives the example of the most famous case, which has taken the attention of every individual. It talks about intellectual property rights.

Keywords – Fintech (Financial Technology), Data Privacy, Laws , Digitalized , Country

Introduction 

Internet age refers to the 21st century. This is closely related to the concept of data privacy. Despite the significance of the internet and social media sites. Data privacy is very important in the financial industry. Data privacy is now no longer an issue due to the technology people have adopted day by day. This implies that one coin has two faces. With the same proverb, it can be concluded that due to technology, many people’s lives have become easy and hassle-free, but at the same time, they have lost the privacy that the data hacked while the people were using their devices. For example, if a person is using an app and they need to follow all the rules and policies, they can continue with the agreed option without reading the policies, where it is clearly written that they can track their location, use their photos, images, etc. And from there, the data privacy word has been removed from the mind of the user. In the modern era, data privacy is a major concern for every individual, not just for a particular nation but for numerous nations. Many countries used the technology as a weapon by attempting to gather information on enemy government websites and target data privacy. The best example to demonstrate data privacy in general is the dark web. There have been a lot of press reports lately about the dark web site stealing personal data. Since numerous government agencies view data privacy as a critical concern, they have created legislation for the safety of their citizens, for instance. Switzerland is considered to have the best laws in the world.

 

In Brazil, after GDPR, LGPD came into effect. So, they have set the penalty maximum amount at $10.6 million.

According to a 2018 amendment, data privacy was made a human right in Chile. Therefore, any organizations that is determined to have inadequate data protection procedures may be held accountable for violating human rights.

The effectiveness of China’s Personal Information Protection Law (PIPL), a data privacy law, is enhanced by two additional laws:

 

1. The Law on Cybersecurity
2. The Law on Data Security (DSL)

 

Furthermore, the rights to privacy and the protection of confidential data are enshrined in the People’s Republic of China’s Civil Code.

 However, it doesn’t stop there. Organizations that operate out of China or provide services to Chinese nationals must not only comply with all applicable laws but also with additional regional constraints, like the Shenzhen Special Economic Zone Data Regulation and the Shanghai Data Regulation.

The Personal Data Protection Law (PDPL) of Egypt complies with almost all of the standards anticipated from most data protection laws, including:

It is applicable to any organization, domestic or foreign, that handles the processing or gathering of data about Egyptian citizens.

All data controllers and processors have an obligation to notify the proper regulatory bodies of any data breaches within 72 hours once they become aware of them.

The GDPR’s maximum sanction of one million Egyptian pounds, or around $54,000, is much higher than the Egypt PDPL’s non-compliance penalties.

The General Data  Protection Act ( EU Data privacy law) has been considered as the strictest security law

The new Digital Personal Data Protection Act 2023 was unveiled by the Indian government in August of that year. The Indian government has taken the lead in the area of cyber law in order to digitize India while upholding each person’s right to privacy. Ensuring the protection of citizens’ data commences with this. The Bill will prove to be applicable to the processing of digital personal data in India, whether the information is digitalized after being collected offline or online. If the handling is done outside of India in order to supply goods or services in India, it will likewise be covered.

Only with the individual’s consent and for a legitimate reason may personal data be handled. Certain legal uses, such as an individual’s voluntary sharing of data or the State’s handling of data for licenses, permits, perks, and offerings, might not demand approval.

Data fiduciaries will have a duty to ensure accuracy of the data, store data securely, and remove it after it has served its purpose.

Individuals are given specific rights under the bill, such as having the right to access information, request deletion and rectification, and file grievances. The right to data portability and the right to be forgotten are not granted to the data principal by the proposed legislation.

The bill permits the transfer of personal data outside of India, with the exception of nations that the federal government notifies. It’s possible that this process won’t provide a sufficient assessment of data protection laws in the nations where personal data transmission is permitted.

The terms of the appointments to the Data Protection Board of India are two years, after which they can be renewed. The Board’s ability to operate independently may be impacted by the short term and the possibility of reappointment.

With a few exceptions, the Act will require organisations that gather user information to have explicit consent from the subject before processing the data. Additional clauses designate specific organisations as “Significant Data Fiduciaries” and place stricter compliance requirements on them because of the kind and quantity of personal data they handle. Along with outlawing customised marketing and behavioural surveillance of children, the Act also creates the Personal Data Protection Board (commonly known as “the Board”), whose duties include looking into data breaches and responding to questions from customers regarding the use of their personal information. Penalties of up to 2.5 billion rupees ($30 million) may be imposed for alleged Act infractions.

Out of 194 countries, 137 have cyber laws where they get the chance to protect their data.

Types of Data Privacy

Encryption- Data encryption is the technique of jumbling up data and concealing its actual meaning using algorithms. Data encryption guarantees that only the intended receivers are able to read messages.

Cloud Security- Many organisations are moving data to the cloud to facilitate sharing and cooperation. But because sometimes users use personal devices and unsecured networks, there is a greater probability that they will become malicious.

Financial Privacy- Financial information is susceptible to being used to conduct fraud; therefore, sharing it online or offline is delicate.

Data Password- Password protection is the method by which users can protect their information from unwanted entries. It was recommended that the same password not be used in different applications.

 So, the question is how is Fintech  app works Amica Financial Technologies Private Limited is the proprietor and operator of the Jupiter website and mobile application. It offers borrowing services, monetary investments, and savings accounts, among other financial services. Along with salary accounts, it also provides mutual funds, pots, insights, rewards, and debit cards. 

Examples of Fintech companies 

• Mobile Banking – Mobile banking is safe, secure, quick, easy, hassle-free, and time-saving. It enables the user to do the transaction from the place where they are. And that’s why they are gaining popularity worldwide.

 

• Block Chain – It is the distributed Ledger technology provides an unchangeable, transparent, and safe means of storing, sharing, and recording data. It has made it possible for fintech businesses to offer their clients quicker and more effective services, which may soon serve as an example of a fintech solution. It is innovative fintech applications like digital wallets, cryptocurrency exchanges, and decentralised finance (DeFi) have all been made possible by block chain technology.

 

• Insurtech –  It is the initiative used to accelerate the insurance sector’s rapid expansion. This will increase productivity and improve customer satisfaction. By using machine learning (ML) and artificial intelligence (AI), insurtech firms may deliver more precise risk assessments, which lowers premiums and improves the customer experience. Furthermore, by using big data to gain a greater understanding of consumer behaviour, insurtech companies may offer more specialised insurance products and services.

 

• Regtech – It can be expanded as regulatory technology. To give financial companies a competitive edge in the market, lower expenses, and automate compliance tasks. Regtech enables businesses to proactively identify, monitor, and handle compliance responsibilities, helping them remain ahead of the constantly evolving regulatory landscape. Artificial intelligence (AI), machine learning, natural language processing, and data analytics are just a few of the cutting-edge technologies that regtech solutions use to assist businesses in identifying compliance issues and developing ways to prevent losses.

 

• Portfolio Management Platform – are intended to support investors in making well-informed investment decisions by enabling them to monitor performance, spot hazards, and put additional measures into place. These platforms can give investors access to comprehensive financial information and analysis thanks to the newest technological advancements. Usually, these types of sites provide instruments for risk management, portfolio analysis, and backtesting, which let investors monitor and evaluate their assets over time. Additionally, a lot of platforms include educational materials to assist investors in becoming more knowledgeable about the markets and improving their decision-making, including webcasts, articles, and seminars.

 

•   Digital Lending and credit  -Digital credit and lending are crucial components of the developing fintech sector. Digital lending is the practise of providing customers with financial services, such loans, through the use of digital technology. The ability to borrow money from a lender and repay it over time in accordance with a predetermined schedule is known as credit, on the other hand. Because of the rapidity and convenience with which they provide consumers, digital lending and credit have emerged as examples of fintech solutions.

 

• Automated Advisor – Asset allocation, investment guidance, and portfolio management are just a few of the many services offered by automated advisors. These financial advisors can also provide clients who might lack the means or knowledge to handle their own investments with individualised financial guidance. Clients can oversee their portfolios and receive expert advice at a reasonable price by using automated advisers. Furthermore, automated advisers give users access to complex algorithms that can evaluate data and deliver personalised recommendations. This can assist investors in reaching their financial objectives and help them make more knowledgeable choices regarding investments.

Intellectual Property Considerations In India

  There are seven different kinds of IP rights recognised in India:  copyright, trademarks, patents, geographical indications, plant varieties, industrial designs, and designs for semiconductor integrated circuits. Landmark judgement  is -:

• S. Victor Whitmill v. Warner Bros. Entertainment Inc.( Civil Action No. 4:11-cv  -7 )

Conclusion

 From this whole discussion, it can be concluded that data privacy plays a main role in the establishment of a digitalized world. If digitalization is necessary, then the safety of each and every individual is necessary. Fintech (financial technology) is becoming a culture in every sector. So for this, citizens need to secure their data from unwanted entries, malware, hackers, ransomware and phishing. 

In this topic, data passwords, data protection, and data encryption have been covered, while it also talks about financial technology, which is also popularly known as fintech. Due to the evolution of technology, the digital world has rapidly increased its progress.

References 

• Wilmer Hale  https://www.wilmerhale.com/en/insights/blogs/wilmerhale-privacy-and-cybersecurity-law/20230818-india-passes-long-awaited-privacy-law (last seen on November 5)

• PRS legislative India https://prsindia.org/billtrack/digital-personal-data-protection-bill-2023 (last seen on November 5)

• Carnegie India  https://carnegieindia.org/2023/10/03/understanding-india-s-new-data-protection-law-pub-90624#:~:text=Introduction-,In%20early%20August%202023%2C%20the%20Indian%20Parliament%20passed%20the%20Digital,(DPDP)%20Act%2C%202023.&text=The%20new%20law%20is%20the,half%20a%20decade%20of%20deliberations. ( last seen on November 5)

• Lexology https://www.lexology.com/library/detail.aspx?g=7045cf52-4a2c-465f-980b-b5af034e2064#:~:text=In%20India%2C%20there%20are%207,semiconductor%20integrated%20circuit%20layout%20designs. (Last seen on  November 5)

• Enzuzo https://www.enzuzo.com/blog/types-of-privacy (last seen on November 5)

• RKKEI https://rikkeisoft.com/blog/fintech-services-examples/ (Last seen on November 5)