With the growth and maturity of India’s fintech market, DSA (Direct Selling Agent) apps help finance companies by making loan origination, customer sign-up, and partner registration more straightforward. Yet, along with being easy comes the need to watch security and comply with rules. As important papers like PAN, Aadhaar, income documents, and bank entries are now handled online, you should use a DSA app that guarantees top security.
The blog explains what Indian DSA partners, NBFCs, and fintech lenders should pay close attention to when choosing or developing their DSA app.
- End-to-End Data Encryption
Encryption can mostly prevent cyber threats. When applying DSA in India, E2EE keeps customers’ information safe both during transmission and while it is stored. If data falls into the wrong hands, it will not be understood without the decryption key.
Make sure the app provides security by using 256-bit SSL encryption for uploads of any documents, adding financial information, and for messages sent between the application and its server. The app also needs to rely on HTTPS and secure APIs to avoid being attacked by people across devices. A lack of encryption explanations in the documentation is a concern.
- Secure Platform for KYC and Aadhaar Masking
In India, the RBI and UIDAI oversee the tight control of KYC guidelines. You should only use an Aadhaar-based app if it follows all the guidelines stated here when using Aadhaar information.
Ensure that KYC can be done with OTP-based Aadhaar e-KYC, and the app should make it a default to hide the first 11 digits of the Aadhaar number. Anyone storing full Aadhaar numbers is guilty unless they are allowed to do so by UIDAI guidelines. All KYC documents ought to be kept under encryption, allowing access only to approved employees.
- Role-Based Access Control (RBAC)
They usually work by giving authority to field agents, team leads, and teams that work at the backend. Customer information needs to be restricted by using Role-Based Access Control within an application.
RBAC ensures that people can only view the documents and data linked to their role. A field agent is only allowed to deal with their leads and files, leaving the collection to the team to others. Admins or supervisors may get additional privileges, yet every data transaction should be logged properly. It reduces the chance of information leaking inside your company and ensures the app is used according to best practices.
- Data Collection Model Through Consent-Based
Under India’s IT Rules from 2011 and the coming DPDP, users should explicitly agree before their data is collected or processed. Consent should be included in every action of the data used within an app.
Bandits should always mention their intentions for using the captured data and ask customers to consent. The app should also track and log instances where consent was provided. Consent should always be straightforward to confirm, unlike terms and conditions that can be difficult to read. This allows you to maintain proper ethics and meet all compliance requirements in your DSA operations.
- Document Storage and Cloud Infrastructure
Since DSA apps store user records on the cloud, including income documents, IDs, and contracts, it is important that the cloud is safe and adheres to Indian data residential norms.
It is best if apps host their servers in India or use cloud services that meet the RBI’s recommendations. Focus on certificates such as ISO/IEC 27001 when assessing information security in a company.
The data should be stored by encryption, and regular backups create redundancy to protect it in case the system fails. Avoid using apps that do not encrypt information stored locally on an agent’s phone.
- Maintaining Regulatory Compliance With RBI and SEBI
An app providing DSA services from or to NBFCs and lenders should comply with RBI standards and those of SEBI if it includes investment products. The application should have frameworks that enable e-KYC, check loan eligibility, and review documents as Indian regulations require.
Following the circulars issued by the RBI helps avoid facing difficulties should your app not support the digital lending’s required elements. Compliance updates and documentation of the following financial and fintech rules should be made available frequently in the app.
Before working with any product, look into its security systems, check its past compliance, and request verification of its certificates. A good Loan Agency will support your business and ensure everyone is kept secure as regulations in the financial sector evolve.
