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NITDA Sanctions Soko Loan over Data Privacy Invasion

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Soko Loan

By Adedapo Adesanya

The National Information Technology Development Agency (NITDA) has sanctioned an online lending platform, Soko Lending Company Limited (Soko Loan), for data privacy invasion.

The agency through its Head, Corporate Affairs and External Relations, Mrs Hadiza Umar, in a statement on Tuesday, said the action was taken following series of complaints against the company for unauthorised disclosures, failure to protect customers’ personal data, defamation of character and violation of the provisions of the Nigeria Data Protection Regulation (NDPR).

According to her, one of such complaints filed by Bloomgate Solicitors on behalf of its client, the data subject, was received on Monday, November 11, 2019, which prompted the agency to investigate the claims.

Mrs Umar explained that Soko Loan granted its customers uncollateralised loans which required a loanee to download its mobile application on the phone and activate a direct debit in the company’s favour.

“In such manner, the application gains access to the loanee’s phone contacts,” she said.

According to one of the complainants, when he failed to meet up with his repayment obligations due to insufficient credit in his account on the date the direct debit was to take effect, the company unilaterally sent privacy-invading messages to the complainant’s contacts.

She said NITDA’s investigation revealed that the complainants’ contacts who were neither parties to the loan transaction nor consented to the processing of their data had confirmed the receipt of such messages.

The agency also made efforts to get Soko Loan to change the unethical practise but to no avail.

She added that following the investigation, it secured a lien order on one of the company’s accounts by which it could come up with privacy-enhancing solutions for its business model.

Mrs Umar said instead, Soko Loan decided to rebrand and direct its customers to pay into its other business accounts.

She said: “The agency’s investigation further revealed that the company embeds trackers that share data with third parties inside its mobile application without providing users information about it or using the appropriate lawful basis.

“NITDA has, therefore, found Soko Loan and its entities in violation of use of non-conforming privacy notice, contrary to the content of the NDPR, insufficient lawful basis for processing personal data, contrary to Articles 2.2 and 2.3 of the NDPR.”

It said the company was involved in “illegal data sharing without appropriate lawful basis, contrary to Article 2.2 of the NDPR, unwillingness to cooperate with the Data Protection Authority, contrary to Article 3.1 (1) of Data Protection Implementation Framework and non-filing of NDPR audit reports through a licensed Data Protection Compliance Organisation (DPCO).

“In view of the foregoing and in consideration of its implication on the privacy of Nigerians and erosion of trust in the digital economy, NITDA hereby imposes a monetary sanction of N10 million on Soko Lending Company Ltd.

“NITDA also directs that no further privacy-invading messages be sent to any Nigerian until the company and its entities show full compliance with the NDPR.”

She said the agency also directed the company to pay for the conduct of a Data Protection Impact Assessment by a NITDA appointed DPCO on its operation and placement on a mandatory IT and Data Protection oversight for nine months.

The agency clarified that the incriminating aspects of the investigation were deposited with the Nigerian Police to determine if the executives of the company were liable to imprisonment for violating Section 17 of the NITDA Act, 2007.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Banking

Polaris Bank in Safe Hands, No Need to Panic—Management

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Polaris Bank Rewards Customers

By Aduragbemi Omiyale

The management of Polaris Bank Limited has urged its customers and members of the public not to panic over reports that the financial institution has been sold to a new investor, Mr Auwal Gombe, in the sum of N40 billion.

It was recently reported that efforts are being made to hand over the lender to the businessman, who is said to be an ally of former military president, Mr Ibrahim Babangida, after the Central Bank of Nigeria (CBN) nationalised the defunct Skye Bank Plc into Polaris Bank in 2018.

In a statement issued on Friday in Lagos, the bank described the report of the purported sale as not only “speculative” but done to deliberately “create panic” among its customers and the banking community.

The company said the CBN established it and injected funds for its operations, it has bounced back to profitability, with a solid balance sheet, saying there is no cause for alarm as the bank was in safe hands.

“Stakeholders may recall the regulatory intervention in the erstwhile Skye Bank by the CBN and the subsequent injection of capital via the Asset Management Corporation of Nigeria (AMCON) through a bridge bank process, which birthed Polaris Bank in 2018.

“The bank has since stabilised its operations following the intervention; improving its balance sheet, customer base and profitability,” a part of the notice today said.

Continuing, Polaris Bank noted that, “Whilst the intention has always been to return the bank to private ownership, such a sale would occur following regulatory approvals with formal notification to all relevant stakeholders,” expressing its commitment to “ensuring timely communication to the public in such an event.”

 “The board and management hereby reassure its customers, staff and the general public that Polaris Bank remains a stable, strong and credible financial institution, positioned to deliver sustainable value to all its stakeholders,” the statement concluded.

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Wema Bank Refutes Dud Cheque, Forgery Allegations

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By Aduragbemi Omiyale

The management of Wema Bank Plc has rubbished an allegation that it issued a dud cheque in connection with a garnishee proceeding for the payment of a judgement debt on behalf of the Bayelsa State Government.

A legal practitioner, Mr George Haliday, had accused the financial institution of issuing dud cheques but in a statement issued on Wednesday, the lender explained that the cheques have only not been cleared for payment because of the subsisting appeal at the Court of Appeal sitting in Abuja on the garnishee proceeding which has now been decided in its favour.

According to the statement, the lawyer only ran to the Magistrate Court in Abuja to lodge a complaint about the issuance of dud cheques after he lost his case at the appellate court.

“It is very worthy of note that the judgement debt against Bayelsa State Government, which Barrister George Haliday attempted to enforce by a garnishee proceeding, thereby leading to the issuance of the cheques in question had been settled by Bayelsa State Government via a Terms of Settlement between Barrister George Haliday and the Bayelsa State Government at the Supreme Court,” a part of the statement.

Recently, there were reports that the Managing Director/CEO of Wema Bank, Mr Ademola Adebise, was issued an arrest warrant, but the bank dismissed this, saying its leader was not given a fair hearing in the matter.

“Wema Bank wishes to state that the warrant for the arrest of Mr Ademola Adebise is in violation of his fundamental rights to fair hearing as he was never personally served with any process to appear before the magistrate court nor was he represented in court.

“We are a law-abiding corporate citizen; if there was any court summons properly served on the Managing Director for his appearance in court, he would have done so without fail.

“But in this case, there was no such service extended to him or any court processes personally served on him to appear in court until a warrant of arrest was issued in absentia. We view the arrest warrant as being an infringement on his fundamental rights,” the statement said.

Concluding, the lender emphatically refuted and dismissed “in their entirety, the allegations of dud cheque and forgery levelled against our bank and the Managing Director. We also dismiss the inappropriate issuance of a bench warrant on our Managing Director.

“We are already engaging in legitimate actions to seek redress and bring all the perpetrators of these unprofessional conducts and heinous criminal acts against our Managing Director and the bank to book.”

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Advans Nigeria Becomes Most Innovative Microfinance Bank

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Advans MFB

By Aduragbemi Omiyale

More big feathers have been added to the colourful cap of Advans La Fayette Microfinance Bank, cementing its leadership position in the small lending business in Nigeria.

Recently, in recognition of its customer-centric credentials and innovation in product development, service delivery and brand management, the financial institution was named the Best Microfinance Bank in Nigeria at the Financial Derivatives Awards 2022.

Also, the company emerged as the Most Innovative Microfinance Bank in Nigeria in the Global Brands Magazine and World Economic Magazine Awards 2022.

The Managing Director/CEO of Advans La Fayette Microfinance Bank, Mr Gaetan Debuchy, while reacting to the accolades bestowed on the firm, dedicated the awards to the working management and staff of the bank, promising that the bank would continue to break boundaries.

“We are excited to win these awards. It further validates our innovative approach to providing customer-centric, affordable and transparent financial services,” Mr Debuchy said.

Also, the Head of Marketing and Communication at Advans La Fayette Microfinance Bank, Mr Kayode Abraham, stated that, “Over the years, we have centred our business on customer needs and feedback, which has helped us develop financial solutions from scratch to completion. We are pleased to be recognised as the most innovative and best microfinance bank in Nigeria.”

Earlier in the year, Advans Nigeria upgraded its mobile banking app ‘Adspire’ to include users’ ability to request bank statements and control their daily transaction limit. Through the app, clients can receive notifications and share by referring their friends and loved ones.

The bank recently introduced a micro-health insurance product and an education loan to facilitate financial inclusion.

The health insurance product was designed to ensure existing and prospective clients have access to high-quality and affordable health care services, while the education loan was designed to provide working and investment capital for school owners and to assist parents in paying their children’s school fees with ease.

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