The Fintech Association for Consumer Empowerment (FACE), an industry body of fintech lenders, has voiced its support for the Indian government's efforts to ban predatory lending apps. In a statement, CEO Sugandh Saxena expressed confidence in the government's actions to create a safe and robust ecosystem for consumers and improve customer trust in digital lending.

She said, “All of us as industry stakeholders, including fintech entities and investors and lenders, draw huge confidence from the Government’s actions to create a safe and robust ecosystem for consumers and the fact that the Ministry of Electronics and Information Technology (MeitY) is resolving the issue for legitimate entities with the highest priority. Steps like this will improve customer trust in digital lending and expand the market for legitimate entities.”

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Saxena highlighted the challenges faced by legitimate fintech lenders, who have had to contend with the rise of illegal lending apps that erode consumer trust and encroach on the market share of legitimate players. She emphasised that FACE members are committed to setting high standards for customer service, innovation, and impact, and look forward to working with the Reserve Bank of India and other relevant government departments to create a trustworthy digital lending environment.

The government's actions to ban predatory lending apps come as a welcome step to ensure that only legitimate lending apps operating under the RBI's regulatory framework are available to consumers. Such measures will also help to expand the market for legitimate entities and improve consumer confidence in digital lending.

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