(Yicai Global) April 9 -- Alipay, the fintech platform run by Ant Financial Services Group, is looking to improve its data collection processes after China’s central bank fined it for breaching data protection regulations.
The Hangzhou-based firm has begun a step-by-step improvement plan and has already rolled out some measures with approval from the regulator, it said yesterday. The central Hangzhou branch of the People’s Bank of China decided on March 22 to fine the firm CNY180,000 (USD28,568) for a data protection breach and improper promotions, but didn’t announce it until yesterday.
Alipay published misleading video campaigns and its collection of personal financial information failed to meet minimum security requirements, the regulator said, adding that the firm also used data inappropriately.
“Weak internal measures at third-party payment agencies cannot provide sufficient protection for consumers,” the bank continued, saying there was a high risk of information being leaked.
PBOC’s Shanghai branch fined Alipay for the same offence as early as May 2017, imposing a CNY30,000 penalty for a violation of payment business rules and requesting the company correct its malpractices.