The ‘saviour’ loan apps that trapped pandemic-struck Indians

‘The apps proliferated as the pandemic and the lockdown left millions in India jobless. While many working class jobs have returned, salaried professionals - from engineers and software developers to salesmen - and small businesses have struggled to survive. So the apps helped them out when they needed money quickly.

‘For loans as small as $150 and for periods as short as 15 days, these apps charge a one-time processing fee, a convenience fee and steep interest rates - some as high as 30%. Compare this to to Indian banks, which lend at 10-20% with a tenure of at least 12 months.

‘Like many other apps, at the time of download, these apps too ask for permission to access contacts and photo galleries. When an unsuspecting borrower agrees to this, they become more vulnerable.

"When I investigated one such case, I found that these apps are actually not only able to read and access your contact list, they're also capturing your images, videos and location. They also know many things about you - like, where you have actually used this money, to whom you have transferred this money," says cyber security expert Amit Dubey.’

Read here (BBC, Feb 13, 2021)

Covid-19 is causing a microcredit crunch

‘Today the lending portfolios of microfinance institutions (mfis) are worth a combined $124bn. But the industry is in trouble. Covid-19 is straining its finances. Repayments, usually done in cash and in person, have plummeted, yet the banks and investors which provide the mfis with funds still expect money. A crunch looms. More than two-thirds of mfis have cut lending, often by at least half. Nearly one-third do not have enough cash to meet outflows this quarter. If only this were the industry’s only problem. Compounding it is a set of deeper, longer-standing issues that have begun to undermine its reputation for efficiency and probity.’

Read here (The Economist, August 15, 2020)

The role of banks in a pandemic

Piyush Gupta, Group CEO, DBS Bank: ‘The scale of the pandemic is such that it cannot be left to governments to find resolution on their own. And the truth is that private sector corporations are some of the biggest actors on the world stage, and have an ability to carry influence across borders. There is also no real conflict between shareholder and stakeholder interests. The issue is one of timeframes. While there may be some trade-offs between maximising shareholder returns and providing societal benefits in the short term, addressing broader issues in society is completely consistent with shareholder interests in the long term.’

Read here (LinkedIn, April 21, 2020)

For the record -- Beyond containment: Health systems responses to COVID-19 in the OECD

‘Health systems are facing the most serious global pandemic crisis in a century. Containing and mitigating the spread and infection rate of the coronavirus SARS-CoV-2 is the first priority of public health authorities to distribute the number of infections over time and, if possible, reduce the incidence of the disease it causes (COVID-19). However, beyond containment, additional measures - operational, financial, and R&D - are needed to provide effective patient care and reduce the pressure on health systems to manageable levels. The main focus of this brief is on the policies aimed at providing effective care and managing the pressure on health systems.

‘Four key measures health systems are putting in place in response to the epidemic are considered: 1) ensuring access of the vulnerable to diagnostics and treatment; 2) strengthening and optimising health system capacity to respond to the rapid increase in caseloads; 3) how to leverage digital solutions and data to improve surveillance and care; and 4) how to improve R&D for accelerated development of diagnostics, treatments and vaccines.’

https://oecd.dam-broadcast.com/pm_7379_119_119689-ud5comtf84.pdf

Download here (OECD, April 16, 2020)

Many Malaysians say not financially prepared for an extended MCO — Survey released by the Department of Statistics Malaysia (DOSM)

‘Generally, more than half of survey respondents (52.6%) said they were most affected when it came to financial savings, whereas 6.2% said they were least affected. Two-thirds or 71.4% of self-employed respondents said they have sufficient savings for less than one month.’

Read here (The Edge, April 9, 2020)