Regulatory Compliance
Digital Lending
Application Audit
A Digital Lending Application Audit is a type of audit focused on ensuring that digital lenders and financial institutions (including FinTech) are compliant with a thorough set of laws and regulations, and ethical guidelines. These audits are in place to ensure transparency, security, and responsible lending practices. This includes a thorough review of the compliance of the application with legal requirements, information security measures, and fairness in operation. By maintaining stringent compliance, these audits help sustain the integrity and trustworthiness of digital lending.
Methodology
To ensure compliance with the Credit Information Companies Act 2005, organizations must use a structured methodology that includes defining the compliance scope, developing a comprehensive audit plan, and finalizing an audit schedule in conjunction with all relevant departments.
The procedure includes completing a thorough audit of data handling processes, security measures, and compliance with CICRA standards, followed by the creation of a full report and attestation of outcomes. The report includes an outline, specific findings, and actionable recommendations to ensure that all procedures are transparent, secure, and in accordance with regulatory requirements.
Why Choose Us?
Digital Lending Application Audit has a process with respect to following the defined framework. It begins with finding gaps between the current cloud security and the rules specified in the standard’s controls. Then, policies are formed and processes are dedicated to protecting personal data. To ensure effectiveness these controls must be implemented and audited regularly. Finally, final reviews are done to make sure your program is on track and that sensitive information remains secure.
Our Expertise
Our team of certified cybersecurity compliance experts have hands-on experience on best of industry SIEM, network monitoring, and data loss prevention tools. Our experts have joined hands with various organizations of a wide range of industries and thus, hold expertise in standard, industry-based, and regulatory compliances. iLeads’s compliance implementers and auditors are well-versed in international IT frameworks and act, hence, delivering an optimized solution unique to your organization.
Why do organizations need it?
Organizations need a digital lending application audit to ensure compliance with complex regulations, protect sensitive data, and mitigate risks such as fraud and money laundering. By maintaining robust compliance, organizations can build customer trust, reduce legal risks, and enhance their reputation and operational efficiency, ultimately fostering industry growth and innovation.
- Ensure adherence to compliance guidelines to avoid legal penalties.
- Protect sensitive customer information from breaches and cyber threats.
- Identify areas of optimization within the lending application.
- Proactively address risk associated with digital lending.
- Enhance reputation by demonstrating commitment to compliance standards.
Our Approach
Our cyber security approach prioritizes a layered, proactive defense strategy encompassing robust network security, vigilant endpoint protection, strict access controls, regular vulnerability assessments, employee security awareness training, and a rapid incident response plan, ensuring the protection of sensitive data and systems against evolving cyber threats by focusing on the “people, process, and technology” pillars.
Business Understanding
Application Walkthrough
Preparation of Requirement Sheet
Evidence Collection
Evidence Validation
Reporting
Business Understanding
We begin by gaining a comprehensive understanding of the client’s business model, objectives, and regulatory environment. This ensures our audit is tailored to the specific needs and risks associated with the digital lending platform.
Application Walkthrough
Our team conducts a detailed walkthrough of the digital lending application to identify critical functionalities, workflows, and integration points. This step helps in mapping out the audit scope accurately.
Preparation of Requirement Sheet
We compile a detailed requirement sheet that outlines the specific data, documentation, and access needed for the audit. This ensures that all necessary information is gathered systematically.
Evidence Collection
The security team at iLeads gathers all the relevant evidence, including logs, configurations, policies, and user data. This step involves collaboration with the client’s technical and compliance teams to ensure completeness.
Evidence Validation
Our auditors meticulously validate the collected evidence against industry standards and regulatory requirements. This step helps in identifying any discrepancies or non-compliance issues.
Reporting
We prepare a comprehensive audit report that details findings, risk assessments, and recommendations for remediation. This report is designed to help the client enhance their digital lending application’s security and compliance posture.
Benefits
Cybersecurity is important because it protects organizational assets and services from malicious attacks and safeguards all types of data, including but not limited to sensitive data, protected health information (PHI), and personally identifiable information (PII) from theft and loss.
FAQ's
What are the RBI's regulations concerning the Default Loss Guarantee (DLG) in digital lending?
In the case of an implicit Default Loss Guarantee (DLG) arrangement, the provider cannot take on a performance risk exceeding 5% of the underlying loan portfolio. The DLG should be structured as either (i) a cash deposit, (ii) a fixed deposit with a designated commercial bank, or (iii) a bank assurance.
What are the RBI's guidelines for digital lending?
The guidelines cover lending service providers (LSPs) and digital lending apps (DLAs). DLAs are user-friendly mobile and web-based applications that facilitate digital lending services, such as a bank's mobile banking app that allows users to apply for a loan directly from their phone.