Data Localization and Its Impact on FinTech in India

Technologies such as cloud computing, data analytics, artificial intelligence, the internet of things, and APIs have significantly underscored data and data availability at the desired time and location. However, increased digitization has led to barriers such as data localization regulations, which are hampering the growth of technology.

Data localization laws place restrictions on where and how data can be stored or transferred.

Data localization laws require all or specific data held by companies to be stored and/or processed locally in a particular country or a local computing environment, rather than on the cloud. The scope and stringency of these laws vary across countries. Data localization laws apply to the following types of data:

  • Profile data
  • Financial data
  • Health data
  • Employee data
  • Payment data 

Data Localization in Countries

China, Russia, Indonesia, Vietnam, and Nigeria are some of the countries with data localization laws in place.

China and Russia are among th …