How do loan apps access your text messages?

Loan apps access SMS by requesting the READ_SMS permission (or related permissions) on Android. Tala's privacy policy explicitly states they collect "SMS keywords" from your device . The World Bank confirms that "personal information is collected from handsets, browser history, etc. without customer consent" as an improper data practice .

Why They Want SMS Access:

• Read OTP (one-time password) messages to automatically verify your phone number
• Analyze transaction messages from your bank to assess spending habits and income
• Read repayment reminder messages from other lenders
• Extract contacts from your messages to build social graphs