AU Small Finance Bank has confirmed it is investigating a potential data leakage incident involving its third-party Software-as-a-Service platform used for onboarding vehicle loan customers. The platform, hosted by a global vendor, contains customer information obtained at the time of loan onboarding. Preliminary findings suggest a possible leakage of data for some vehicle loan customers, with an estimated 28.5 lakh customers onboarded via this system. The bank has initiated a forensic investigation and reported the matter to regulatory authorities.
AU Small Finance Bank Addresses Data Leak Concerns
AU Small Finance Bank has issued a clarification regarding a media report titled “AU Bank probes potential data leak”. The bank acknowledged becoming aware on October 29, 2026, of a potential data leakage incident. This incident is linked to a third-party Software-as-a-Service (“SAAS”) platform that the bank uses for onboarding its vehicle loan customers.
Platform and Customer Information
The SAAS platform is hosted and managed by a global third-party vendor and contains customer information acquired during the loan onboarding process. Based on initial findings, the incident may have resulted in the leakage of data pertaining to some of the bank’s vehicle loan customers. It is noted that approximately 28.5 lakh vehicle loan customers have been onboarded through this particular platform.
Investigation and Impact
AU Small Finance Bank has launched a comprehensive internal and external forensic investigation, engaging leading cybersecurity firms to determine the exact nature and extent of the potential data leakage. The bank has reassured stakeholders that its other systems remain unaffected and all services are operating normally. The incident is not expected to have any impact on the bank’s business operations, financial performance, or business continuity. Customer protection remains the bank’s highest priority.
Regulatory Reporting
The matter has been reported to relevant regulatory authorities, including the Reserve Bank of India and CERT-In, in compliance with applicable regulatory requirements. AU Small Finance Bank will continue to monitor the situation closely and will provide further disclosures as necessary.
Source: BSE
