Google Sets Stricter Policy for Digital Loan Apps in Pakistan

At the request of the Securities and Exchange Commission of Pakistan (SECP), Google has announced a new policy for personal loan apps (digital lenders) in Pakistan to submit country-specific licensing documentation to prove their ability to provide or facilitate personal loans.

Sources told ProPakistani that the SECP’s initiatives comprise enforcement actions, consultations, and engagements with pertinent stakeholders such as Google-Asia Pacific, Apple, mobile wallet operators, and telecom service providers. These endeavors are intended to safeguard the interests of consumers and ensure that all digital lending platforms comply with the prescribed regulatory requirements.

In this regard, Google in its April 2023 policy update has restricted personal loan apps targeting users in Pakistan from accessing user contacts or photos. Further, Google has now made it mandatory for personal loan apps in Pakistan to submit country-specific licensing documentation to prove their ability to provide or facilitate personal loans.

After India, Indonesia, the Philippines, Nigeria, and Kenya, Pakistan is the 6th country in the world for which Google has introduced additional requirements for digital lending apps which include the following:

1. Each NBFC can only publish one digital lending app. Developers who attempt to publish more than one app per NBFC risk the termination of their developer account and any other associated accounts.
2. Complete the personal loan app declaration for Pakistan and provide the necessary documentation.
3. Submit proof of approval from the SECP to offer or facilitate digital lending services in Pakistan.
4. Provide additional information or documents relating to compliance with the applicable regulatory and licensing requirements.