The Securities and Exchange Commission of Pakistan (SECP) is evaluating ten new applications for new digital lenders in Pakistan.
An SECP document revealed that the regulator has granted approval to the first digital lending app, while ten additional applications are currently under evaluation.
This is a constructive step towards ensuring that the digital lending industry operates transparently and with accountability.
Three existing digital lenders have already furnished their Cyber Security Audit Reports, along with Certificates issued by PTA-approved audit firms, signifying their commitment to safeguarding their customer’s data.
In response to the increasing number of complaints, the Securities and Exchange Commission of Pakistan (SECP) has undertaken several measures to address the issue.
On December 27, 2023, Circular 15 of 2022 was issued, which sets forth a regulatory framework for NBFCs engaged in digital lending. The primary objective of this circular is to identify and address regulatory gaps in digital lending and to ensure that NBFCs comply with certain essential criteria to safeguard the interests of consumers.
The circular includes provisions related to Disclosure requirements, Pricing Policy, Credit Risk, Advertisement, Grievance Redressal
Mechanism, Confidentiality and Mobile Application Security. These guidelines have been designed to provide customers with comprehensive information about loan terms, pricing structure, and potential risks associated with borrowing.
Furthermore, the guidelines define the obligations of lending NBFCs in handling customer complaints and preserving the confidentiality of customer information. Detailed requirements for Mobile Application Security are also laid out to safeguard customer data against cyber threats.
I m not sure that Pakistan is starting digitally
Why don’t you name those digital lending firms?