Pursuant to Google’s updated policy for digital lending apps from Pakistan, the Securities and Exchange Commission of Pakistan (SECP) has published a whitelist of digital lending applications.
The whitelist will serve as a reference point for Google to validate the regulator’s approved apps before listing them on Play Store with effect from May 31, 2023. The list will be updated as and when an app gets approved or rejected by SECP.
The whitelist contains the names of approved apps owned by licensed Non-Banking Financial Companies (NBFCs), as well as the apps of licensed NBFCs which were operating as on December 27, 2022, and have applied for approval. Cyber security certification from a PTA-approved firm, certifying that the apps don’t get access to customers’ personal data.
What apps are on the whitelist?
As per the list, the only approved app of a licensed lending NBFC is Gold Lion Financial Private Limited’s SmartQarza. Moreover, the names of apps of licensed lending NBFCs under evaluation include Mirco Cred Financial Services Ltd’s UdharPaisa, Humraah Financial Services Limited’s Zaroorat Cash, and Seedcred Financial Services Limited’s Barwaqt.
Circular 15 mandates compliance with digital lending standards, inter-alia the placement of adequate cybersecurity measures and controls to ensure confidentiality, integrity, and the restriction from accessing borrowers’ phone books or photo galleries.
In its statement, the SECP said that it encourages all NBFCs engaged in digital lending activities to comply with the updated requirements specified in Circular 15 and submit requisite documentation for app approval at the earliest to avoid any inconvenience.
SECP has also asked potential borrowers to verify the app status from SECP’s whitelist before taking any exposure with any digital lending app.
