The Securities and Exchange Commission of Pakistan (SECP) has approved the first Peer-to-Peer (P2P) Lending Service Provider in the country.
In a statement, SECP said that the emergence of “Finja Invest” as Pakistan’s inaugural P2P service provider platform signifies a noteworthy achievement towards embracing digital transformation and promoting sustainable development of Pakistan’s financial sector.
Finja Lending Services Limited (FLSL) has been granted approval after rigorous testing in SECP’s Regulatory Sandbox. The regulator’s comprehensive evaluation process assessed the service provider’s adherence to regulatory guidelines, risk management protocols, data protection measures, and overall operational efficiency, the statement said.
SECP had earlier introduced an enabling regulatory framework for P2P lending within the existing NBFC Regulations, 2008. This framework provides the foundation for P2P service providers to operate transparently, securely, and in compliance with regulatory standards, fostering trust and confidence among investors and borrowers.
SECP said that it acknowledges the significance of P2P lending as an alternative financing option that has the potential to empower individuals and small businesses. P2P lending platforms bring numerous benefits to the financial ecosystem and contribute towards the growth and accessibility of financial services. They also bridge the gap between borrowers and lenders.
SECP said that it remains dedicated to creating an environment that encourages technological advancements while upholding robust regulatory standards.
You sound as if SECP’s blessings means a Legit Fintech. Do you know majority of the Fintech frauds Apps on mobile are run by companies that “SECP approved” ?
SECP approval means nothing much to safeguard people’s money from these scammers.