Ten fresh applications for new digital lenders in Pakistan are being evaluated by the Securities and Exchange Commission of Pakistan (SECP).
According to an SECP document, the regulator has approved the first digital loan application, and ten more are now being considered.
This is a helpful step towards ensuring that the online lending sector operates openly and responsibly.
Three current digital lenders have already provided their Cyber Security Audit Reports and Certifications from auditing firms certified by the PTA, demonstrating their dedication to protecting the data of their customers.
The Securities and Exchange Commission of Pakistan (SECP) has taken a variety of actions to address the problem in response to the rising number of complaints.
Circular 15 of 2022, which outlines the regulatory framework for NBFCs engaging in digital lending, was released on December 27, 2023. This circular’s main goals are to find and close regulatory gaps in digital lending and to make sure that NBFCs adhere to a set of necessary standards to protect customers’ interests.
In addition to disclosure requirements, pricing policy, credit risk, advertising, grievance redress mechanism, confidentiality, and mobile application security are all addressed in the circular. These rules are intended to give clients thorough information about loan conditions, price, and potential dangers related to borrowing.
The rules also outline the duties of lending NBFCs with regard to addressing client complaints and maintaining client privacy. Also, specific guidelines for mobile application security are provided in order to protect consumer data from online dangers.