| Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has approved the first digital lending app of Pakistan while 10 others are being evaluated, a new source reported on April 11. Sources stated it as a constructive step for making sure digital lending industry operates with accountability and in a transparent manner.
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The news source mentioned that three existing digital lenders have furnished their cyber security audit reports along with certificates issued by PTA-approved audit firms. This signifies their commitment to protecting the data of their customers.
Keeping in mind the increasing number of complaints, the SECP has adopted several measures to address this issue. In December 2022, SECP issued Circular 15 of 2022, which clarified the regulatory framework for Non-Banking Finance Companies (NBFCs) engaged in digital lending. The objective of this circular was to address and identify regulatory gaps in digital lending and to make sure NBFCs comply with certain criteria to protect the interests of consumers.
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Moreover, the guideline defined the obligations of lending NBFCs in handling customer complaints and maintaining the confidentiality of customer information. It also highlighted detailed requirements for mobile application security to safeguard customer data against cyber threats. |
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