SECP’s initiatives include enforcement actions and interactions with relevant parties like Apple, Google-Asia Pacific, mobile wallet operators, and telecom service providers.
Google has announced a new policy requiring personal loan apps (digital lenders) in Pakistan to submit country-specific licencing documentation to demonstrate their capacity to offer or facilitate personal loans, at the request of the Securities and Exchange Commission of Pakistan (SECP).
According to sources who spoke to the media, the SECP’s initiatives include enforcement actions, consultations, and interactions with relevant parties like Apple, Google-Asia Pacific, mobile wallet operators, and telecom service providers.
These initiatives aim to protect consumer interests and guarantee that all digital lending platforms abide by the established regulatory standards.
As a result, Google has prohibited personal loan apps targeting users in Pakistan from accessing contacts or photos in its April 2023 policy update.
Additionally, Google has recently made it mandatory for Pakistani personal loan apps to submit licencing information specific to that nation in order to demonstrate their capacity to offer or facilitate personal loans.
Pakistan is the sixth nation in the world for which Google has introduced additional requirements for digital lending apps, which include the following:
One digital lending app can only be published by each NBFC. Developer accounts and any related accounts could be terminated if they attempt to publish more than one app per NBFC.
Fill out the personal loan application declaration for Pakistan and submit the required paperwork. In order to provide or facilitate digital lending services in Pakistan, one must provide proof of SECP approval. Give more details or documentation about compliance with the necessary licencing and regulatory requirements.
Digital lending is a type of loan acquisition strategy that enables people to use online platforms to apply for and receive loans without having to physically go to a bank or other financial institution. With this approach, borrowers can submit their loan applications, get approved, and make payments all online.
Younger, tech-savvy borrowers are increasingly choosing this type of lending because they value the convenience and flexibility it provides. Digital lending has grown tremendously in recent years thanks to the widespread use of smartphones and the expanding selection of credit options.