The Securities and Exchange Commission of Pakistan (SECP) has issued the Whitelist of Digital Lending Applications on its website in accordance with Google's revised policy for digital lending apps in Pakistan.
The SmartQarza app, which is a licensed non-banking financial company (NBFC) with the name Gold Lion Financial Private Limited, has initially been accepted.
In addition, the SECP is currently reviewing three other applications for approval: Udhar Paisa Safe & Reliable Loan (licenced NBFC as Mirco Cred Financial Services Ltd.), Zaroorat Cash (Humraah Financial Services Limited), and Barwaqt (Seedcred Financial Services Limited).
According to sources in the SECP, ten further licensed digital apps have been invited to submit applications for clearance.
Google will use the whitelist as a starting point when listing businesses on the Play Store.
Apps that have not received SECP approval will no longer be accessible through the Play Store after May 31, 2023. When a digital application is accepted or rejected by SECP, the whitelist is modified.
The list includes the names of licensed NBFCs' authorized apps as well as the applications of licensed NBFCs that were in operation as of December 27, 2022, but have not yet received approval. It is necessary to obtain cyber security certification from a PTA-approved company to confirm that the apps don't access users' personal information.
The requirements of Circular 15 must be followed, including the installation of suitable cybersecurity measures and controls to maintain confidentiality, integrity, and the prohibition of access to borrowers' phone books or photo galleries.
To avoid any difficulty, the SECP has requested that all NBFCs participating in digital lending activities adhere to the amended specifications set forth in Circular 15 and submit the necessary documentation for app clearance as soon as possible.
Additionally, prospective borrowers are advised to check the app's status on SECP's whitelist before registering for any digital lending apps.
Many people have expressed their displeasure that digital lending applications have been charging greater rates than indicated, accessing consumers' personal data, and employing unethical methods to collect loans.
The Competition Commission of Pakistan (CCP) issued a public warning last month over the rise of fraudulent mobile app-based microcredit and nano loan services that prey on consumers with lower to intermediate incomes.
These applications have been downloaded more than 10 million times, according to the CCP's first findings. It claimed that it was looking into more than 30 applications.
The SmartQarza app, which is a licensed non-banking financial company (NBFC) with the name Gold Lion Financial Private Limited, has initially been accepted.
In addition, the SECP is currently reviewing three other applications for approval: Udhar Paisa Safe & Reliable Loan (licenced NBFC as Mirco Cred Financial Services Ltd.), Zaroorat Cash (Humraah Financial Services Limited), and Barwaqt (Seedcred Financial Services Limited).
According to sources in the SECP, ten further licensed digital apps have been invited to submit applications for clearance.
Google will use the whitelist as a starting point when listing businesses on the Play Store.
Apps that have not received SECP approval will no longer be accessible through the Play Store after May 31, 2023. When a digital application is accepted or rejected by SECP, the whitelist is modified.
The list includes the names of licensed NBFCs' authorized apps as well as the applications of licensed NBFCs that were in operation as of December 27, 2022, but have not yet received approval. It is necessary to obtain cyber security certification from a PTA-approved company to confirm that the apps don't access users' personal information.
The requirements of Circular 15 must be followed, including the installation of suitable cybersecurity measures and controls to maintain confidentiality, integrity, and the prohibition of access to borrowers' phone books or photo galleries.
To avoid any difficulty, the SECP has requested that all NBFCs participating in digital lending activities adhere to the amended specifications set forth in Circular 15 and submit the necessary documentation for app clearance as soon as possible.
Additionally, prospective borrowers are advised to check the app's status on SECP's whitelist before registering for any digital lending apps.
Many people have expressed their displeasure that digital lending applications have been charging greater rates than indicated, accessing consumers' personal data, and employing unethical methods to collect loans.
The Competition Commission of Pakistan (CCP) issued a public warning last month over the rise of fraudulent mobile app-based microcredit and nano loan services that prey on consumers with lower to intermediate incomes.
These applications have been downloaded more than 10 million times, according to the CCP's first findings. It claimed that it was looking into more than 30 applications.