March 19, 2024 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has issued guidelines to NBFCs involved in digital lending to ensure best practices in advertisements and call centre management, said a press release issued on Monday.
The guidelines were designed to prioritize borrower protection and to prevent deceptive marketing and unethical call centre practices.
Non-banking financial companies (NBFCs) licensed by the SECP are extensively promote their loans products through various social media platforms.
Digital lending NBFCs are dependent on call centre infrastructure, whether owned or outsourced, to conduct verification, manage recovery collection and provide customer services.
Consequently, call centers have become an integral aspect of their business operations.
The SECP said it recognizes the need for responsible and ethical marketing practices and call centre operations.
Responsible and ethical behavior necessitates that NBFCs use transparency and honesty in their advertising, and that they make these standards a requirement for their call centres.
It said that the guidelines will aid NBFCs in adopting best practices in advertising and call centre management while ensuring borrower safeguards.
“All NBFCs, involved in digital lending must adhere to these guidelines for marketing through various channels,” it said.
This includes influencers and content creators, and call centre services, both in-house and outsourced.
