SECP publishes Digital Lending Applications Whitelist

April 12, 2023 (MLN): Pursuant to Google’s updated policy for digital lending apps from Pakistan, the Securities and Exchange Commission of Pakistan (SECP) has published a Whitelist of Digital Lending Applications on its website, the statement issued by the commission on Wednesday unveiled.

The Whitelist will serve as a reference point for Google to validate the regulator’s approved apps before listing them on Play Store with effect from May 31, 2023. The list will be updated as and when an app gets approved or rejected by SECP, the statement added. 

The Whitelist contains the names of approved apps owned by licensed Non-Banking Financial Companies (NBFCs), as well as the apps of licensed NBFCs which were operating as on December 27, 2022, and have applied for approval. Cyber security certification from a PTA-approved firm, certifying that the apps don’t get access to customers' personal data.

Circular 15 mandates compliance with digital lending standards, inter-alia the placement of adequate cybersecurity measures and controls to ensure confidentiality, integrity, and the restriction from accessing borrowers’ phone books or photo galleries, it noted. 

"SECP encourages all NBFCs engaged in digital lending activities to comply with the updated requirements specified in Circular 15 and submit requisite documentation for app approval at the earliest to avoid any inconvenience," the statement read.

Potential borrowers are also encouraged to verify the app status from SECP’s Whitelist before taking any exposure with any digital lending app.

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