The Securities and Exchange Commission of Pakistan (SECP) has taken a significant step towards fostering innovation and safeguarding investors and consumers by granting approval to the country’s first Peer-to-Peer (P2P) lending service provider.
In a press release, SECP highlighted the emergence of “Finja Invest” as Pakistan’s inaugural P2P service provider platform, marking a milestone in the country’s digital transformation and the sustainable development of its financial sector.
Finja Lending Services Limited (FLSL) underwent rigorous testing in SECP’s Regulatory Sandbox to obtain approval. The evaluation process scrutinised the service provider’s compliance with regulatory guidelines, risk management protocols, data protection measures, and overall operational efficiency.
SECP had previously established a regulatory framework for P2P lending within the existing NBFC Regulations, 2008. This framework ensures transparent, secure, and compliant operations of P2P service providers, fostering trust among investors and borrowers.
Recognising the potential of P2P lending as an alternative financing option that empowers individuals and small businesses, SECP aims to bridge the gap between borrowers and lenders while contributing to the growth and accessibility of financial services.
Published in The Express Tribune, June 14th, 2023.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ