SECP Guidelines Issued for Digital Lenders: Enhancing Borrower Protection
The Securities and Exchange Commission of Pakistan (SECP) has issued guidelines to NBFCs engaged in digital lending.
SECP guidelines digital lending aims to ensure best practices in advertisements and call centre management.
This significant move underscores the SECP’s commitment to regulating the digital lending sector effectively.
Released on March 18, these meticulously designed guidelines aim to prioritize borrower protection and to curb deceptive marketing and unethical call centre practices.
Promotion of Loan Products
Non-banking financial companies (NBFCs) licensed by the SECP extensively promote loan products through various social media platforms.
Digital lending NBFCs, relying on call centre infrastructure, whether owned or outsourced, have acknowledged the vital role that call centres play in their business operations.
These call centres are crucial for verification, recovery collection, and customer services.
Recognition of Responsible Practices
Acknowledging the imperative of responsible and ethical marketing practices and call centre operations, the SECP emphasizes the necessity for transparency and honesty in advertising by NBFCs.
Enforcing these standards in call centres is crucial. The guidelines are ready to assist NBFCs in adopting best practices in advertising and call centre management.
They ensure borrower safeguards and promote transparency and ethical conduct in the digital lending industry.
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Mandatory Adherence to Guidelines
All NBFCs involved in digital lending must adhere to these guidelines for marketing through various channels.
This requirement includes influencers and content creators, as well as call centre services, regardless of whether they are managed in-house or outsourced.
The SECP mandates this mandatory adherence to ensure compliance and uphold industry standards.
Accessible on the SECP’s website, these guidelines serve as a pivotal resource for ensuring compliance and upholding industry standards.
