The SECP has identified SmartQarza as the approved app and is presently assessing three additional apps for potential final endorsement.
In order to prevent online fraud, the Securities and Exchange Commission of Pakistan (SECP) released a whitelist of digital lending apps on Wednesday. Google will use this list as a guide when adding these apps to the Play Store starting on May 31.
The SECP has identified SmartQarza as the approved app and is presently assessing three additional apps for potential final endorsement.
Statement from the regulatory body stated that Pakistani authorities approached Google about the problem of online fraud involving unauthoritative apps that offered personal loans and investments, and Google was urged to forbid such apps from operating in Pakistan.
According to the statement, “The whitelist of digital lending apps will be updated as and when an app gets approved or rejected by SECP.” 75 illegal apps on the Play Store have been found and shared by the regulator. Apps must now obtain cybersecurity certification from a business that has been authorised by the Pakistan Telecommunications Authority (PTA) in order to demonstrate to the SECP that they do not access users’ personal data.
The names of approved apps owned by licenced Non-Banking Financial companies (NBFCs) are listed on the SECP whitelist, along with the names of NBFCs’ apps that have applied for approval and were in operation as of December 27, 2022.
Additionally, these apps must adhere to Pakistani legal requirements regarding digital lending, implement sufficient cybersecurity safeguards and privacy controls, and be prohibited from accessing the user’s phone book or photo gallery. Pakistan has joined India, Indonesia, the Philippines, Nigeria, and Kenya as the sixth nation to add new restrictions to apps that offer digital loans.
The names of approved apps owned by licenced non-banking financial companies (NBFCs), as well as the apps of licenced NBFCs that were in operation as of December 27, 2022, and have applied for approval, are listed on the whitelist, according to the regulator.
“A PTA-approved company’s cyber security certification, attesting to the fact that the apps don’t access users’ personal information.” In order to avoid any inconvenience, SECP urged all NBFCs involved in digital lending activities to adhere to the updated requirements outlined in Circular 15 and submit the necessary documentation for app approval as soon as possible.
The requirements of Circular 15 must be followed, including the installation of adequate cybersecurity measures and controls to ensure confidentiality, integrity, and the prohibition of access to borrowers’ phone books or photo galleries.
With the use of digital lending apps having grown significantly in recent years, SECP‘s action aims to ensure the safety and security of online transactions in Pakistan. In order to stop fraud and shield customers from potential scams, SECP has compiled a list of apps that have been deemed trustworthy.
The SECP’s initiatives are part of a larger movement in Pakistan to increase regulation of the online lending industry. The government has recently implemented new regulations governing the registration and licencing of digital lenders, among other measures to strengthen oversight and stop abuse.