Islamabad: The Securi­ties and Exchange Commission of Pakistan (SECP) has introduced a comprehensive framework for digital lenders to offer innovative products such as buy now, pay later services, employer-integrated earned wage access, etc.

The Securities and Ex­change Commission of Pakistan, in partnership with industry stakeholders, conducted a comprehensive review of the current framework to promote innovation and ensure consumer protection.

After serious concerns by the digital lending Non-Banking Financial Compa­nies (NBFCs) that the operational framework has to be rationalised, the SECP has issued a new Circular 12/2024 that has also consolidated the require­ments of Circulars 15/2022, 10/2023, and 15/2023.

The integration of multiple NBFCs with whitelisted digital lending platforms via Application Program­ming Interface will facilitate the expansion of lending opportunities to a broa­der range of borrowers.

The revised framework introduces a host of new product verticals tailored to meet the evolving needs of borrowers and further strengthening the cybersecurity standards.

The SECP has said that among these innovations are the introduction of Embedded Lending thr­ou­gh APIs, Buy Now Pay Later services, and Emp­loyer Integrated Earned Wage Access. The revised guidelines aim to enhance the access to finance for Small and Medium Enter­prises thro­ugh Busi­ness-to-Business financing channels.

Amid serious pressures from the international donor agencies the SECP has decided to enhance the digital lending ecosystem in country that will cater to consumers and businesses, promoting transparency, data protection, and innovative financial solutions.

Published in Dawn, May 17th, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

A new operation
Updated 25 Jun, 2024

A new operation

Clear deterrent action is needed against terrorist groups, but without upending the lives of people in the affected areas.
Power theft
25 Jun, 2024

Power theft

FEDERAL Energy Minister Awais Leghari’s statement during a TV interview that electricity theft amounts to Rs600bn ...
Fatal air
25 Jun, 2024

Fatal air

TOXIC air can cost us our children. It causes life-threatening illnesses, inflicts lifelong damage and leads to ...
Time for dialogue
Updated 24 Jun, 2024

Time for dialogue

If the PML-N and PTI remain mired in mutual acrimony, an ever-widening gap will continue to allow non-political forces to assert themselves.
Property taxes
24 Jun, 2024

Property taxes

ACCORDING to reports in the local media, along with the higher taxes imposed on real estate in the recent budget, ...
Fierce heat
24 Jun, 2024

Fierce heat

CLIMATE change is unfolding as predicted by experts: savage heat, melting glaciers, extreme rainfall, drought, ...