ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has decided to take stern sanctions against fintechs in case of a breach of their clients’ data after taking note of the numerous complaints made against the digital lending platforms. The complaints will also be regularly investigated.
The SECP has ordered digital lending non-banking finance companies (NBFC) to extend the return time for “micro loans” from 21 days to 30 days and to start awareness campaigns warning customers that failure to repay the loan will result in their inclusion on a blacklist for the financial industry.
The SECP and representatives of eight NBFCs engaged in digital lending recently met, and it was concluded that the call centre workers of the fintechs required specialised training to inform them of the consequences of non-payments
However, the audience’s attention remained on the success of Seedcred and Sarmaya, the only two quick digital lending platforms that offer nano loans of up to Rs25,000 by putting the money into customers’ accounts. The meeting was presided over by SECP Chairman Amir Khan.
