The Securities and Exchange Commission of Pakistan (SECP) has given its approval to the first Peer-to-Peer (P2P) Lending Service Provider in the country, marking a significant milestone in embracing digital transformation and promoting the sustainable development of Pakistan’s financial sector.
The approved platform, “Finja Invest” by Finja Lending Services Limited (FLSL), successfully underwent rigorous testing in SECP’s Regulatory Sandbox, ensuring compliance with regulatory guidelines, risk management protocols, data protection measures, and operational efficiency.
SECP had previously established a regulatory framework for P2P lending under the existing NBFC Regulations of 2008. This framework lays the groundwork for P2P service providers to operate transparently, securely, and in accordance with regulatory standards, fostering trust and confidence among investors and borrowers.
Recognizing the importance of P2P lending as an alternative financing option, SECP acknowledges its potential to empower individuals and small businesses, bridging the gap between borrowers and lenders.
SECP remains committed to creating an environment that promotes technological advancements while maintaining robust regulatory standards. P2P lending platforms bring numerous benefits to the financial ecosystem, contributing to the growth and accessibility of financial services.
With the approval of Finja Invest, SECP has taken a significant step towards encouraging innovation and supporting the evolving landscape of Pakistan’s financial sector.